Duolingo (NASDAQ:DUOL) Shares Down 3.1% – Here’s Why

Duolingo, Inc. (NASDAQ:DUOL) dropped 3.1% during trading on Friday . The stock traded as low as $324.83 and last traded at $324.83. Approximately 34,817 shares changed hands during trading, a decline of 95% from the average daily volume of 684,435 shares. The stock had previously closed at $335.22.

Analysts Set New Price Targets

Several research firms have recently weighed in on DUOL. JMP Securities downgraded shares of Duolingo from an “outperform” rating to a “market perform” rating in a research note on Monday, October 14th. Barclays lifted their price target on Duolingo from $183.00 to $295.00 and gave the company an “equal weight” rating in a research report on Thursday, November 7th. DA Davidson increased their price objective on Duolingo from $250.00 to $350.00 and gave the stock a “buy” rating in a report on Thursday, November 7th. Needham & Company LLC upped their price target on Duolingo from $370.00 to $385.00 and gave the company a “buy” rating in a research report on Thursday. Finally, UBS Group lifted their target price on shares of Duolingo from $355.00 to $408.00 and gave the company a “buy” rating in a research report on Thursday, November 14th. Six investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $353.90.

Duolingo Stock Performance

The company has a market cap of $15.04 billion, a P/E ratio of 186.86 and a beta of 0.85. The business has a 50 day moving average price of $321.84 and a two-hundred day moving average price of $249.57. The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.09 and a current ratio of 3.09.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings results on Wednesday, November 6th. The company reported $0.49 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.14. The company had revenue of $192.59 million during the quarter, compared to analyst estimates of $189.19 million. Duolingo had a net margin of 12.59% and a return on equity of 11.74%. The firm’s revenue was up 39.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.06 EPS. On average, sell-side analysts anticipate that Duolingo, Inc. will post 2.02 earnings per share for the current year.

Insider Activity at Duolingo

In other Duolingo news, insider Robert Meese sold 5,000 shares of the company’s stock in a transaction on Wednesday, September 25th. The shares were sold at an average price of $285.04, for a total value of $1,425,200.00. Following the completion of the transaction, the insider now directly owns 142,053 shares in the company, valued at approximately $40,490,787.12. This represents a 3.40 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Ahn Luis Von sold 41,759 shares of the business’s stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $340.29, for a total transaction of $14,210,170.11. The disclosure for this sale can be found here. Insiders have sold a total of 240,160 shares of company stock worth $81,220,216 in the last 90 days. Company insiders own 18.30% of the company’s stock.

Hedge Funds Weigh In On Duolingo

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Lord Abbett & CO. LLC lifted its position in Duolingo by 63.6% during the 3rd quarter. Lord Abbett & CO. LLC now owns 197,670 shares of the company’s stock valued at $55,747,000 after acquiring an additional 76,875 shares during the period. Tidal Investments LLC increased its stake in shares of Duolingo by 8.0% during the third quarter. Tidal Investments LLC now owns 1,561 shares of the company’s stock valued at $440,000 after purchasing an additional 115 shares in the last quarter. Sanctuary Advisors LLC purchased a new position in shares of Duolingo during the third quarter valued at approximately $199,000. Geode Capital Management LLC grew its stake in shares of Duolingo by 2.5% in the 3rd quarter. Geode Capital Management LLC now owns 672,800 shares of the company’s stock worth $189,790,000 after buying an additional 16,481 shares during the last quarter. Finally, Barclays PLC raised its stake in Duolingo by 90.9% during the third quarter. Barclays PLC now owns 42,613 shares of the company’s stock valued at $12,018,000 after buying an additional 20,289 shares during the last quarter. Hedge funds and other institutional investors own 91.59% of the company’s stock.

About Duolingo

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.