Red Violet, Inc. (NASDAQ: RDVT) has declared a special cash dividend of $0.30 per share on its common stock, amounting to an aggregate payment of approximately $4.2 million. This decision is a result of the company's strong operational performance and financial resilience.
In 2024, Red Violet allocated $15.0 million to share buybacks under its stock repurchase program, demonstrating a commitment to reducing outstanding shares and increasing earnings per share for investors. Since May 2022, the company has repurchased 538,484 shares of common stock at an average price of $19.36 per share, totaling $10.4 million, with $4.6 million remaining under the program.
Furthermore, the company has continued to invest in technology, infrastructure, security, and go-to-market capabilities to ensure long-term competitiveness and sustainability. This reflects the company's dedication to ongoing innovation, infrastructure development, and market expansion.
Red Violet's CEO, Derek Dubner, emphasized the company's ability to accelerate its growth rate and generate strong cash flows throughout 2024. He expressed that the special dividend reflects the commitment to delivering value to shareholders while maintaining the flexibility to invest in strategic growth initiatives and strengthen the company's competitive position.
The announcement of this special cash dividend reflects Red Violet's confidence in its long-term potential and its commitment to enhancing returns through thoughtful capital allocation. The market has reacted to these announcements by moving the company's shares -1.2% to a price of $37.33. For more information, read the company's full 8-K submission here.
