Duolingo, Inc. (NASDAQ:DUOL) Receives Average Rating of “Hold” from Analysts

Shares of Duolingo, Inc. (NASDAQ:DUOL) have been assigned an average rating of “Hold” from the twenty-two ratings firms that are currently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, nineteen have assigned a hold rating and two have assigned a buy rating to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $170.8235.

Several analysts recently commented on the company. Needham & Company LLC reiterated a “buy” rating and set a $145.00 price target on shares of Duolingo in a research report on Tuesday, May 5th. Zacks Research upgraded Duolingo from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. DA Davidson reaffirmed a “neutral” rating and set a $120.00 target price on shares of Duolingo in a research note on Monday, June 29th. Wells Fargo & Company set a $82.00 target price on shares of Duolingo and gave the stock an “underweight” rating in a report on Tuesday. Finally, KeyCorp reiterated a “sector weight” rating on shares of Duolingo in a research report on Thursday, June 4th.

Insiders Place Their Bets

In other news, General Counsel Stephen C. Chen sold 1,977 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $113.61, for a total transaction of $224,606.97. Following the transaction, the general counsel directly owned 52,807 shares in the company, valued at $5,999,403.27. The trade was a 3.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Meese sold 1,420 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $112.16, for a total transaction of $159,267.20. Following the transaction, the insider directly owned 170,745 shares in the company, valued at approximately $19,150,759.20. The trade was a 0.82% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 9,506 shares of company stock valued at $1,073,864 in the last ninety days. 16.62% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Baillie Gifford & Co. raised its stake in shares of Duolingo by 71.9% in the 4th quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company’s stock valued at $853,184,000 after acquiring an additional 2,033,611 shares during the period. Capital World Investors boosted its position in shares of Duolingo by 0.5% during the 4th quarter. Capital World Investors now owns 2,241,378 shares of the company’s stock worth $393,362,000 after purchasing an additional 11,140 shares during the period. Bank of America Corp DE increased its holdings in Duolingo by 511.2% in the 1st quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock valued at $131,325,000 after purchasing an additional 1,114,315 shares during the last quarter. State of Michigan Retirement System increased its holdings in Duolingo by 112.9% in the 1st quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company’s stock valued at $117,624,000 after purchasing an additional 632,807 shares during the last quarter. Finally, State Street Corp raised its position in Duolingo by 0.5% in the second quarter. State Street Corp now owns 1,164,387 shares of the company’s stock valued at $477,422,000 after purchasing an additional 6,109 shares during the period. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Duolingo Stock Up 1.7%

DUOL opened at $131.95 on Friday. The company has a market cap of $6.15 billion, a PE ratio of 15.18, a price-to-earnings-growth ratio of 1.01 and a beta of 0.88. Duolingo has a twelve month low of $87.89 and a twelve month high of $468.00. The company has a 50-day moving average price of $115.35 and a 200 day moving average price of $121.82. The company has a quick ratio of 2.62, a current ratio of 2.62 and a debt-to-equity ratio of 0.07.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings data on Monday, May 4th. The company reported $0.89 EPS for the quarter, topping the consensus estimate of $0.79 by $0.10. Duolingo had a return on equity of 14.07% and a net margin of 38.44%.The company had revenue of $291.97 million during the quarter, compared to analyst estimates of $288.60 million. During the same period in the previous year, the business earned $0.72 EPS. Duolingo’s quarterly revenue was up 26.5% on a year-over-year basis. Sell-side analysts expect that Duolingo will post 2.76 earnings per share for the current fiscal year.

About Duolingo

Duolingo, Inc (NASDAQ:DUOL) is a technology-driven education company that operates a widely used language-learning platform. Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo offers a freemium service featuring bite-sized lessons, gamified exercises and adaptive learning algorithms. The company’s core product is its mobile and web application, which supports instruction in more than 40 languages, ranging from widely spoken tongues such as English and Spanish to lesser-taught options including Irish and Swahili.

In addition to its flagship language courses, Duolingo has expanded its product suite to include the Duolingo English Test, an on-demand, computer-based English proficiency exam designed for academic and professional admissions.