The transactions were made as part of Hacker’s predetermined Rule 10b5-1 trading plan, which was adopted on September 11, 2024. Following these sales, Hacker retains direct ownership of 72 shares Duolingo (NASDAQ:) Class A common stock. In addition to the sale, the filing also states that Hacker exercised stock options for 10,000 shares of Class B common stock, which were converted into Class A common stock. The exercise price of the option was $14.42 per shares, and those shares are now directly owned by Hacker. According to InvestingPro analysis, the stock appears to be overvalued at current levels, despite strong momentum with a return of 74.39% over the past six months. These transactions underscore Hacker’s continued involvement in Duolingo’s capital structure as a director and officer of the company. For a more in-depth look at Duolingo’s valuation and financial health, see the comprehensive Pro Research Report available at InvestingPro.
The transactions were made as part of Hacker’s predetermined trading plan under Rule 10b5-1, which was adopted on September 11, 2024. Following these sales, Hacker retains direct ownership of 72 shares of Duolingo’s Class A common stock.
In addition to the sale, the filing also states that Hacker exercised stock options for 10,000 shares of Class B common stock, which were converted into Class A common stock. The exercise price of the option was $14.42 per share, and those shares are now in direct owned by Hacker.
These transactions underscore Hacker’s continued involvement in Duolingo’s capital structure as a director and officer of the company.
In other recent news, Duolingo Inc. reported strong growth in its Q3 2024 earnings call, with a significant 54% increase in daily active users and increased guidance for the full year. The company expects booking growth of 36% and revenue growth of 40%. The language learning platform has also expanded its AI-powered video calling feature to about half of its users, with plans to expand further.
As for analysts, Needham maintained a Buy rating on Duolingo, raising his price target to $385 from $370, following a visit to Duolingo’s new office in New York. The firm believes Duolingo’s new phase of growth, fueled by GenAI-powered features, justifies a premium multiple despite the stock’s current high value.
However, BofA Securities downgraded Duolingo from “Buy” to “Neutral” while raising its price target to $375 from $355. The company cited less upside potential as the stock is now trading at a peak value. Despite the positive long-term outlook, BofA Securities downgraded its rating.
This is one of the recent developments for Duolingo, which focuses on expanding the content and functionality of English language learning, especially for Android users. The company’s strategies, including using GenAI to attract new English language learners, are key drivers of its growth.
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