Bank of America Downgrades Duolingo (NASDAQ:DUOL) to Neutral

Duolingo (NASDAQ:DUOL) was downgraded by equities research analysts at Bank of America from a “buy” rating to a “neutral” rating in a research note issued on Wednesday,Finviz reports. They presently have a $375.00 target price on the stock, up from their prior target price of $355.00. Bank of America‘s price objective would indicate a potential upside of 3.64% from the company’s current price.

Several other research firms have also recently commented on DUOL. Scotiabank started coverage on shares of Duolingo in a research note on Thursday, December 5th. They issued a “sector outperform” rating and a $425.00 target price for the company. Barclays raised their target price on shares of Duolingo from $183.00 to $295.00 and gave the stock an “equal weight” rating in a research note on Thursday, November 7th. Needham & Company LLC raised their target price on shares of Duolingo from $310.00 to $370.00 and gave the stock a “buy” rating in a research note on Thursday, November 7th. DA Davidson increased their price target on shares of Duolingo from $250.00 to $350.00 and gave the company a “buy” rating in a report on Thursday, November 7th. Finally, Piper Sandler increased their price target on shares of Duolingo from $271.00 to $351.00 and gave the company an “overweight” rating in a report on Thursday, November 7th. Six equities research analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Duolingo has a consensus rating of “Moderate Buy” and an average price target of $348.40.

Duolingo Stock Up 0.3 %

Shares of NASDAQ:DUOL opened at $361.83 on Wednesday. The stock has a market cap of $15.91 billion, a P/E ratio of 197.72 and a beta of 0.85. The firm has a fifty day moving average price of $313.97 and a 200 day moving average price of $242.95. The company has a debt-to-equity ratio of 0.07, a current ratio of 3.09 and a quick ratio of 3.09. Duolingo has a 1-year low of $145.05 and a 1-year high of $378.48.

Duolingo (NASDAQ:DUOL) last issued its quarterly earnings results on Wednesday, November 6th. The company reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.14. Duolingo had a net margin of 12.59% and a return on equity of 11.74%. The firm had revenue of $192.59 million during the quarter, compared to analysts’ expectations of $189.19 million. During the same quarter in the prior year, the business earned $0.06 EPS. Duolingo’s quarterly revenue was up 39.9% compared to the same quarter last year. Sell-side analysts predict that Duolingo will post 2.02 EPS for the current year.

Insider Buying and Selling at Duolingo

In other news, insider Natalie Glance sold 1,500 shares of the stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $313.36, for a total transaction of $470,040.00. Following the transaction, the insider now directly owns 136,760 shares in the company, valued at $42,855,113.60. This represents a 1.08 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Robert Meese sold 4,819 shares of the business’s stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $240.02, for a total transaction of $1,156,656.38. Following the completion of the sale, the insider now owns 157,053 shares of the company’s stock, valued at approximately $37,695,861.06. The trade was a 2.98 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 19,319 shares of company stock worth $5,377,256. Insiders own 18.30% of the company’s stock.

Hedge Funds Weigh In On Duolingo

A number of hedge funds have recently made changes to their positions in DUOL. True Wealth Design LLC acquired a new position in shares of Duolingo in the 3rd quarter valued at $26,000. First Horizon Advisors Inc. acquired a new position in shares of Duolingo in the 3rd quarter valued at $29,000. Larson Financial Group LLC acquired a new position in shares of Duolingo in the 2nd quarter valued at $31,000. Blue Trust Inc. acquired a new position in shares of Duolingo in the 2nd quarter valued at $32,000. Finally, Mark Sheptoff Financial Planning LLC acquired a new position in shares of Duolingo in the 2nd quarter valued at $36,000. Institutional investors and hedge funds own 91.59% of the company’s stock.

About Duolingo

Duolingo, Inc operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam.