Duolingo (NASDAQ:DUOL) Announces Quarterly Earnings Results

Duolingo (NASDAQ:DUOL) released its earnings results on Monday. The company reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.10, FiscalAI reports. Duolingo had a return on equity of 14.88% and a net margin of 39.91%.The company had revenue of $291.97 million for the quarter, compared to analysts’ expectations of $288.60 million.

Duolingo Stock Down 0.9%

Shares of Duolingo stock traded down $1.02 during trading on Monday, hitting $110.23. 3,989,107 shares of the stock traded hands, compared to its average volume of 2,457,170. The stock has a market cap of $5.18 billion, a P/E ratio of 12.94, a PEG ratio of 0.78 and a beta of 0.90. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.61 and a current ratio of 2.61. Duolingo has a twelve month low of $87.89 and a twelve month high of $544.93. The company has a fifty day moving average price of $100.45 and a two-hundred day moving average price of $157.37.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on DUOL. Barclays lowered their target price on Duolingo from $230.00 to $110.00 and set an “equal weight” rating on the stock in a research note on Monday, March 2nd. Citigroup reaffirmed a “neutral” rating and set a $101.00 target price (down from $270.00) on shares of Duolingo in a research note on Friday, February 27th. Evercore reaffirmed a “hold” rating and set a $114.00 target price on shares of Duolingo in a research note on Friday, February 27th. Morgan Stanley reaffirmed an “equal weight” rating and set a $100.00 target price (down from $245.00) on shares of Duolingo in a research note on Friday, February 27th. Finally, UBS Group set a $245.00 target price on Duolingo in a research note on Monday, January 5th. Three investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $196.78.

Insider Buying and Selling at Duolingo

In other news, CFO Matthew Skaruppa sold 3,986 shares of Duolingo stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $113.52, for a total transaction of $452,490.72. Following the completion of the sale, the chief financial officer directly owned 31,631 shares in the company, valued at $3,590,751.12. The trade was a 11.19% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Robert Meese sold 1,000 shares of Duolingo stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $110.06, for a total value of $110,060.00. Following the sale, the insider owned 122,636 shares of the company’s stock, valued at approximately $13,497,318.16. This represents a 0.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 14,939 shares of company stock worth $1,676,291 over the last quarter. Insiders own 16.62% of the company’s stock.

Institutional Investors Weigh In On Duolingo

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. EFG International AG acquired a new stake in Duolingo in the 4th quarter worth approximately $26,000. AlphaCentric Advisors LLC acquired a new stake in Duolingo in the 4th quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd acquired a new stake in Duolingo in the 4th quarter worth approximately $43,000. Advisors Asset Management Inc. lifted its holdings in Duolingo by 152.5% in the 4th quarter. Advisors Asset Management Inc. now owns 298 shares of the company’s stock worth $52,000 after purchasing an additional 180 shares during the last quarter. Finally, Banque Cantonale Vaudoise acquired a new stake in Duolingo in the 3rd quarter worth approximately $70,000. 91.59% of the stock is currently owned by institutional investors and hedge funds.

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.