Duolingo (NASDAQ:DUOL) Shares Up 4.6% – Here’s What Happened

Duolingo, Inc. (NASDAQ:DUOL) rose 4.6% during mid-day trading on Tuesday. The stock traded as high as $137.23 and last traded at $140.4880. Approximately 72,763 shares were traded during trading, a decline of 96% from the average session volume of 1,871,453 shares. The stock had previously closed at $134.30.

Analysts Set New Price Targets

DUOL has been the topic of a number of recent research reports. Jefferies Financial Group boosted their price objective on Duolingo from $95.00 to $125.00 and gave the stock a “hold” rating in a research note on Tuesday, July 14th. JPMorgan Chase & Co. increased their price target on shares of Duolingo from $125.00 to $135.00 and gave the stock a “neutral” rating in a research report on Thursday, August 27th. Wells Fargo & Company began coverage on shares of Duolingo in a report on Tuesday, August 18th. They issued an “overweight” rating for the company. Compass Point began coverage on Duolingo in a report on Tuesday, August 18th. They set a “buy” rating for the company. Finally, Susquehanna began coverage on shares of Duolingo in a research note on Tuesday, August 18th. They issued a “positive” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $124.38.

Duolingo Price Performance

The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.72 and a current ratio of 2.72. The stock has a 50 day moving average of $141.33 and a two-hundred day moving average of $121.44. The firm has a market capitalization of $6.56 billion, a P/E ratio of 16.63, a P/E/G ratio of 1.18 and a beta of 0.89.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.06. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The company had revenue of $298.45 million during the quarter, compared to analysts’ expectations of $295.58 million. During the same period in the prior year, the business earned $0.91 earnings per share. Duolingo’s revenue for the quarter was up 18.3% compared to the same quarter last year. Sell-side analysts predict that Duolingo, Inc. will post 2.62 earnings per share for the current fiscal year.

Insider Transactions at Duolingo

In related news, insider Natalie Glance sold 2,751 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $129.13, for a total value of $355,236.63. Following the transaction, the insider directly owned 170,650 shares in the company, valued at $22,036,034.50. This represents a 1.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at 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, General Counsel Stephen C. Chen sold 8,072 shares of the business’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $149.33, for a total value of $1,205,391.76. Following the transaction, the general counsel owned 43,769 shares of the company’s stock, valued at $6,536,024.77. The trade was a 15.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 140,694 shares of company stock worth $20,991,914. 16.62% of the stock is owned by company insiders.

Institutional Trading of Duolingo

A number of institutional investors have recently modified their holdings of the company. Capital World Investors increased its holdings in Duolingo by 0.5% in the fourth quarter. Capital World Investors now owns 2,241,378 shares of the company’s stock valued at $393,362,000 after purchasing an additional 11,140 shares during the period. Geode Capital Management LLC lifted its stake in Duolingo by 2.5% in the fourth quarter. Geode Capital Management LLC now owns 811,809 shares of the company’s stock valued at $142,501,000 after buying an additional 19,698 shares during the period. Bank of America Corp DE boosted its stake in Duolingo by 511.2% during the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock worth $131,325,000 after acquiring an additional 1,114,315 shares in the last quarter. State of Michigan Retirement System boosted its position in shares of Duolingo by 112.9% during the 1st quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company’s stock worth $117,624,000 after purchasing an additional 632,807 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 currently owned by institutional investors.

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.