Robert Meese, the Chief Business Officer of Duolingo, Inc. (NASDAQ:DUOL), has recently sold a significant portion of his stock in the company, transactions totaling over $2.4 million. The sales took place on September 17 and 18, according to a recent filing with the Securities and Exchange Commission.
On September 17, Meese sold 4,819 shares at a weighted average price of approximately $240.02, with prices ranging from $240.00 to $240.22. The following day, he sold another 5,000 shares at a price of $255 per share. These transactions were carried out under a Rule 10b5-1 trading plan, which Meese had adopted on March 13, 2024. A 10b5-1 trading plan allows company insiders to sell shares over a predetermined period of time, providing a defense against accusations of trading on nonpublic information.
Following these sales, Meese still holds a substantial amount of Duolingo stock, with direct ownership of 152,053 shares. Additionally, shares held in trusts for the benefit of Meese’s family members were reported, indicating indirect ownership. Specifically, the Eliot Meese Qualified Minor’s Trust and the Isaac Meese Qualified Minor’s Trust each hold 1,800 shares.
Investors often monitor insider sales as they may provide insights into executives’ perspectives on the company’s current valuation and future prospects. In the case of Duolingo, these recent transactions by a high-ranking executive are notable for their size and could be of interest to those following the company’s stock performance.
The language-learning platform, headquartered in Pittsburgh, Pennsylvania, is known for its gamified approach to education and has been expanding its offerings in recent years. As with any insider transactions, investors are recommended to consider them within the broader context of the company’s performance and market conditions.
In other recent news, Duolingo Inc. has been in the spotlight with various analysts maintaining their ratings. KeyBanc has upheld a Sector Weight rating, while both JPMorgan and Piper Sandler have retained an Overweight rating. The ratings reflect the language learning platform’s recent developments, including its upcoming Duocon 2024 event, which is expected to demonstrate new AI, social, and conversational features.
KeyBanc’s rating decision was influenced by the belief that the current stock valuation already reflects these advancements. In contrast, JPMorgan’s positive stance is rooted in Duolingo’s ongoing product cycle and marketing efforts, which are anticipated to significantly boost daily active users and subscriber numbers. Piper Sandler has also expressed confidence in Duolingo, attributing this to the company’s strategic application of AI and expansion of its primary language offerings.
Recent developments for Duolingo include the introduction of a new product, Max, currently available in five courses across 27 countries, with plans for global availability by the end of the year. The full financial impact of Max is expected to materialize by 2025. Duolingo has also reported robust user engagement, with 7 million users maintaining a daily streak for a year or longer, and has raised its bookings growth expectations to over 30% for this year.
In terms of earnings estimates, KeyBanc has increased its projections for Duolingo’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the years 2024 and 2025 by 6% and 11%, respectively, and introduced a projection for the company’s 2026 EBITDA at $360 million. These are among the recent developments for the company.
InvestingPro Insights
As investors digest the news of Robert Meese’s recent stock sales in Duolingo, Inc. (NASDAQ:DUOL), it may be constructive to look at the company’s financial health and market performance through the lens of InvestingPro metrics and tips.
InvestingPro Data indicates that Duolingo holds more cash than debt on its balance sheet, which is a positive sign of financial stability. This could provide some assurance to investors concerned about the implications of insider sales. Additionally, Duolingo’s net income is expected to grow this year, which may reflect optimism about the company’s ability to increase profitability despite any market volatility.
Moreover, the InvestingPro Tips suggest that analysts have recently revised their earnings expectations upwards for the upcoming period. This could signal confidence in Duolingo’s growth trajectory and might counterbalance any negative sentiment arising from insider sales. It is also noteworthy that Duolingo’s gross profit margins have been impressive, which speaks to the efficiency of the company’s business model and its potential to sustain profitability.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available at These tips delve further into the company’s valuation multiples, stock performance, and liquidity, which could be particularly relevant for those evaluating Duolingo’s investment potential in light of recent insider activity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
