Duolingo (NASDAQ:DUOL) Trading Down 4.2% – What’s Next?

Duolingo, Inc. (NASDAQ:DUOL)’s share price dropped 4.2% during mid-day trading on Monday . The company traded as low as $485.53 and last traded at $491.49. Approximately 157,158 shares were traded during trading, a decline of 78% from the average daily volume of 710,754 shares. The stock had previously closed at $512.95.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on DUOL shares. JPMorgan Chase & Co. lifted their price objective on Duolingo from $500.00 to $580.00 and gave the stock an “overweight” rating in a report on Wednesday, June 4th. Barclays raised their price target on Duolingo from $330.00 to $375.00 and gave the company an “equal weight” rating in a research note on Friday, May 2nd. The Goldman Sachs Group raised their price objective on Duolingo from $340.00 to $403.00 and gave the company a “neutral” rating in a report on Monday, May 5th. Morgan Stanley raised their target price on Duolingo from $435.00 to $515.00 and gave the stock an “overweight” rating in a research report on Monday, May 5th. Finally, UBS Group restated an “overweight” rating on shares of Duolingo in a research report on Thursday, May 22nd. Seven equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $441.29.

Duolingo Price Performance

The company has a quick ratio of 3.09, a current ratio of 3.09 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $22.96 billion, a P/E ratio of 275.73 and a beta of 1.00. The business’s 50 day simple moving average is $430.90 and its two-hundred day simple moving average is $374.37.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings results on Thursday, May 1st. The company reported $0.72 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.52 by $0.20. The company had revenue of $230.74 million for the quarter, compared to analysts’ expectations of $223.15 million. Duolingo had a net margin of 12.59% and a return on equity of 11.74%. The company’s revenue was up 37.6% on a year-over-year basis. As a group, sell-side analysts forecast that Duolingo, Inc. will post 2.03 earnings per share for the current fiscal year.

Insider Activity

In other Duolingo news, insider Robert Meese sold 5,351 shares of Duolingo stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $320.02, for a total transaction of $1,712,427.02. Following the transaction, the insider now directly owns 133,805 shares in the company, valued at approximately $42,820,276.10. The trade was a 3.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Severin Hacker sold 10,000 shares of Duolingo stock in a transaction that occurred on Wednesday, March 19th. The stock was sold at an average price of $298.25, for a total value of $2,982,500.00. Following the completion of the transaction, the insider now directly owns 72 shares in the company, valued at approximately $21,474. This represents a 99.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 84,833 shares of company stock worth $29,006,319 over the last ninety days. Corporate insiders own 15.67% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rise Advisors LLC boosted its holdings in shares of Duolingo by 43.6% in the first quarter. Rise Advisors LLC now owns 79 shares of the company’s stock valued at $25,000 after buying an additional 24 shares during the period. Contravisory Investment Management Inc. acquired a new stake in Duolingo in the 1st quarter valued at $25,000. Quarry LP lifted its position in shares of Duolingo by 250.0% during the 4th quarter. Quarry LP now owns 91 shares of the company’s stock worth $30,000 after buying an additional 65 shares in the last quarter. Summit Securities Group LLC purchased a new stake in Duolingo in the 1st quarter worth about $28,000. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Duolingo in the fourth quarter worth $31,000. Institutional investors and hedge funds own 91.59% of the company’s stock.

Duolingo Company Profile

Duolingo, Inc operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam.