Duolingo (NASDAQ:DUOL) Stock Rating Reaffirmed as Buy by DA Davidson

Duolingo (NASDAQ:DUOL)‘s stock had its “buy” rating reissued by analysts at DA Davidson in a note issued to investors on Tuesday, Benzinga reports. They currently have a $175.00 target price on the stock. DA Davidson’s price target would suggest a potential upside of 19.82% from the stock’s current price.

A number of other analysts have also recently commented on the stock. Jefferies Financial Group upped their target price on shares of Duolingo from $95.00 to $125.00 and gave the company a “hold” rating in a report on Tuesday, July 14th. Barclays upped their price objective on Duolingo from $110.00 to $115.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 6th. KeyCorp raised Duolingo from a “hold” rating to an “overweight” rating in a report on Tuesday, August 18th. Compass Point assumed coverage on Duolingo in a report on Tuesday, August 18th. They set a “buy” rating for the company. Finally, JPMorgan Chase & Co. raised their price objective on Duolingo from $125.00 to $135.00 and gave the stock a “neutral” rating in a research note on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $124.38.

Duolingo Stock Performance

Duolingo stock traded up $1.78 during mid-day trading on Tuesday, reaching $146.05. 328,668 shares of the stock traded hands, compared to its average volume of 1,852,499. Duolingo has a 12-month low of $87.89 and a 12-month high of $353.00. The business’s 50-day moving average is $143.10 and its 200-day moving average is $122.72. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. The stock has a market capitalization of $6.83 billion, a PE ratio of 17.30, a price-to-earnings-growth ratio of 1.18 and a beta of 1.05.

Duolingo (NASDAQ:DUOL) last announced its earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, topping 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 business had revenue of $298.45 million for the quarter, compared to analysts’ expectations of $295.58 million. During the same period last year, the firm posted $0.91 earnings per share. The business’s revenue for the quarter was up 18.3% on a year-over-year basis. As a group, sell-side analysts predict that Duolingo will post 2.62 EPS for the current fiscal year.

Insider Activity at Duolingo

In other news, insider Robert Meese sold 1,354 shares of Duolingo stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $129.13, for a total transaction of $174,842.02. Following the sale, the insider owned 169,391 shares in the company, valued at $21,873,459.83. This trade represents a 0.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director William B. Gordon sold 10,000 shares of the business’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $145.67, for a total transaction 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 trade represents a 12.75% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 140,694 shares of company stock worth $20,991,914 in the last three months. Corporate insiders own 16.62% of the company’s stock.

Institutional Trading of Duolingo

A number of institutional investors and hedge funds have recently bought and sold shares of DUOL. Capital World Investors boosted its holdings in shares of Duolingo by 0.5% during the 4th 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 last quarter. Geode Capital Management LLC lifted its position in shares of Duolingo by 2.5% in the fourth quarter. Geode Capital Management LLC now owns 811,809 shares of the company’s stock worth $142,501,000 after buying an additional 19,698 shares in the last quarter. Bank of America Corp DE lifted its position in shares of Duolingo by 511.2% in the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock worth $131,325,000 after buying an additional 1,114,315 shares in the last quarter. State of Michigan Retirement System boosted its stake in Duolingo by 112.9% during 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 during the last quarter. Finally, Norges Bank purchased a new position in Duolingo during the 4th 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 technology and gamification. Its flagship Duolingo app offers language-learning courses, practice exercises and other interactive features for learners of languages including Spanish, English, French, German and Japanese, among others.

The company also offers subscription plans, including Super Duolingo and Duolingo Max, which provide additional features and, in the case of Duolingo Max, artificial-intelligence-powered learning tools.