Duolingo (NASDAQ:DUOL) Hits New 12-Month Low - Time to Sell?

Key Points

• Duolingo hit a new 52‑week low — shares traded as low as $90.88 (last $90.31) on Wednesday, down about 5.4%, valuing the company at roughly $4.21 billion.
• Analyst consensus is "Hold" — ratings are mixed (4 Buys, 17 Holds, 2 Sells) with an average price target of $206.32 despite recent target cuts from some firms.
• Underlying results and valuation look strong — Duolingo beat Q4 estimates (EPS $0.91 vs $0.79) with revenue up 35% YoY and a ~39.9% net margin, and the stock trades at a low PE of 10.69 and PEG of 0.67.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday . The stock traded as low as $90.88 and last traded at $90.3110, with a volume of 2175389 shares traded. The stock had previously closed at $96.29.

Wall Street Analysts Forecast Growth

DUOL has been the subject of several recent research reports. JPMorgan Chase & Co. reissued a "neutral" rating and set a $95.00 target price (down from $200.00) on shares of Duolingo in a research report on Friday, February 27th. Jefferies Financial Group boosted their target price on shares of Duolingo from $210.00 to $220.00 and gave the stock a "hold" rating in a research report on Thursday, December 11th. Weiss Ratings reissued a "hold (c)" rating on shares of Duolingo in a research report on Monday, December 29th. Bank of America reissued a "neutral" rating and set a $100.00 target price on shares of Duolingo in a research report on Friday, February 27th. Finally, BMO Capital Markets raised shares of Duolingo to a "buy" rating in a research report on Monday, January 12th. Four equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $206.32.

Duolingo Trading Down 5.4%

The firm has a market capitalization of $4.21 billion, a PE ratio of 10.69, a PEG ratio of 0.67 and a beta of 0.89. The firm's fifty day moving average is $107.22 and its two-hundred day moving average is $183.77. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.61 and a quick ratio of 2.61.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.12. Duolingo had a net margin of 39.91% and a return on equity of 14.88%. The business had revenue of $282.87 million for the quarter, compared to analysts' expectations of $275.95 million. The firm's revenue for the quarter was up 35.0% on a year-over-year basis. On average, equities analysts predict that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Insider Buying and Selling at Duolingo

In related news, insider Robert Meese sold 1,000 shares of the business's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $110.06, for a total transaction of $110,060.00. Following the transaction, the insider directly owned 122,636 shares in the company, valued at approximately $13,497,318.16. The trade was a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director James H. Shelton purchased 5,000 shares of the business's stock in a transaction that occurred on Tuesday, March 3rd. The shares were purchased at an average price of $99.76 per share, for a total transaction of $498,800.00. Following the completion of the acquisition, the director owned 9,632 shares of the company's stock, valued at $960,888.32. The trade was a 107.94% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 14,939 shares of company stock valued at $1,676,291 in the last quarter. 18.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. EFG International AG purchased a new position in Duolingo in the fourth quarter valued at about $26,000. Atlantic Union Bankshares Corp purchased a new position in Duolingo in the third quarter valued at about $32,000. AlphaCentric Advisors LLC purchased a new position in Duolingo in the fourth quarter valued at about $33,000. Farther Finance Advisors LLC boosted its stake in Duolingo by 82.2% in the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company's stock valued at $43,000 after acquiring an additional 60 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd purchased a new position in Duolingo in the fourth quarter valued at about $43,000. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

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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