Duolingo, Inc. (NASDAQ:DUOL) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Duolingo has a consensus “Hold” rating among 24 analysts: 14 holds, eight buys, one strong buy, and one sell. The average 12-month price target is $124.38.
• The company exceeded quarterly expectations, reporting EPS of $0.66 versus the $0.60 consensus and revenue of $298.45 million, up 18.3% year over year.
• DUOL opened at $153.92, with a $7.20 billion market capitalization and a 12-month trading range of $87.89 to $353.00. Institutional investors own 91.59% of the shares, while insiders sold shares primarily to cover tax obligations.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) has received a consensus rating of "Hold" from the twenty-four analysts that are currently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, fourteen have assigned a hold recommendation, eight have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $124.3750.

A number of equities research analysts have weighed in on the stock. Barclays upped their price objective on shares of Duolingo from $110.00 to $115.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Wells Fargo & Company began coverage on shares of Duolingo in a report on Tuesday, August 18th. They set an "overweight" rating for the company. Wall Street Zen raised Duolingo from a "sell" rating to a "hold" rating in a research report on Sunday, August 16th. Compass Point started coverage on Duolingo in a research report on Tuesday, August 18th. They set a "buy" rating for the company. Finally, Needham & Company LLC reiterated a "buy" rating and set a $145.00 price objective on shares of Duolingo in a research note on Thursday, August 6th.

Duolingo Price Performance

DUOL opened at $153.92 on Wednesday. The company has a current ratio of 2.72, a quick ratio of 2.72 and a debt-to-equity ratio of 0.06. The company has a market cap of $7.20 billion, a price-to-earnings ratio of 18.24, a price-to-earnings-growth ratio of 1.24 and a beta of 0.89. The stock has a fifty day simple moving average of $138.63 and a two-hundred day simple moving average of $118.70. Duolingo has a 12-month low of $87.89 and a 12-month high of $353.00.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, topping analysts' consensus estimates of $0.60 by $0.06. The firm had revenue of $298.45 million for 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 company's revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.91 EPS. Research analysts predict that Duolingo will post 2.62 earnings per share for the current fiscal year.

Insider Activity

In other Duolingo news, insider Robert Meese sold 1,354 shares of Duolingo stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $129.13, for a total value of $174,842.02. Following the completion of the transaction, the insider directly owned 169,391 shares of the company's stock, valued at approximately $21,873,459.83. The trade was a 0.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Natalie Glance sold 2,751 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $129.13, for a total transaction of $355,236.63. Following the sale, the insider owned 170,650 shares in the company, valued at approximately $22,036,034.50. The trade was a 1.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 24,740 shares of company stock worth $3,536,474. 16.62% of the stock is currently owned by company insiders.

Institutional Trading of Duolingo

Several institutional investors have recently added to or reduced their stakes in DUOL. Banque Cantonale Vaudoise increased its holdings in Duolingo by 51.1% during the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company's stock worth $34,000 after purchasing an additional 115 shares during the period. Generali Investments Towarzystwo Funduszy Inwestycyjnych raised its position in Duolingo by 42.9% during the 1st quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 500 shares of the company's stock valued at $49,000 after purchasing an additional 150 shares in the last quarter. Root Financial Partners LLC lifted its holdings in shares of Duolingo by 194.1% in the 1st quarter. Root Financial Partners LLC now owns 250 shares of the company's stock worth $25,000 after buying an additional 165 shares during the period. Rathbones Group PLC lifted its holdings in shares of Duolingo by 2.9% in the 1st quarter. Rathbones Group PLC now owns 7,460 shares of the company's stock worth $735,000 after buying an additional 211 shares during the period. Finally, Oregon Public Employees Retirement Fund grew its position in shares of Duolingo by 3.1% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 8,224 shares of the company's stock worth $811,000 after buying an additional 244 shares in the last quarter. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

About Duolingo

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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