PITTSBURGH—Matthew Skaruppa, the Chief Financial Officer of Duolingo , Inc. (NASDAQ:DUOL), recently executed a series of stock sales amounting to approximately $1.4 million, according to a Form 4 filing with the Securities and Exchange Commission. The transactions, dated January 13, 2025, involved the sale of Class A Common Stock at prices ranging from $307.48 to $316.59 per share. The language learning company, now valued at $13.7 billion, has demonstrated strong financial performance with impressive gross profit margins of 73% and a remarkable 66% stock price increase over the past six months.
The transactions were conducted under Skaruppa's Rule 10b5-1 trading plan, which was adopted in May 2024. Following these sales, Skaruppa retains ownership of 63,266 shares of Duolingo's Class A Common Stock. According to InvestingPro, Duolingo maintains excellent financial health with a "GREAT" overall score, though current analysis suggests the stock may be trading above its Fair Value. InvestingPro subscribers have access to 15+ additional insights and detailed valuation metrics for DUOL and other stocks.
In other recent news, Duolingo Inc. has made significant strides in its growth trajectory. The language learning platform reported a notable increase in daily active users (DAUs) during its Third Quarter 2024 Earnings Call, marking a 54% growth year-over-year. The company's management has also raised its full-year guidance, anticipating bookings growth of 36% and revenue growth of 40%. Duolingo's new AI-powered video call feature, part of the Duolingo Max subscription tier, has been introduced to about half of its users, with plans for further expansion.
In recent developments, Duolingo's shares were the subject of analyst notes by Needham and BofA Securities. Needham maintained a Buy rating and increased the price target to $385, indicating the company's potential for a new growth phase driven by GenAI-powered features. However, BofA Securities downgraded Duolingo from "Buy" to "Neutral" due to less upside potential, while also raising the price target to $375.
These recent events reflect Duolingo's efforts to expand its user base and improve its financial performance. The company's focus on integrating advanced technology into its language learning platform and its robust growth prospects have been highlighted by analysts. However, the potential growth may already be reflected in the stock price, leading to the downgrade by BofA Securities.
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