Duolingo (NASDAQ:DUOL) Earns Neutral Rating from DA Davidson

Duolingo (NASDAQ:DUOL)‘s stock had its “neutral” rating reissued by stock analysts at DA Davidson in a report issued on Wednesday,Benzinga reports. They currently have a $120.00 price target on the stock. DA Davidson’s price objective points to a potential downside of 7.39% from the stock’s current price.

DUOL has been the topic of several other reports. Truist Financial cut shares of Duolingo from a “buy” rating to a “hold” rating and set a $100.00 price target on the stock. in a report on Friday, February 27th. Morgan Stanley lowered their target price on shares of Duolingo from $100.00 to $95.00 and set an “equal weight” rating on the stock in a report on Tuesday, May 5th. Bank of America reaffirmed a “neutral” rating and set a $100.00 target price on shares of Duolingo in a report on Friday, February 27th. UBS Group reaffirmed a “neutral” rating on shares of Duolingo in a report on Wednesday. Finally, KeyCorp reaffirmed a “sector weight” rating on shares of Duolingo in a report on Thursday, June 4th. Two analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Duolingo presently has a consensus rating of “Hold” and a consensus target price of $197.61.

Duolingo Stock Performance

Duolingo stock traded up $1.50 during trading hours on Wednesday, hitting $129.57. The company had a trading volume of 553,940 shares, compared to its average volume of 2,255,975. The firm has a market cap of $6.04 billion, a PE ratio of 14.95, a PEG ratio of 0.96 and a beta of 0.89. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.62 and a quick ratio of 2.62. Duolingo has a one year low of $87.89 and a one year high of $483.03. The firm has a 50-day moving average of $107.33 and a 200 day moving average of $128.98.

Duolingo (NASDAQ:DUOL) last released its quarterly earnings results on Monday, May 4th. The company reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.10. The firm had revenue of $291.97 million for the quarter, compared to analysts’ expectations of $288.60 million. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The business’s revenue was up 26.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.72 EPS. On average, sell-side analysts expect that Duolingo will post 2.84 earnings per share for the current year.

Insider Activity at Duolingo

In related news, General Counsel Stephen C. Chen sold 1,977 shares of Duolingo stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $113.61, for a total value of $224,606.97. Following the transaction, the general counsel directly owned 52,807 shares of the company’s stock, valued at $5,999,403.27. This trade represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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 Duolingo stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $112.16, for a total transaction of $159,267.20. Following the completion of the transaction, the insider directly owned 170,745 shares in the company, valued at $19,150,759.20. This trade represents a 0.82% decrease in their ownership of the stock. 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 over the last three months. 16.62% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in DUOL. Baillie Gifford & Co. boosted its position in Duolingo by 71.9% in the fourth quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company’s stock valued at $853,184,000 after buying an additional 2,033,611 shares in the last quarter. Bank of America Corp DE boosted its position in Duolingo by 511.2% in the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock valued at $131,325,000 after buying an additional 1,114,315 shares in the last quarter. State of Michigan Retirement System boosted its position in Duolingo by 112.9% in the first quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company’s stock valued at $117,624,000 after buying an additional 632,807 shares in the last quarter. FIL Ltd boosted its position in Duolingo by 1,715,575.9% in the fourth quarter. FIL Ltd now owns 497,546 shares of the company’s stock valued at $87,319,000 after buying an additional 497,517 shares in the last quarter. Finally, Norges Bank acquired a new stake in Duolingo in the fourth quarter valued at approximately $86,159,000. 91.59% of the stock is owned by institutional investors.

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.