Key Points
- CEO Luis von Ahn sold 28,292 Duolingo shares at an average price of $150.22, generating approximately $4.25 million and reducing his direct stake by 55.12% to 23,040 shares. The sale was conducted under a pre-arranged Rule 10b5-1 trading plan.
- Duolingo recently exceeded quarterly expectations, reporting $0.66 in EPS versus a $0.60 consensus estimate and revenue of $298.45 million, up 18.3% year over year.
- The stock opened at $141.90, while analysts maintained a consensus “Hold” rating with a $124.38 price target. Valuation concerns and additional insider selling remain potential pressure points despite institutional investors owning 91.59% of shares.
Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) CEO Luis van Ahn sold 28,292 shares of the company's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $150.22, for a total transaction of $4,250,024.24. Following the completion of the sale, the chief executive officer directly owned 23,040 shares in the company, valued at approximately $3,461,068.80. The trade was a 55.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Duolingo Trading Down 3.5%
Shares of Duolingo stock opened at $141.90 on Friday. The stock has a market capitalization of $6.64 billion, a P/E ratio of 16.81, a price-to-earnings-growth ratio of 1.21 and a beta of 0.89. 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 company has a 50-day simple moving average of $139.73 and a 200 day simple moving average of $119.40. Duolingo, Inc. has a 12-month low of $87.89 and a 12-month high of $353.00.
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, beating the consensus estimate of $0.60 by $0.06. The firm had revenue of $298.45 million during the quarter, compared to the consensus estimate of $295.58 million. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The firm's quarterly revenue was up 18.3% on a year-over-year basis. During the same period last year, the firm posted $0.91 EPS. Research analysts expect that Duolingo, Inc. will post 2.62 earnings per share for the current fiscal year.
Duolingo News Summary
Here are the key news stories impacting Duolingo this week:
- Positive Sentiment: Duolingo launched a global crossover with Supercell’s Brawl Stars, featuring the Duo owl in a promotional boss battle. The campaign could expand brand awareness, user engagement and customer acquisition, although its direct financial impact is not yet clear. Brawl Stars' and Duolingo's Iconic Mascots Face Off in New Collaboration
- Neutral Sentiment: Analysts compared Duolingo with Ingram Micro and Coursera on valuation and investment appeal. These reports keep attention on whether Duolingo’s growth prospects justify its price relative to other technology and online-learning companies, but do not provide a decisive new catalyst. INGM or DUOL: Which Is the Better Value Stock Right Now? Analyzing Duolingo and Coursera
- Neutral Sentiment: Coverage of Duolingo’s AI upgrade and Super subscription changes suggests the initiatives could improve product capabilities and monetization. However, investors remain focused on execution, user adoption and whether the changes translate into sustained earnings growth. Duolingo’s AI Upgrade and Insider Sale
- Negative Sentiment: Several reports characterized DUOL as appearing expensive as AI-related product changes reshape the investment outlook. Valuation concerns can pressure the stock when investors demand clearer evidence that new offerings will accelerate growth. Duolingo Stock Seems Pricey as AI Product Changes Draw Focus
- Negative Sentiment: Director Stephen Chen sold 8,072 Duolingo shares. While an insider sale does not necessarily indicate deteriorating fundamentals, it adds near-term selling pressure and can reinforce investor concerns when the stock is already facing valuation scrutiny. Stephen Chen Sells 8,072 Shares of Duolingo Stock
Analysts Set New Price Targets
DUOL has been the topic of several recent analyst reports. Scotiabank set a $120.00 target price on Duolingo in a report on Thursday, August 6th. Citigroup raised Duolingo from a "hold" rating to a "buy" rating in a report on Tuesday, August 18th. Jefferies Financial Group lifted their price objective on Duolingo from $95.00 to $125.00 and gave the company a "hold" rating in a research report on Tuesday, July 14th. Compass Point started coverage on Duolingo in a research note on Tuesday, August 18th. They issued a "buy" rating on the stock. Finally, Argus reissued a "hold" rating and issued a $146.00 price objective on shares of Duolingo in a research note on Tuesday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $124.38.
Get Our Latest Research Report on DUOL
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently made changes to their positions in DUOL. Capital World Investors increased its holdings in Duolingo by 0.5% in the fourth quarter. Capital World Investors now owns 2,241,378 shares of the company's stock valued at $393,362,000 after purchasing an additional 11,140 shares during the last quarter. Bank of America Corp DE boosted its holdings in Duolingo by 511.2% during the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company's stock worth $131,325,000 after buying an additional 1,114,315 shares during the last quarter. State of Michigan Retirement System grew its position in shares of Duolingo by 112.9% during the 1st quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company's stock worth $117,624,000 after buying an additional 632,807 shares during the period. Geode Capital Management LLC grew its position in shares of Duolingo by 2.5% during the 4th quarter. Geode Capital Management LLC now owns 811,809 shares of the company's stock worth $142,501,000 after buying an additional 19,698 shares during the period. Finally, Renaissance Technologies LLC increased its stake in shares of Duolingo by 91.3% in the 1st quarter. Renaissance Technologies LLC now owns 603,806 shares of the company's stock valued at $59,517,000 after acquiring an additional 288,252 shares during the last quarter. 91.59% of the stock is currently owned by institutional investors.
Duolingo Company Profile
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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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