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

Duolingo (NASDAQ:DUOL)‘s stock had its “buy” rating reissued by equities researchers at DA Davidson in a research note issued to investors on Monday, Benzinga reports. They presently have a $175.00 price objective on the stock. DA Davidson’s price target suggests a potential upside of 14.26% from the company’s current price.

DUOL has been the topic of a number of other research reports. Compass Point began coverage on Duolingo in a research note on Tuesday, August 18th. They issued a “buy” rating on the stock. Needham & Company LLC reiterated a “buy” rating and set a $145.00 price target on shares of Duolingo in a report on Thursday, August 6th. Wedbush boosted their price objective on Duolingo from $139.00 to $150.00 and gave the stock a “neutral” rating in a research report on Thursday, August 20th. Evercore set a $105.00 price objective on Duolingo in a research note on Thursday, August 6th. Finally, Morgan Stanley raised their target price on Duolingo from $95.00 to $125.00 and gave the company an “equal weight” rating in a research report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Duolingo currently has an average rating of “Hold” and an average target price of $124.38.

Duolingo Stock Up 6.6%

Shares of DUOL stock traded up $9.47 on Monday, hitting $153.16. The stock had a trading volume of 715,993 shares, compared to its average volume of 1,920,250. 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 business has a 50 day moving average of $137.76 and a 200 day moving average of $118.11. Duolingo has a 12-month low of $87.89 and a 12-month high of $353.00. The stock has a market cap of $7.17 billion, a price-to-earnings ratio of 18.15, a price-to-earnings-growth ratio of 1.18 and a beta of 0.89.

Duolingo (NASDAQ:DUOL) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.06. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The business had revenue of $298.45 million for the quarter, compared to analysts’ expectations of $295.58 million. During the same period in the previous year, the company earned $0.91 earnings per share. The firm’s revenue for the quarter was up 18.3% compared to the same quarter last year. As a group, analysts expect that Duolingo will post 2.62 EPS for the current year.

Insider Transactions at Duolingo

In other news, insider Natalie Glance sold 1,539 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $137.80, for a total transaction of $212,074.20. Following the completion of the transaction, the insider owned 169,111 shares in the company, valued at approximately $23,303,495.80. This represents a 0.90% decrease in their position. The transaction was disclosed in a legal filing 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Stephen C. Chen sold 1,024 shares of the stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $129.13, for a total transaction of $132,229.12. Following the transaction, the general counsel owned 51,841 shares of the company’s stock, valued at $6,694,228.33. This represents a 1.94% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 16,668 shares of company stock valued at $2,331,082. Corporate insiders own 16.62% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. California State Teachers Retirement System grew its position in shares of Duolingo by 12,171.5% in the second quarter. California State Teachers Retirement System now owns 5,119,655 shares of the company’s stock valued at $588,863,000 after purchasing an additional 5,077,935 shares in the last quarter. Bank of America Corp DE grew its holdings in Duolingo by 511.2% during the 1st quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock valued at $131,325,000 after buying an additional 1,114,315 shares in the last quarter. State of Michigan Retirement System grew its holdings in Duolingo by 112.9% during the 1st 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 in the last quarter. FIL Ltd increased its position in shares of Duolingo by 1,715,575.9% during the fourth quarter. FIL Ltd now owns 497,546 shares of the company’s stock valued at $87,319,000 after buying an additional 497,517 shares during the period. Finally, Norges Bank bought a new position in shares of Duolingo in the fourth quarter valued at approximately $86,159,000. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

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.