Severin Hacker, the Chief Technology Officer and Co-Founder of Duolingo , Inc. (NASDAQ:DUOL), recently sold a substantial portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Hacker sold shares of Duolingo's Class A Common Stock on January 21, 2025. The sales, conducted under a prearranged trading plan, amounted to a total of $3,339,535. The transaction comes as Duolingo, currently valued at $14.77 billion, maintains strong financial health with a "GREAT" rating according to InvestingPro metrics.
The shares were sold at prices ranging from $327.06 to $347.15 per share. Following these transactions, Hacker retains a significant number of shares in the company. The sales were part of a Rule 10b5-1 trading plan adopted by Hacker in September 2024, which allows company insiders to sell a predetermined number of shares at a predetermined time.
In addition to the stock sales, Hacker also exercised stock options, acquiring 10,000 shares of Class A Common Stock at a price of $14.42 per share. This exercise, however, was not part of the sales transaction.
Duolingo, a leader in language-learning software, continues to be a significant player in the tech industry, and these transactions reflect ongoing activity by its executives.
In other recent news, Duolingo Inc. has seen a significant surge in its shares and continued growth in its user base. Analysts at JP Morgan (NYSE:JPM) have maintained an Overweight rating on the stock, attributing the company's success to the expansion of its Video Call feature to Android devices and the addition of new languages. The updated Video Call feature, which includes new animations, transcripts, and the capacity for the AI character Lily to initiate calls, is believed to enhance user experience and teaching effectiveness.
Duolingo's recent growth in U.S.-based Chinese learners is linked to the adoption of RedNote, contributing to a substantial share of the company's monthly active users in the U.S. In addition, Needham has maintained a Buy rating on Duolingo, recognizing the company's new growth phase driven by GenAI-powered features. However, BofA Securities has downgraded Duolingo from "Buy" to "Neutral," citing less upside potential due to the current high valuation of its shares.
Finally, Duolingo reported a significant increase in daily active users and raised its full-year guidance during its Third Quarter 2024 Earnings Call. The company's new AI-powered video call feature, part of the Duolingo Max subscription tier, has reached about half of its users, with plans for further expansion. These are the recent developments that highlight Duolingo's robust growth prospects and the potential impact of its innovative GenAI technology.
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