Duolingo (NASDAQ:DUOL) Reaches New 1-Year Low – Time to Sell?

Shares of Duolingo, Inc. (NASDAQ:DUOL) hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $109.87 and last traded at $108.0310, with a volume of 1597540 shares. The stock had previously closed at $120.70.

Analyst Ratings Changes

Several research analysts recently weighed in on DUOL shares. Evercore set a $330.00 target price on Duolingo and gave the stock an “outperform” rating in a research note on Thursday, November 6th. Bank of America raised Duolingo from a “neutral” rating to a “buy” rating and lowered their price target for the stock from $301.00 to $250.00 in a report on Monday, January 5th. BMO Capital Markets upgraded shares of Duolingo to a “buy” rating in a report on Monday, January 12th. The Goldman Sachs Group decreased their price objective on shares of Duolingo from $425.00 to $250.00 and set a “neutral” rating for the company in a research report on Friday, November 7th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Duolingo from $300.00 to $200.00 and set an “overweight” rating on the stock in a research report on Tuesday, January 20th. Twelve analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Duolingo has a consensus rating of “Hold” and a consensus price target of $300.25.

Duolingo Stock Performance

The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $5.20 billion, a PE ratio of 14.27, a PEG ratio of 0.60 and a beta of 0.86. The firm has a 50 day moving average price of $161.09 and a 200-day moving average price of $241.14.

Insider Activity at Duolingo

In other Duolingo news, insider Severin Hacker sold 10,000 shares of Duolingo stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $172.74, for a total transaction of $1,727,400.00. Following the completion of the sale, the insider directly owned 72 shares in the company, valued at approximately $12,437.28. The trade was a 99.29% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO Matthew Skaruppa sold 3,059 shares of the company’s stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $175.76, for a total transaction of $537,649.84. Following the completion of the sale, the chief financial officer directly owned 37,487 shares in the company, valued at $6,588,715.12. This trade represents a 7.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 33,169 shares of company stock worth $5,826,651 in the last ninety days. 15.67% of the stock is owned by company insiders.

Institutional Investors Weigh In On Duolingo

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Atlantic Union Bankshares Corp purchased a new stake in shares of Duolingo in the third quarter worth about $32,000. AlphaCentric Advisors LLC acquired a new position in Duolingo in the fourth quarter valued at approximately $33,000. Emerald Mutual Fund Advisers Trust acquired a new position in Duolingo in the second quarter valued at approximately $40,000. Farther Finance Advisors LLC boosted its position in Duolingo by 82.2% in the 3rd quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock worth $43,000 after purchasing an additional 60 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Duolingo during the 4th quarter worth approximately $43,000. 91.59% of the stock is owned by institutional investors and hedge funds.

About Duolingo

Duolingo, Inc (NASDAQ:DUOL) is a technology-driven education company that operates a widely used language-learning platform. Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo offers a freemium service featuring bite-sized lessons, gamified exercises and adaptive learning algorithms. The company’s core product is its mobile and web application, which supports instruction in more than 40 languages, ranging from widely spoken tongues such as English and Spanish to lesser-taught options including Irish and Swahili.

In addition to its flagship language courses, Duolingo has expanded its product suite to include the Duolingo English Test, an on-demand, computer-based English proficiency exam designed for academic and professional admissions.