Duolingo (NASDAQ:DUOL) Trading Down 5.8% – Here’s What Happened

Shares of Duolingo, Inc. (NASDAQ:DUOL) were down 5.8% during mid-day trading on Tuesday . The company traded as low as $328.58 and last traded at $330.73. Approximately 331,507 shares traded hands during trading, a decline of 36% from the average daily volume of 514,373 shares. The stock had previously closed at $351.13.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on DUOL shares. Barclays increased their price objective on Duolingo from $183.00 to $295.00 and gave the company an “equal weight” rating in a report 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 research note on Thursday, November 7th. Seaport Res Ptn cut Duolingo from a “strong-buy” rating to a “hold” rating in a report on Thursday, November 7th. The Goldman Sachs Group boosted their price objective on Duolingo from $250.00 to $275.00 and gave the company a “neutral” rating in a report on Thursday, November 7th. Finally, JMP Securities lowered Duolingo from an “outperform” rating to a “market perform” rating in a research report on Monday, October 14th. 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, the stock presently has an average rating of “Moderate Buy” and an average price target of $353.90.

Duolingo Price Performance

The business has a 50-day moving average of $337.72 and a 200 day moving average of $270.54. The firm has a market capitalization of $14.72 billion, a P/E ratio of 182.70 and a beta of 0.87. The company has a current ratio of 3.09, a quick ratio of 3.09 and a debt-to-equity ratio of 0.07.

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

Insider Activity at Duolingo

In related news, insider Natalie Glance sold 1,500 shares of the firm’s stock in a transaction on Friday, December 6th. The stock was sold at an average price of $369.33, for a total value of $553,995.00. Following the completion of the transaction, the insider now owns 132,239 shares in the company, valued at $48,839,829.87. This trade represents a 1.12 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Ahn Luis Von sold 41,759 shares of Duolingo stock in a transaction on Thursday, December 12th. The stock was sold at an average price of $340.29, for a total value of $14,210,170.11. The disclosure for this sale can be found here. Over the last three months, insiders have sold 271,124 shares of company stock worth $91,694,238. Corporate insiders own 18.30% of the company’s stock.

Hedge Funds Weigh In On Duolingo

Large investors have recently made changes to their positions in the stock. Dragoneer Investment Group LLC purchased a new stake in shares of Duolingo in the 2nd quarter valued at $204,768,000. Charles Schwab Investment Management Inc. lifted its holdings in Duolingo by 42.2% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 342,280 shares of the company’s stock worth $96,530,000 after buying an additional 101,653 shares in the last quarter. Teachers Retirement System of The State of Kentucky grew its stake in shares of Duolingo by 23.7% in the second quarter. Teachers Retirement System of The State of Kentucky now owns 67,114 shares of the company’s stock worth $14,005,000 after acquiring an additional 12,860 shares in the last quarter. Lisanti Capital Growth LLC raised its stake in shares of Duolingo by 17.8% in the third quarter. Lisanti Capital Growth LLC now owns 11,645 shares of the company’s stock valued at $3,284,000 after acquiring an additional 1,760 shares in the last quarter. Finally, Rockefeller Capital Management L.P. acquired a new position in Duolingo during the 3rd quarter worth $4,350,000. 91.59% of the stock is currently owned by institutional investors and hedge funds.

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.