Key Points
- Duolingo Director William Gordon sold 10,000 shares at an average price of $145.67, generating approximately $1.46 million. The Rule 10b5-1 transaction reduced his stake by 12.75% to 68,415 shares.
- Duolingo’s latest quarterly results exceeded expectations, with EPS of $0.66 versus the $0.60 consensus and revenue of $298.45 million, up 18.3% year over year.
- Analyst sentiment remains mixed: the stock carries an average “Hold” rating and a $124.38 price target, while shares recently opened at $145.16. Institutional investors own 91.59% of the company.
Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) Director William Gordon sold 10,000 shares of the business's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $145.67, for a total transaction of $1,456,700.00. Following the sale, the director owned 68,415 shares in the company, valued at approximately $9,966,013.05. This trade represents a 12.75% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Duolingo Stock Up 4.3%
NASDAQ:DUOL opened at $145.16 on Friday. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. The firm's 50-day moving average price is $137.40 and its 200-day moving average price is $117.84. The company has a market capitalization of $6.79 billion, a PE ratio of 17.20, a P/E/G ratio of 1.14 and a beta of 0.89. Duolingo, Inc. has a 1-year low of $87.89 and a 1-year high of $353.00.
Duolingo (NASDAQ:DUOL - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, beating 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 company had revenue of $298.45 million during the quarter, compared to analysts' expectations of $295.58 million. During the same period last year, the company posted $0.91 EPS. Duolingo's revenue was up 18.3% on a year-over-year basis. On average, equities analysts predict that Duolingo, Inc. will post 2.62 EPS for the current fiscal year.
Analysts Set New Price Targets
A number of brokerages have recently commented on DUOL. Wells Fargo & Company began coverage on Duolingo in a research report on Tuesday, August 18th. They issued an "overweight" rating on the stock. JPMorgan Chase & Co. raised their price objective on Duolingo from $125.00 to $135.00 and gave the company a "neutral" rating in a research report on Thursday, August 27th. Craig Hallum lowered Duolingo to a "hold" rating in a research report on Tuesday, August 18th. Evercore set a $105.00 price objective on Duolingo in a research note on Thursday, August 6th. Finally, Argus reissued a "hold" rating and issued a $146.00 target price on shares of Duolingo in a report on Tuesday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $124.38.
Read Our Latest Report on Duolingo
Institutional Inflows and Outflows
Several large investors have recently bought and sold shares of DUOL. Root Financial Partners LLC grew its holdings in shares of Duolingo by 194.1% during the first 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 last quarter. EFG International AG purchased a new position in Duolingo in the 4th quarter worth approximately $26,000. AlphaCentric Advisors LLC purchased a new position in Duolingo in the 4th quarter worth approximately $33,000. Banque Cantonale Vaudoise lifted its position in Duolingo by 51.1% in the 1st 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 bought a new position in Duolingo in the 2nd quarter valued at approximately $34,000. 91.59% of the stock is owned by hedge funds and other institutional investors.
More Duolingo News
Here are the key news stories impacting Duolingo this week:
- Positive Sentiment: Duolingo received substantial publicity after Apple named its new foldable iPhone “iPhone Duo.” Duolingo’s playful social-media response, including exchanges with Samsung, generated widespread coverage and meme activity. The free exposure could strengthen brand awareness and user engagement, although it has no immediate quantified financial impact. iPhone Duo Memes: The Duolingo Owl Is Hooting Mad That Apple Stole His Name
- Positive Sentiment: The company is also extending its brand into consumer products through a collaboration involving Hermès-related language and merchandise, potentially supporting broader marketing reach and monetization opportunities. Can’t pronounce Hermès? Duolingo has something you can wear
- Neutral Sentiment: Reported short interest was listed at zero shares as of September 10, unchanged from a zero-share figure on August 26. Because the data appears inconsistent with normal market reporting, it provides little useful insight into near-term trading pressure.
- Neutral Sentiment: Director William B. Gordon sold 10,000 shares for approximately $1.46 million, reducing his ownership by 12.75%. The sale was made under a pre-arranged Rule 10b5-1 plan, which lessens its significance as a discretionary bearish signal. SEC insider transaction filing
- Negative Sentiment: A widely circulated account from a CEO claiming ChatGPT taught him Spanish more effectively than Duolingo highlights continuing competitive concerns from generative-AI tools. While anecdotal, such commentary could pressure investor views of Duolingo’s long-term differentiation. CEO says ChatGPT taught him more Spanish than Duolingo
About Duolingo
(
Get Free Report)
Duolingo, Inc develops digital learning products designed to make education accessible through mobile devices and the web. Its primary product is the Duolingo language-learning platform, which offers courses in numerous languages through interactive, game-like lessons, practice exercises and personalized learning features.
The company also provides the Duolingo English Test, an online English-proficiency assessment used by educational institutions and other organizations. In addition, Duolingo has expanded beyond language learning with products such as Duolingo Math and Duolingo Music, while offering premium subscription features through plans including Super Duolingo and Duolingo Max.
Duolingo serves users internationally, with its applications and online services available across a broad range of geographies.
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