Duolingo (NASDAQ:DUOL) Insider Natalie Glance Sells 3,360 Shares

Key Points

• Duolingo insider Natalie Glance sold 3,360 shares on May 18 at an average price of $113.59, totaling about $381,662. The sale was made under a pre-arranged 10b5-1 plan and was tied to tax withholding from vesting equity awards.
• Duolingo’s latest earnings beat expectations, with Q1 EPS of $0.89 versus the $0.79 consensus and revenue of $291.97 million, up 26.5% year over year. The company also reported strong profitability, including a 38.44% net margin.
• Analyst sentiment remains cautious, with a consensus rating of “Hold” and an average price target of $195.94. Several firms have recently cut targets or maintained neutral/hold views, even as institutional ownership remains high at 91.59%.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) insider Natalie Glance sold 3,360 shares of Duolingo stock in a transaction on Monday, May 18th. The stock was sold at an average price of $113.59, for a total transaction of $381,662.40. Following the completion of the transaction, the insider owned 173,401 shares in the company, valued at $19,696,619.59. This trade represents a 1.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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.

Natalie Glance also recently made the following trade(s):

• On Friday, May 15th, Natalie Glance sold 1,929 shares of Duolingo stock. The shares were sold at an average price of $112.16, for a total transaction of $216,356.64.
• On Wednesday, February 18th, Natalie Glance sold 3,545 shares of Duolingo stock. The shares were sold at an average price of $113.51, for a total transaction of $402,392.95.

Duolingo Price Performance

Shares of DUOL stock traded up $0.86 during trading hours on Tuesday, reaching $114.10. 1,806,600 shares of the company were exchanged, compared to its average volume of 2,449,816. The stock's fifty day moving average is $100.90 and its two-hundred day moving average is $142.73. Duolingo, Inc. has a fifty-two week low of $87.89 and a fifty-two week high of $540.30. The company has a market cap of $5.32 billion, a price-to-earnings ratio of 13.13, a P/E/G ratio of 0.85 and a beta of 0.90. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.62 and a quick ratio of 2.62.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its quarterly earnings data on Monday, May 4th. The company reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.10. The company had revenue of $291.97 million during the quarter, compared to the consensus estimate of $288.60 million. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The firm's revenue was up 26.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.72 earnings per share. Sell-side analysts forecast that Duolingo, Inc. will post 2.84 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Duolingo

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DUOL. Baillie Gifford & Co. boosted its position in shares of Duolingo by 71.9% during the 4th quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company's stock valued at $853,184,000 after acquiring an additional 2,033,611 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Duolingo by 511.2% during the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company's stock valued at $131,325,000 after buying an additional 1,114,315 shares during the period. State of Michigan Retirement System boosted its position in Duolingo by 112.9% during the first quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company's stock valued at $117,624,000 after purchasing an additional 632,807 shares in the last quarter. FIL Ltd boosted its holdings in Duolingo by 1,715,575.9% in the fourth quarter. FIL Ltd now owns 497,546 shares of the company's stock worth $87,319,000 after acquiring an additional 497,517 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Duolingo during the fourth quarter worth about $86,159,000. 91.59% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on DUOL. Argus restated a "hold" rating on shares of Duolingo in a research report on Wednesday, March 18th. Citigroup reiterated a "neutral" rating and issued a $101.00 target price (down from $270.00) on shares of Duolingo in a report on Friday, February 27th. Weiss Ratings lowered shares of Duolingo from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, April 22nd. Morgan Stanley cut their price objective on shares of Duolingo from $100.00 to $95.00 and set an "equal weight" rating for the company in a research report on Tuesday, May 5th. Finally, The Goldman Sachs Group decreased their price target on shares of Duolingo from $250.00 to $105.00 and set a "neutral" rating on the stock in a research note on Monday, March 2nd. Three investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $195.94.

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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