Duolingo general counsel Stephen Chen sells $898,091 in stock

Published 20/02/2025, 01:24
Duolingo general counsel Stephen Chen sells $898,091 in stock

PITTSBURGH—Stephen C. Chen, the General Counsel of Duolingo , Inc. (NASDAQ:DUOL), recently sold a substantial amount of the company’s Class A common stock. The sale comes as the language learning company, now valued at $19.09 billion, trades near its 52-week high of $441.76. According to a filing with the Securities and Exchange Commission, Chen executed two separate transactions on February 18, 2025.

In the first transaction, Chen sold 1,166 shares at a price of $435 each, yielding a total of $507,210. This sale was made under a Rule 10b5-1 trading plan that Chen adopted on May 31, 2024. The second transaction involved the sale of 898 shares at a price of $435.28 per share, amounting to $390,881. This latter sale was automatically executed to cover tax withholding obligations related to the vesting of Restricted Stock Units (RSUs) and the delivery of shares. InvestingPro data shows the company maintains impressive gross profit margins of 73.13% and has achieved a remarkable 140.25% return over the past year.

Following these transactions, Chen holds 34,634 shares of Duolingo stock. According to InvestingPro’s comprehensive analysis, which includes 20+ additional insights and metrics, the company maintains a GREAT financial health score, though current valuations suggest the stock may be trading above its Fair Value. Discover detailed insider trading patterns and valuation metrics with an InvestingPro subscription.

In other recent news, Duolingo Inc. has been the focus of several analyst assessments and product developments. UBS raised its price target for Duolingo shares to $410, maintaining a Buy rating, based on expectations of moderate growth in daily active users and insights into its Max subscription service. Jefferies initiated coverage with a Hold rating and a $370 price target, recognizing the company’s growth but expressing concerns about its ability to expand into new user segments. KeyBanc maintained a Sector Weight rating, citing Duolingo’s effective use of AI and innovative product offerings but noting a decline in gross margins due to AI costs.

Additionally, Duolingo has expanded its AI-driven Video Call feature to Android, adding support for five new languages. This feature allows users to engage in conversation practice with an AI character, enhancing language proficiency. JP Morgan reiterated an Overweight rating, with a $400 price target, highlighting the potential for increased user engagement and revenue from the Video Call feature. The firm also noted significant growth in U.S.-based Chinese learners, linked to the adoption of RedNote. These developments reflect Duolingo’s ongoing efforts to leverage technology for educational advancements and expand its user base.

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