Robert Meese, Chief Business Officer at Duolingo, Inc., recently filed documents with the Securities and Exchange Commission detailing several transactions involving the company's Class A Common Stock. These filings, dated May 19, 2026, report activities that took place on May 15, 2026.
The reported activity includes both a disposition of existing shares and a significant acquisition through employee compensation mechanisms. Specifically, Mr. Meese sold 1,420 shares of Duolingo Class A Common Stock. This sale was executed at a price of $112.16 per share, resulting in total proceeds approximating $159,267. The purpose cited for this disposal was to satisfy tax withholding obligations that arose from the vesting and subsequent delivery of Restricted Stock Units (RSUs).
Concurrently, Mr. Meese reported acquiring a much larger volume of stock via RSU vesting. He acquired 19,529 shares of Class A Common Stock. These units were initially vested as RSUs, which grant the reporting person the right to receive one share of Duolingo’s Class A Common Stock for each unit upon vesting. At the time of this acquisition, the value was recorded at $112.06 per share, totaling approximately $2,188,419.
The filing provided specific details regarding the future schedule of these compensation units, noting that one-sixteenth (1/16th) of these RSUs are scheduled to vest on each quarterly anniversary of May 15, 2026. Following both the sale and the acquisition transactions, Mr. Meese's direct holdings were recorded at 170,745 shares of Duolingo Class A Common Stock.
Beyond his personal accounts, the documentation also disclosed indirect ownership structures for Mr. Meese. These included holdings totaling 1,800 shares through the Eliot Meese Qualified Minor’s Trust and an additional 1,800 shares held via the Isaac Meese Qualified Minor’s Trust.
Market Context and Valuation Analysis
The stock transaction activity is viewed against a backdrop of significant market movement for Duolingo. The company's shares have experienced a notable decline of 78% over the past year, with the current trading price reported at $114.15.
Despite this downturn, certain analyses suggest that the stock may currently be undervalued. According to an InvestingPro analysis referenced in the report, Duolingo maintains strong fundamental metrics. Notably, the company reports a gross profit margin of 72.67%. This valuation insight is available on the platform, alongside detailed research and proprietary Pro Research Reports covering Duolingo and over 1,400 other US equities.
Recent Corporate Performance Indicators
In separate company news, Duolingo Inc. recently released its first-quarter earnings for 2026. These results reportedly exceeded what was anticipated by Wall Street analysts. The company posted an earnings per share (EPS) of $0.89, which surpassed the forecast of $0.76. Furthermore, the company's revenue also outperformed projections, reaching $292 million compared to the expected $288.98 million.
Earlier reporting indicated that Duolingo had announced first-quarter revenue of $283 million. This figure was noted as exceeding its guidance midpoint of $275 million, while EBITDA reached $83 million, surpassing the guided amount of $77 million.
Varied Analyst Reactions and Price Target Adjustments
The recent corporate developments have prompted varied responses from financial analysts, leading to adjustments in price targets. Specifically, BofA Securities raised its target for the stock to $103 from a previous level of $100, while maintaining a Neutral rating. Similarly, DA Davidson increased its target to $90 from $85, also keeping a neutral stance on the company.
In contrast, Evercore ISI issued a reduction in its price target, lowering it to $97 from $114. This adjustment was attributed by the firm to what they characterized as a soft second-quarter bookings outlook for the company. These differing analyses highlight varied perceptions of Duolingo’s near-term trajectory and future operational performance.