Key Points
- Duolingo insider Natalie Glance sold 2,751 shares for approximately $355,237 under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards. She retained 170,650 shares, and also recently sold 1,539 shares.
- Duolingo shares opened at $146.03 after rising 4.6%, while the company reported quarterly EPS of $0.66 and revenue of $298.45 million, both ahead of analysts’ estimates. Revenue increased 18.3% year over year.
- Analyst sentiment remains mixed: DA Davidson upgraded the stock to “Buy” with a $160 target, but the broader consensus is “Hold” with a $130.50 average target. Risks include slowing bookings growth, higher investment costs and a premium valuation.
Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) General Counsel Stephen Chen sold 1,024 shares of the firm's stock in a transaction that occurred on 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 directly owned 51,841 shares of the company's stock, valued at $6,694,228.33. This represents a 1.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Duolingo Stock Performance
Shares of DUOL stock opened at $146.03 on Thursday. Duolingo, Inc. has a 52-week low of $87.89 and a 52-week high of $355.00. The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.06. The stock has a market cap of $6.83 billion, a PE ratio of 17.30, a price-to-earnings-growth ratio of 1.12 and a beta of 0.87. The business has a 50-day simple moving average of $129.54 and a 200-day simple moving average of $114.26.
Duolingo (NASDAQ:DUOL - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.60 by $0.06. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The firm had revenue of $298.45 million for the quarter, compared to the consensus estimate of $295.58 million. During the same period in the prior year, the firm posted $0.91 earnings per share. The firm's quarterly revenue was up 18.3% compared to the same quarter last year. On average, equities analysts expect that Duolingo, Inc. will post 2.67 EPS for the current year.
Wall Street Analyst Weigh In
Several brokerages recently commented on DUOL. Needham & Company LLC reiterated a "buy" rating and set a $145.00 price target on shares of Duolingo in a research report on Thursday, August 6th. Morgan Stanley raised their price objective on Duolingo from $95.00 to $125.00 and gave the company an "equal weight" rating in a report on Thursday, July 16th. Citigroup raised shares of Duolingo from a "hold" rating to a "buy" rating in a research note on Tuesday. Truist Financial increased their target price on shares of Duolingo from $100.00 to $120.00 and gave the company a "hold" rating in a research report on Thursday, August 6th. Finally, Bank of America downgraded shares of Duolingo from a "neutral" rating to an "underperform" rating and decreased their price target for the stock from $103.00 to $93.00 in a research note on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, sixteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Duolingo presently has an average rating of "Hold" and an average price target of $130.50.
Read Our Latest Report on Duolingo
Institutional Inflows and Outflows
A number of large investors have recently added to or reduced their stakes in the company. Root Financial Partners LLC boosted its position in Duolingo by 194.1% in the 1st quarter. Root Financial Partners LLC now owns 250 shares of the company's stock valued at $25,000 after buying an additional 165 shares during the period. EFG International AG purchased a new stake in shares of Duolingo during the fourth quarter worth $26,000. AlphaCentric Advisors LLC acquired a new stake in shares of Duolingo in the fourth quarter valued at $33,000. Banque Cantonale Vaudoise raised its stake in shares of Duolingo by 51.1% in the first quarter. Banque Cantonale Vaudoise now owns 340 shares of the company's stock valued at $34,000 after acquiring an additional 115 shares in the last quarter. Finally, FNY Investment Advisers LLC purchased a new position in Duolingo in the second quarter valued at $34,000. 91.59% of the stock is currently owned by institutional investors and hedge funds.
Key Headlines Impacting Duolingo
Here are the key news stories impacting Duolingo this week:
- Positive Sentiment: DA Davidson upgraded Duolingo to “Buy” from “Neutral” and raised its price target to $160 from $130. The firm cited a potential “turning point” for the language-learning platform, including continued product improvements and strategic initiatives. The higher target suggests additional upside from recent trading levels. Duolingo Raised to Buy at DA Davidson
- Positive Sentiment: The upgrade triggered a gap higher and helped Duolingo outperform a weaker broader market. Investors are focusing on strong user growth, improving monetization prospects and lower artificial-intelligence costs, which could support margins and cash flow. Why Is Duolingo Stock Surging
- Neutral Sentiment: Several insiders sold shares, including General Counsel Stephen C. Chen, Robert Meese and Natalie Glance. The transactions were primarily made to cover tax withholding obligations on vested equity awards, and some were executed under pre-arranged Rule 10b5-1 plans. Because the sellers retained substantial holdings, the activity is less concerning than discretionary insider selling, but it may still temper sentiment. Duolingo Insider Filing
- Negative Sentiment: Analyst commentary also highlights risks: bookings growth has slowed, costs may rise as Duolingo invests in expansion, and the stock’s premium valuation leaves less room for execution missteps. Investors will likely need evidence that user growth can translate into sustained monetization and earnings growth. Should You Buy Duolingo as Growth Slows and Valuation Stays High
Duolingo Company Profile
(
Get Free Report)
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.
Read More
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
