The transactions were executed as part of Hacker's pre-established Rule 10b5-1 trading plan, which was adopted on September 11, 2024. Following these sales, Hacker retains direct ownership of 72 shares of Duolingo (NASDAQ:DUOL)'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 option exercise price was $14.42 per share, and these shares are now directly owned by Hacker. According to InvestingPro analysis, the stock appears overvalued at current levels, despite showing strong momentum with a 74.39% return over the past six months.These transactions highlight Hacker's ongoing involvement in Duolingo's equity structure as both a director and officer of the company. For deeper insights into Duolingo's valuation and financial health, check out the comprehensive Pro Research Report available on InvestingPro.
The transactions were executed as part of Hacker's pre-established Rule 10b5-1 trading plan, 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 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 option exercise price was $14.42 per share, and these shares are now directly owned by Hacker.
These transactions highlight Hacker's ongoing involvement in Duolingo's equity structure as both a director and officer of the company.
In other recent news, Duolingo Inc. has reported strong growth in its third quarter 2024 earnings call, with a significant 54% increase in daily active users and a raised full-year guidance. The company expects bookings growth of 36% and revenue growth of 40%. The language-learning platform has also expanded its AI-powered video call feature to about half of its users, with plans for further expansion.
On the analyst front, Needham maintained a Buy rating on Duolingo, lifting the price target to $385 from $370, following a visit to Duolingo's new office in New York City. The firm believes Duolingo's new growth phase, driven by GenAI-powered features, justifies a premium multiple despite the current high valuation of shares.
However, BofA Securities downgraded Duolingo from "Buy" to "Neutral" while increasing the price target to $375 from $355. The firm cited less upside potential as shares are now trading at peak valuation. Despite the positive long-term outlook, BofA Securities has tempered its rating.
These are among the recent developments for Duolingo, which is focusing on expanding English learning content and functionality, particularly for Android users. The company's strategies, including the use of GenAI to attract new English learners, are key drivers for its growth.
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