Duolingo (NASDAQ:DUOL) Trading Down 6.4% – What’s Next?

Duolingo, Inc. (NASDAQ:DUOL)’s stock price traded down 6.4% during mid-day trading on Thursday . The company traded as low as $122.07 and last traded at $123.6450. 440,675 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 2,235,934 shares. The stock had previously closed at $132.15.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on DUOL shares. Needham & Company LLC restated a “buy” rating and set a $145.00 price target on shares of Duolingo in a research note on Tuesday, May 5th. Barclays dropped their price objective on shares of Duolingo from $230.00 to $110.00 and set an “equal weight” rating on the stock in a research note on Monday, March 2nd. Evercore set a $97.00 price objective on shares of Duolingo in a research report on Tuesday, May 5th. JPMorgan Chase & Co. raised their target price on shares of Duolingo from $92.00 to $94.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 5th. Finally, Truist Financial downgraded shares of Duolingo from a “buy” rating to a “hold” rating and set a $100.00 target price on the stock. in a report on Friday, February 27th. Two investment analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Duolingo has an average rating of “Hold” and a consensus price target of $175.41.

Duolingo Stock Up 1.3%

The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.62 and a current ratio of 2.62. The firm has a fifty day moving average price of $112.45 and a 200 day moving average price of $125.88. The firm has a market capitalization of $5.66 billion, a price-to-earnings ratio of 13.98, a PEG ratio of 0.93 and a beta of 0.89.

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

Insider Activity at Duolingo

In other Duolingo news, General Counsel Stephen C. Chen sold 1,977 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $113.61, for a total value of $224,606.97. Following the completion of the transaction, the general counsel directly owned 52,807 shares of the company’s stock, valued at approximately $5,999,403.27. This trade represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 Natalie Glance sold 3,360 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $113.59, for a total transaction of $381,662.40. Following the completion of the transaction, the insider directly owned 173,401 shares of the company’s stock, valued at approximately $19,696,619.59. This trade represents a 1.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 9,506 shares of company stock worth $1,073,864 over the last 90 days. Company insiders own 16.62% of the company’s stock.

Hedge Funds Weigh In On Duolingo

Hedge funds have recently bought and sold shares of the company. Root Financial Partners LLC grew its holdings in Duolingo by 194.1% in the first quarter. Root Financial Partners LLC now owns 250 shares of the company’s stock valued at $25,000 after purchasing an additional 165 shares during the last quarter. EFG International AG acquired a new stake in Duolingo in the 4th quarter valued at about $26,000. AlphaCentric Advisors LLC acquired a new stake in Duolingo in the 4th quarter valued at about $33,000. Banque Cantonale Vaudoise increased its holdings in Duolingo by 51.1% during the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company’s stock valued at $34,000 after acquiring an additional 115 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd purchased a new position in Duolingo during the 4th quarter valued at about $43,000. 91.59% of the stock is owned by hedge funds and other institutional investors.

Duolingo Company Profile

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.