The transactions were made as part of Hacker's Pre-established Rule 10b5-1 trading plan, which was adopted on September 11, 2024. After these sales, Hacker retains direct ownership of 72 shares of Duolingo (NASDAQ:)'s Class A common stock. In addition to the sales, the filing also reported 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 these shares are now directly controlled by Hacker. According to InvestingPro analysis, the stock seems to be overvalued at current levels, although it shows a strong acceleration and a 74.39% return in the last six months. These transactions show the continuous involvement of Hacker in the equity structure of Duolingo as a director and officer of the company. For a deeper understanding of Duolingo's valuation and financial health, check out the extensive Pro Research report available InvestingPro.
The transactions were made as part of Hacker's pre-established Rule 10b5-1 trading plan, which was adopted on September 11, 2024. Following this sale, Hacker retains direct ownership of 72 shares of Duolingo's Class A common stock.
In addition to the sales, the filing also reported 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 these shares are now directly controlled by Hacker.
These transactions highlight Hacker's continued involvement in Duolingo's equity structure as a director and corporate officer.
In other recent news, Duolingo Inc. reported strong growth in the third quarter of 2024 mobile phone revenue, 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 expanded its AI-powered video call feature to about half of its users, with plans to expand further.
Before the analyst, Needham maintained a Buy rating on Duolingo, raising the target price to $385 from $370, after a visit to Duolingo's new office in New York City. The firm believes that Duolingo's new level of growth, driven by GenAI-powered features, justifies the premium multiple despite the high current share price.
However, BofA Securities downgraded Duolingo from “Buy” to “Neutral” while raising its price target to $375 from $355. The company cited the possibility of a slight upside as the shares are currently trading at a higher price. Despite the positive long-term outlook, BofA Securities has performed well.
These are among Duolingo's latest developments, focused on expanding English learning content and functionality, especially for Android users. The company's strategies, including the use of GenAI to attract new English learners, are key drivers of its growth.
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