Duolingo (NASDAQ:DUOL) Director William Gordon Sells 10,000 Shares of Stock

Duolingo, Inc. (NASDAQ:DUOL) Director William Gordon sold 10,000 shares of the business’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $145.67, for a total value of $1,456,700.00. Following the completion of the transaction, the director directly owned 68,415 shares in the company, valued at $9,966,013.05. This represents a 12.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Duolingo Stock Up 4.3%

Shares of Duolingo stock opened at $145.16 on Friday. The stock’s 50-day moving average is $137.40 and its 200 day moving average is $117.84. Duolingo, Inc. has a one year low of $87.89 and a one year high of $353.00. The firm has a market cap of $6.79 billion, a price-to-earnings ratio of 17.20, a PEG ratio of 1.14 and a beta of 0.89. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72.

Duolingo (NASDAQ:DUOL) last issued its earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, topping analysts’ consensus estimates of $0.60 by $0.06. The business had revenue of $298.45 million during the quarter, compared to the consensus estimate of $295.58 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The firm’s revenue for the quarter was up 18.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.91 earnings per share. Equities research analysts anticipate that Duolingo, Inc. will post 2.62 EPS for the current year.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Barclays raised their price objective on shares of Duolingo from $110.00 to $115.00 and gave the company an “equal weight” rating in a research note on Thursday, August 6th. Morgan Stanley upped their price target on Duolingo from $95.00 to $125.00 and gave the stock an “equal weight” rating in a report on Thursday, July 16th. Citigroup raised Duolingo from a “hold” rating to a “buy” rating in a research report on Tuesday, August 18th. DA Davidson raised their price objective on Duolingo from $160.00 to $175.00 and gave the company a “buy” rating in a research note on Tuesday, September 1st. Finally, Jefferies Financial Group lifted their price objective on shares of Duolingo from $95.00 to $125.00 and gave the stock a “hold” rating in a report on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $124.38.

Duolingo News Roundup

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo received substantial publicity after Apple named its new foldable iPhone “iPhone Duo.” Duolingo’s playful social-media response, including exchanges with Samsung, generated widespread coverage and meme activity. The free exposure could strengthen brand awareness and user engagement, although it has no immediate quantified financial impact. iPhone Duo Memes: The Duolingo Owl Is Hooting Mad That Apple Stole His Name
• Positive Sentiment: The company is also extending its brand into consumer products through a collaboration involving Hermès-related language and merchandise, potentially supporting broader marketing reach and monetization opportunities. Can’t pronounce Hermès? Duolingo has something you can wear
• Neutral Sentiment: Reported short interest was listed at zero shares as of September 10, unchanged from a zero-share figure on August 26. Because the data appears inconsistent with normal market reporting, it provides little useful insight into near-term trading pressure.
• Neutral Sentiment: Director William B. Gordon sold 10,000 shares for approximately $1.46 million, reducing his ownership by 12.75%. The sale was made under a pre-arranged Rule 10b5-1 plan, which lessens its significance as a discretionary bearish signal. SEC insider transaction filing
• Negative Sentiment: A widely circulated account from a CEO claiming ChatGPT taught him Spanish more effectively than Duolingo highlights continuing competitive concerns from generative-AI tools. While anecdotal, such commentary could pressure investor views of Duolingo’s long-term differentiation. CEO says ChatGPT taught him more Spanish than Duolingo

Hedge Funds Weigh In On Duolingo

A number of hedge funds and other institutional investors have recently modified their holdings of DUOL. Meiji Yasuda Asset Management Co Ltd. lifted its holdings in Duolingo by 3.5% in the second quarter. Meiji Yasuda Asset Management Co Ltd. now owns 940 shares of the company’s stock worth $385,000 after buying an additional 32 shares during the period. Evergreen Capital Management LLC grew its holdings in shares of Duolingo by 5.0% during the 2nd quarter. Evergreen Capital Management LLC now owns 818 shares of the company’s stock worth $335,000 after acquiring an additional 39 shares during the period. Public Employees Retirement System of Ohio raised its position in shares of Duolingo by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 11,740 shares of the company’s stock worth $3,778,000 after acquiring an additional 73 shares in the last quarter. Northwestern Mutual Investment Management Company LLC raised its position in shares of Duolingo by 1.2% in the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 8,953 shares of the company’s stock worth $1,571,000 after acquiring an additional 105 shares in the last quarter. Finally, Banque Cantonale Vaudoise lifted its stake in shares of Duolingo by 51.1% in the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company’s stock valued at $34,000 after purchasing an additional 115 shares during the period. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Duolingo Company Profile

Duolingo, Inc develops digital learning products designed to make education accessible through mobile devices and the web. Its primary product is the Duolingo language-learning platform, which offers courses in numerous languages through interactive, game-like lessons, practice exercises and personalized learning features.

The company also provides the Duolingo English Test, an online English-proficiency assessment used by educational institutions and other organizations. In addition, Duolingo has expanded beyond language learning with products such as Duolingo Math and Duolingo Music, while offering premium subscription features through plans including Super Duolingo and Duolingo Max.

Duolingo serves users internationally, with its applications and online services available across a broad range of geographies.