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

Key Points

• Analysts have a consensus “Hold” rating on Duolingo, with 16 holds, eight buys, one strong buy and one sell among 26 analysts. The average 12-month price target is $131.19.
• Duolingo’s latest quarterly results exceeded expectations, reporting adjusted EPS of $0.66 versus $0.60 expected and revenue of $298.45 million, up 18.3% year over year.
• The stock opened at $146.13, well below its 52-week high of $355.00. Insiders have sold 6,668 shares worth approximately $874,000 over the past 90 days, while institutional investors own 91.59% of the company.

Shares of Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) have been assigned an average recommendation of "Hold" from the twenty-six analysts that are covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, sixteen have issued a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $131.1875.

Several equities research analysts recently weighed in on DUOL shares. Bank of America lowered Duolingo from a "neutral" rating to an "underperform" rating and decreased their price objective for the stock from $103.00 to $93.00 in a report on Tuesday, August 4th. Susquehanna assumed coverage on shares of Duolingo in a report on Tuesday. They set a "positive" rating on the stock. UBS Group increased their target price on shares of Duolingo from $125.00 to $150.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. KeyCorp upgraded shares of Duolingo from a "hold" rating to an "overweight" rating in a research note on Tuesday. Finally, Zacks Research raised shares of Duolingo from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th.

Duolingo Trading Down 0.6%

NASDAQ:DUOL opened at $146.13 on Friday. Duolingo has a 52 week low of $87.89 and a 52 week high of $355.00. The firm has a 50-day moving average price of $130.48 and a two-hundred day moving average price of $114.57. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.72 and a current ratio of 2.72. The firm has a market cap of $6.84 billion, a price-to-earnings ratio of 17.31, a price-to-earnings-growth ratio of 1.20 and a beta of 0.87.

Duolingo (NASDAQ:DUOL - Get Free Report) last announced 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. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The firm had revenue of $298.45 million for the quarter, compared to the consensus estimate of $295.58 million. During the same quarter in the previous year, the business earned $0.91 EPS. The company's revenue was up 18.3% compared to the same quarter last year. On average, equities analysts expect that Duolingo will post 2.64 earnings per share for the current fiscal year.

Insider Activity at Duolingo

In other news, insider Robert Meese sold 1,354 shares of the firm's stock in a transaction on Monday, August 17th. The stock was 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 $21,873,459.83. This trade represents a 0.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 Duolingo stock in a transaction on Monday, August 17th. The shares were sold at an average price of $129.13, for a total value of $355,236.63. Following the completion of the transaction, the insider owned 170,650 shares of the company's stock, valued at approximately $22,036,034.50. This trade represents a 1.59% decrease in their ownership of the stock. 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 ninety days, insiders sold 6,668 shares of company stock worth $874,382. Corporate insiders own 16.62% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in DUOL. Root Financial Partners LLC boosted its holdings 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 purchasing an additional 165 shares during the period. EFG International AG purchased a new stake in Duolingo in the fourth quarter valued at approximately $26,000. AlphaCentric Advisors LLC bought a new stake in Duolingo during the fourth quarter valued at approximately $33,000. Banque Cantonale Vaudoise lifted its position in Duolingo by 51.1% during the first quarter. Banque Cantonale Vaudoise now owns 340 shares of the company's stock valued at $34,000 after purchasing an additional 115 shares during the last quarter. Finally, FNY Investment Advisers LLC purchased a new position in shares of Duolingo in the 2nd quarter worth about $34,000. Institutional investors own 91.59% of the company's stock.

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.

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