Red Violet (NASDAQ:RDVT) Sees Large Volume Increase - What's Next?

• Red Violet shares traded heavily Monday, closing near $73.72 after multiple analyst upgrades. • Consensus rating is "Buy" with average price target of $83.50 from six analysts. • Q2 earnings beat estimates ($0.50 EPS vs $0.33 expected); insiders and institutions hold majority stake. Red Violet, Inc. (NASDAQ: RDVT) saw elevated trading volume Monday, with about 155,992 shares traded, down 8% from the prior session. Shares last traded at $73.72, slightly below the previous close of $74.00. Several brokerages have recently weighed in. Needham & Company initiated coverage with a "buy" rating and $90 price target. Lake Street Capital raised its target to $73 from $62 (buy). Zacks Research upgraded the stock to "strong-buy," Wall Street Zen moved it to "buy," and Weiss Ratings lifted its rating to "buy (b)." MarketBeat reports a consensus "Buy" rating with an average price target of $83.50. The stock's 50-day moving average is $74.82 and 200-day average is $60.77, with a market cap of $1.18 billion, P/E of 65.73, and beta of 1.79. In its most recent quarterly report (August 10), Red Violet posted $0.50 EPS versus a $0.33 consensus estimate, on revenue of $26.72 million versus $25.62 million expected. Return on equity was 16.12% and net margin 16.54%. Analysts forecast $1.18 EPS for the full year. Director William Livek bought 2,000 shares on August 27 at $71.49 each (~$142,980), a 9.65% increase in his stake. Insiders own 8.90% of the company. Institutional activity was notable: BlackRock opened a new $60.6 million stake in Q2, while Wasatch Advisors, Ashford Capital Management, Dimensional Fund Advisors, and Arrowstreet Capital all increased existing positions in Q1. Institutions and hedge funds collectively own 63.56% of shares. Red Violet develops data analytics and investigative platforms, including idiCORE for identity and risk assessment, and FOREWARN, a mobile app for real estate professionals.