Duolingo (NASDAQ:DUOL) General Counsel Sells 1,024 Shares of Stock

Key Points

• Duolingo General Counsel Stephen Chen sold 1,024 shares at an average price of $129.13, totaling $132,229.12. The sale covered tax withholding obligations from vested equity awards and reduced his holdings by 1.94%.
• Duolingo reported quarterly EPS of $0.66, beating estimates by $0.06, while revenue of $298.45 million rose 18.3% year over year. Shares traded at $146.03, with a $6.83 billion market capitalization.
• Analyst sentiment remains mixed: D.A. Davidson upgraded the stock to “buy” with a $160 target and UBS raised its target to $150, but the broader consensus rating is “Hold” with a $130.50 price target. Institutional investors own 91.59% of the company.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) General Counsel Stephen Chen sold 1,024 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $129.13, for a total transaction of $132,229.12. Following the sale, the general counsel owned 51,841 shares of the company's stock, valued at $6,694,228.33. This trade represents a 1.94% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Duolingo Stock Performance

DUOL traded up $6.39 during midday trading on Wednesday, reaching $146.03. The company had a trading volume of 2,261,304 shares, compared to its average volume of 2,013,961. Duolingo, Inc. has a 12-month low of $87.89 and a 12-month high of $355.00. The business has a 50-day moving average price of $129.06 and a two-hundred day moving average price of $114.21. The stock has a market cap of $6.83 billion, a PE ratio of 17.30, a P/E/G ratio of 1.07 and a beta of 0.87. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.72 and a current ratio of 2.72.

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, topping the consensus estimate of $0.60 by $0.06. The company had revenue of $298.45 million during the quarter, compared to analyst estimates of $295.58 million. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. Duolingo's quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.91 EPS. On average, sell-side analysts expect that Duolingo, Inc. will post 2.67 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in DUOL. Root Financial Partners LLC increased its position 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 period. EFG International AG purchased a new position in Duolingo during the fourth quarter valued at approximately $26,000. AlphaCentric Advisors LLC purchased a new position in Duolingo during the fourth quarter valued at approximately $33,000. 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 acquiring an additional 115 shares during the period. Finally, FNY Investment Advisers LLC bought a new stake in Duolingo during the 2nd quarter worth approximately $34,000. Hedge funds and other institutional investors own 91.59% of the company's stock.

Trending Headlines about Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: D.A. Davidson’s upgrade and higher price target provided the main catalyst, implying further upside from recent trading levels. The analyst sees improving execution and strategic developments supporting Duolingo’s next phase of growth. Duolingo Nears a Turning Point and It's Why This Analyst Upgraded the Stock to Buy
• Positive Sentiment: Recent momentum is supported by strong user growth, continued product improvements, healthy cash flow and declining artificial-intelligence costs. Duolingo’s shares had already gained 22.1% over three months, indicating that investors are rewarding progress in operating efficiency and engagement. Duolingo Stock Jumps 22.1% in Three Months
• Neutral Sentiment: Market coverage is focused on whether Duolingo can sustain its rally after the analyst upgrade. The company’s strong balance sheet and user expansion support the long-term case, but investors are increasingly focused on evidence that growth can reaccelerate. Can Duolingo Keep Its Momentum Going?
• Negative Sentiment: Risks include slower bookings and user-growth trends, rising costs and a premium valuation. These factors raise the execution bar and could limit additional gains if monetization or growth fails to meet elevated expectations. Should You Buy Duolingo as Growth Slows and Valuation Stays High?

Analyst Ratings Changes

DUOL has been the topic of a number of recent research reports. UBS Group upped their price target on Duolingo from $125.00 to $150.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Wedbush began coverage on Duolingo in a research note on Thursday, July 16th. They issued a "neutral" rating and a $139.00 price objective on the stock. Scotiabank set a $120.00 price objective on shares of Duolingo in a report on Thursday, August 6th. Zacks Research upgraded shares of Duolingo from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Finally, DA Davidson upgraded shares of Duolingo from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $130.00 to $160.00 in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Duolingo presently has a consensus rating of "Hold" and a consensus price target of $130.50.

Duolingo Company Profile

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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