Duolingo’s CTO Severin Hacker sells shares worth $4.34 million

Published 21/02/2025, 22:36
Duolingo’s CTO Severin Hacker sells shares worth $4.34 million

Severin Hacker, the Chief Technology Officer and Co-Founder of Duolingo , Inc. (NASDAQ:DUOL), recently executed a series of stock transactions, according to a filing with the Securities and Exchange Commission. On February 19, Hacker sold shares valued at approximately $4.34 million. The transaction comes as Duolingo’s stock has delivered an impressive 142% return over the past year, with the company now commanding a market capitalization of $16.93 billion.

The sales involved multiple transactions of Duolingo’s Class A Common Stock, with prices ranging from $430.37 to $438.98 per share. This activity was conducted under a pre-established Rule 10b5-1 trading plan. According to InvestingPro data, the company maintains strong fundamentals with a robust 73% gross profit margin and 42% revenue growth in the last twelve months.

Following these transactions, Hacker’s direct ownership of Duolingo shares decreased, but he still retains a significant stake in the company. The transactions highlight ongoing insider activity at Duolingo, a leader in language-learning software. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 18 additional key insights available for subscribers.

In other recent news, Duolingo Inc. reported several significant developments. UBS analyst Chris Kuntarich raised the price target for Duolingo shares to $410, maintaining a Buy rating, while Jefferies initiated coverage with a Hold rating and a price target of $370. Jefferies highlighted Duolingo’s consistent growth but expressed concerns about its future expansion, particularly with its new Max product. Meanwhile, KeyBanc Capital Markets reiterated a Sector Weight rating, emphasizing Duolingo’s strong position in the market and its effective use of artificial intelligence for product innovation.

Duolingo recently expanded its AI-driven Video Call feature to Android devices, adding support for five new languages. This feature, available to Duolingo Max subscribers, aims to simulate real-world conversations and enhance language proficiency. JP Morgan analysts maintained an Overweight rating with a $400 price target, noting the potential increase in paid subscribers for the Max product and the significant revenue growth expected from this expansion.

Additionally, Duolingo’s recent growth among U.S.-based Chinese learners was noted, with a 216% year-over-year increase. This growth is partly attributed to the adoption of RedNote amid discussions of a potential U.S. TikTok ban. The company’s efforts to leverage technology for educational purposes continue to position it as a leader in the mobile learning space, as reflected by its top-grossing app status in the Education category on major app stores.

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