Duolingo’s (DUOL) Buy Rating Reaffirmed at DA Davidson

Duolingo (NASDAQ:DUOL)‘s stock had its “buy” rating reiterated by analysts at DA Davidson in a research report issued to clients and investors on Tuesday, Benzinga reports. They currently have a $175.00 price objective on the stock. DA Davidson’s price target would suggest a potential upside of 23.62% from the company’s previous close.

Several other equities research analysts have also issued reports on DUOL. Wells Fargo & Company began coverage on shares of Duolingo in a report on Tuesday, August 18th. They issued an “overweight” rating on the stock. Scotiabank set a $120.00 target price on Duolingo in a report on Thursday, August 6th. Wedbush lifted their price objective on Duolingo from $139.00 to $150.00 and gave the company a “neutral” rating in a report on Thursday, August 20th. Wall Street Zen raised shares of Duolingo from a “sell” rating to a “hold” rating in a report on Sunday, August 16th. Finally, Barclays boosted their price target on shares of Duolingo from $110.00 to $115.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Duolingo currently has a consensus rating of “Hold” and a consensus target price of $124.38.

Duolingo Stock Performance

Shares of NASDAQ DUOL traded up $7.26 during trading hours on Tuesday, hitting $141.56. 767,498 shares of the company’s stock were exchanged, compared to its average volume of 1,875,243. The company’s 50-day moving average price is $141.33 and its 200-day moving average price is $121.44. Duolingo has a 1-year low of $87.89 and a 1-year high of $353.00. The stock has a market capitalization of $6.62 billion, a price-to-earnings ratio of 16.76, a PEG ratio of 1.18 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 announced its quarterly earnings data 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. The business had revenue of $298.45 million for the quarter, compared to the consensus estimate of $295.58 million. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. Duolingo’s quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter last year, the company posted $0.91 earnings per share. On average, sell-side analysts expect that Duolingo will post 2.62 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, General Counsel Stephen Chen sold 8,072 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $149.33, for a total value of $1,205,391.76. Following the sale, the general counsel directly owned 43,769 shares in the company, valued at $6,536,024.77. The trade was a 15.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William Gordon sold 10,000 shares of the stock in a transaction on 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 sale, the director owned 68,415 shares of the company’s stock, valued at $9,966,013.05. This trade represents a 12.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 140,694 shares of company stock worth $20,991,914. 16.62% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Root Financial Partners LLC boosted its stake in Duolingo by 194.1% in the 1st quarter. Root Financial Partners LLC now owns 250 shares of the company’s stock worth $25,000 after purchasing an additional 165 shares during the period. FNY Investment Advisers LLC purchased a new position in shares of Duolingo during the 2nd quarter valued at $34,000. Banque Cantonale Vaudoise grew its holdings in shares of Duolingo by 51.1% during the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company’s stock valued at $34,000 after acquiring an additional 115 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in shares of Duolingo in the fourth quarter worth $73,000. Finally, Osbon Capital Management LLC purchased a new stake in shares of Duolingo during the fourth quarter worth $84,000. 91.59% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: DA Davidson reaffirmed its Buy rating and set a $175 price target, implying approximately 24% upside from the referenced price. The endorsement provides near-term support for the stock after its recent decline. DA Davidson Buy rating reaffirmed
• Positive Sentiment: A bullish investment analysis argued that Duolingo’s proprietary user data, extensive A/B-testing infrastructure and AI-powered personalization create a durable competitive advantage. The company’s AI tools could also reduce content costs and help it expand into additional education categories. Duolingo Is Much Cheaper And Defensible Than Most Investors Think
• Positive Sentiment: Duolingo identified Indonesia as one of its fastest-growing markets, highlighting continued international expansion and potential user-growth opportunities. Duolingo sees Indonesia among fastest-growing markets
• Neutral Sentiment: Duolingo is receiving increased attention from Zacks users, but the report primarily reviews factors investors should consider rather than announcing a new operating or financial development. Duolingo Is a Trending Stock
• Negative Sentiment: CEO and co-founder Luis von Ahn sold 46,682 shares for approximately $7.0 million, reducing his direct holdings by 50%. The transactions were conducted under a pre-arranged Rule 10b5-1 plan, which reduces the significance as a discretionary bearish signal, but the size of the sale may weigh on sentiment. Duolingo CEO Luis van Ahn sells shares

About Duolingo

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.