Duolingo, Inc. (NASDAQ:DUOL) Chief Financial Officer Matthew Skaruppa has engaged in transactions involving the company's Class A common stock, as recent filings with the Securities and Exchange Commission reveal. On May 15, Skaruppa disposed of 2,469 shares of Duolingo stock, a move automatically executed to satisfy tax withholding obligations related to the vesting of Restricted Stock Units (RSUs).
The RSUs, which are set to vest quarterly starting May 15, 2024, led to the automatic sale of shares at a price of $0.0 to cover the associated tax burden. This transaction did not yield any proceeds for the CFO, as the shares were sold solely for tax purposes.
In addition to the disposed shares, Skaruppa also received 27,353 RSUs on the same date. These units grant the right to receive one share of Duolingo's Class A Common Stock per RSU upon vesting. The total value of these acquired RSUs is also marked at $0.0, reflecting their nature as non-purchased equity awards that will provide value upon future vesting events.
Following these transactions, Skaruppa's direct ownership in Duolingo stands at 89,407 shares of Class A common stock, indicating a significant stake in the company's success. The disclosed transactions offer a glimpse into the compensation and tax-related stock activities of Duolingo's executives, providing investors with insights into insider actions within the company.
InvestingPro Insights
As Duolingo's CFO Matthew Skaruppa manages his equity compensation, investors might find it useful to consider the broader financial landscape of Duolingo, Inc. (NASDAQ:DUOL) through key metrics and insights provided by InvestingPro. With a market capitalization of $7.59 billion and a high gross profit margin of 73.28% for the last twelve months as of Q1 2024, Duolingo demonstrates a strong ability to retain revenue after the cost of goods sold is deducted.
InvestingPro Tips highlight that Duolingo holds more cash than debt on its balance sheet and has a net income expected to grow this year. These factors, combined with analysts anticipating sales growth in the current year, suggest a promising financial outlook for the company. Furthermore, a PEG ratio of 0.95 reflects a potentially favorable balance between the company’s price-to-earnings ratio and earnings growth rate, indicating Duolingo may be reasonably valued in terms of its growth potential.
Despite a recent hit to the stock price, with a 1-week total return of -11.61%, Duolingo's fundamentals, including impressive revenue growth of 44.33% in the last twelve months as of Q1 2024, provide a compelling narrative for potential investors. For those interested in a deeper analysis, there are additional InvestingPro Tips available, including insights on earnings revisions, valuation multiples, and profitability forecasts. To explore these further, visit https://www.investing.com/pro/DUOL and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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