Duolingo (NASDAQ:DUOL) Trading Down 10.1% – Time to Sell?

Duolingo, Inc. (NASDAQ:DUOL) shares were down 10.1% on Monday . The company traded as low as $268.00 and last traded at $265.77. Approximately 329,795 shares were traded during trading, a decline of 60% from the average daily volume of 814,808 shares. The stock had previously closed at $295.56.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on DUOL. Scotiabank initiated coverage on shares of Duolingo in a research note on Thursday, December 5th. They issued a “sector outperform” rating and a $425.00 price objective for the company. DA Davidson upped their price objective on Duolingo from $350.00 to $400.00 and gave the company a “buy” rating in a research note on Friday, February 28th. JMP Securities reaffirmed a “market perform” rating on shares of Duolingo in a research note on Friday, February 14th. Barclays increased their price objective on Duolingo from $295.00 to $330.00 and gave the stock an “equal weight” rating in a research note on Friday, February 28th. Finally, Piper Sandler increased their target price on shares of Duolingo from $351.00 to $390.00 and gave the stock an “overweight” rating in a research report on Friday, February 28th. Seven investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Duolingo has an average rating of “Moderate Buy” and a consensus target price of $375.00.

Duolingo Stock Down 6.3 %

The company has a debt-to-equity ratio of 0.07, a current ratio of 3.09 and a quick ratio of 3.09. The stock has a market cap of $12.19 billion, a price-to-earnings ratio of 151.41 and a beta of 0.92. The firm has a 50 day simple moving average of $354.84 and a two-hundred day simple moving average of $314.76.

Duolingo (NASDAQ:DUOL) last released its quarterly earnings data on Thursday, February 27th. The company reported $0.31 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.19). Duolingo had a return on equity of 11.74% and a net margin of 12.59%. The firm had revenue of $209.55 million for the quarter, compared to the consensus estimate of $205.49 million. As a group, sell-side analysts expect that Duolingo, Inc. will post 2.03 EPS for the current year.

Insider Activity

In other Duolingo news, insider Severin Hacker sold 188,901 shares of the stock in a transaction dated Wednesday, December 11th. The stock was sold at an average price of $339.54, for a total value of $64,139,445.54. Following the completion of the sale, the insider now directly owns 72 shares in the company, valued at $24,446.88. This represents a 99.96 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Ahn Luis Von sold 41,759 shares of the firm’s stock in a transaction dated 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. Insiders sold 313,159 shares of company stock valued at $107,512,184 in the last quarter. Company insiders own 18.30% of the company’s stock.

Institutional Trading of Duolingo

Hedge funds and other institutional investors have recently modified their holdings of the stock. True Wealth Design LLC bought a new position in Duolingo in the third quarter valued at approximately $26,000. First Horizon Advisors Inc. acquired a new position in Duolingo during the third quarter worth $29,000. Quarry LP lifted its stake in Duolingo by 250.0% in the fourth quarter. Quarry LP now owns 91 shares of the company’s stock valued at $30,000 after acquiring an additional 65 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Duolingo in the 4th quarter valued at about $31,000. Finally, Harvest Fund Management Co. Ltd increased its stake in shares of Duolingo by 5,050.0% during the 4th quarter. Harvest Fund Management Co. Ltd now owns 103 shares of the company’s stock worth $33,000 after purchasing an additional 101 shares during the last quarter. Institutional investors and hedge funds own 91.59% of the company’s stock.

Duolingo Company Profile

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.