Red Violet (RDVT) Fell as It Joined the AI-driven Selloff

In its first-quarter 2026 capitalist letter, Wasatch Micro Cap Fund highlighted Red Violet, Inc. (NASDAQ:RDVT). Red Violet, Inc. (NASDAQ:RDVT) is simply a bundle and services institution that provides analytics and accusation solutions focusing connected individuality quality and hazard management. On June 18, 2026, Red Violet, Inc. (NASDAQ:RDVT) closed astatine $55.10 per share. One-month instrumentality of Red Violet, Inc. (NASDAQ:RDVT) was 8.81%, and its shares gained 16.12% implicit the past 52 weeks. Red Violet, Inc. (NASDAQ:RDVT) has a marketplace capitalization of $777.4 million.

Wasatch Micro Cap Fund stated the pursuing regarding Red Violet, Inc. (NASDAQ:RDVT) successful its Q1 2026 capitalist letter:

"On the downside, shares of Red Violet, Inc. (NASDAQ:RDVT), a main detractor from Fund show compared to the benchmark, fell unfortunate to the quarter's AI-driven selloff successful bundle stocks contempt reporting exceptional results. The institution leverages proprietary technologies and precocious analytics to present individuality quality solutions utilized by financial, retail and law-enforcement organizations to forestall fraud, get customers and mitigate risk. Red Violet provides its services done a cloud-native bundle level that offers insights and information that we judge would beryllium highly hard to replicate. In addition, the company's concern exemplary is highly scalable, arsenic the costs associated with the information utilized for its inheritance checks are fixed—and we expect Red Violet's margins to proceed to amended arsenic much customers utilize that data. We presumption Red Violet arsenic comparatively insulated from AI disruption fixed these advantages, and we added to the presumption connected weakness."

Red Violet, Inc. (NASDAQ:RDVT) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 19 hedge money portfolios held Red Violet, Inc. (NASDAQ:RDVT) astatine the extremity of the archetypal quarter, compared to 17 successful the erstwhile quarter. In Q1 2026, Red Violet, Inc.'s (NASDAQ:RDVT) gross accrued 17% year-over-year to $25.8 million. While we admit the imaginable of Red Violet, Inc. (NASDAQ:RDVT) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.