Duolingo, Inc. (NASDAQ:DUOL) Chief Financial Officer Matthew Skaruppa recently sold a significant portion of his company stock, according to a new SEC filing. The transactions, which took place on June 3, 2024, involved the sale of Duolingo shares at prices ranging from $192.74 to $200.22, totaling over $1.57 million.
The sale was executed under a Rule 10b5-1 trading plan, which was adopted on June 9, 2023. Such plans allow company insiders to sell shares over a predetermined period of time, to avoid accusations of trading on insider information. The specific transactions included multiple sales at varying prices, providing a weighted average sale price for each batch of shares sold.
Skaruppa's transactions included the sale of 1800 shares at an average price of $192.74, 1344 shares at $193.89, 100 shares at $194.80, 592 shares at $196.45, 1176 shares at $197.44, 771 shares at $198.39, 1300 shares at $199.35, and 917 shares at $200.22. Following these sales, Skaruppa still owns a total of 86,709 shares of Duolingo's Class A Common Stock.
In addition to the sales, the CFO also acquired 8000 shares through the exercise of stock options priced at $14.42 per share, amounting to a total transaction value of $115,360. The shares from the options are fully vested and exercisable, as noted in the filing's footnotes.
Duolingo, headquartered in Pittsburgh, Pennsylvania, is known for its language-learning platform. The company has been a popular choice for consumers looking to learn new languages through its gamified approach to education. As of the filing, the company's stock is publicly traded on the NASDAQ exchange under the ticker symbol DUOL.
Investors and analysts often monitor insider transactions as they can provide insights into an executive's view of the company's future prospects. However, it is also common for executives to sell shares for personal financial planning, unrelated to their outlook on the company.
The transactions are detailed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of company insiders.
In other recent news, Duolingo Inc. has been garnering attention with its robust growth and strategic initiatives. Analysts from JMP Securities have upgraded the company to Market Outperform, setting a new price target at $260. The upgrade reflects confidence in Duolingo's growth catalysts, including the broader rollout of its Max feature, improvements to the subscription tiers, and the launch of a conversational experience.
Financial projections for Duolingo are bullish, with significant revenue growth and increasing EBITDA margins leading up to 2026. However, the company's guidance for the second quarter of 2024 indicates EBITDA margins below consensus at the midpoint, attributed to increased R&D hiring and marketing spend.
Meanwhile, DLocal Limited reported a disappointing first-quarter financial report, with adjusted earnings per share (EPS) of $0.06, significantly lower than the analyst consensus of $0.12. Revenue for the quarter also fell short of expectations at $184.4 million, compared to the anticipated $190.1 million.
On a more positive note, Duolingo Inc. reported a strong first quarter in 2024, with significant growth in revenue, bookings, and daily active users (DAUs). The language learning platform not only achieved record profitability but also raised its full-year guidance for both bookings and revenue growth. These are recent developments in the companies' performance and strategic plans.
InvestingPro Insights
Amidst the recent insider transactions at Duolingo, Inc. (NASDAQ:DUOL), investors may find it useful to consider the company's financial standing and market performance. Duolingo's market capitalization stands at a robust $8.45 billion, reflecting significant investor confidence in the company's value and growth potential. The language-learning platform's revenue has also shown impressive growth, with an increase of 44.33% over the last twelve months as of Q1 2024, indicating a strong demand for its educational offerings.
An InvestingPro Tip highlights that Duolingo holds more cash than debt on its balance sheet, providing the company with financial flexibility and stability. Furthermore, analysts have revised their earnings upwards for the upcoming period, suggesting optimism about the company's future profitability. Duolingo's gross profit margin stands at an impressive 73.28%, underscoring the efficiency of its business model in generating income from its revenues.
However, the stock has experienced a decline over the last month, with a 19.72% drop in price total return. This could present a potential opportunity for investors to consider the stock if they believe in the company's long-term growth narrative. Duolingo's shares are currently trading at a high earnings multiple, with a P/E ratio of 180.17, which may be indicative of high growth expectations from investors.
For those interested in further analysis and additional InvestingPro Tips, Duolingo has a total of 15 tips available on its InvestingPro profile at https://www.investing.com/pro/DUOL. These tips provide deeper insights into the company's financial health and market expectations. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.