Duolingo (NASDAQ:DUOL) Insider Sells $355,236.63 in Stock

Key Points

• Duolingo insider Natalie Glance sold 2,751 shares for $355,236.63 under a pre-arranged Rule 10b5-1 plan to cover tax obligations from vested equity awards. She retained 170,650 shares after the sale and also recently sold 1,539 additional shares.
• Duolingo reported quarterly EPS of $0.66, beating estimates of $0.60, while revenue rose 18.3% year over year to $298.45 million. The stock traded at $146.03, near its 52-week range midpoint, with a market capitalization of approximately $6.83 billion.
• Analyst sentiment improved, with KeyCorp and Citigroup upgrading the stock and D.A. Davidson raising its rating to Buy and price target to $160. However, MarketBeat’s overall consensus remains Hold, reflecting concerns about slowing growth, higher costs and premium valuation.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) insider Natalie Glance sold 2,751 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 $355,236.63. Following the sale, the insider owned 170,650 shares of the company's stock, valued at approximately $22,036,034.50. This represents a 1.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available 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 Tuesday, August 18th, Natalie Glance sold 1,539 shares of Duolingo stock. The stock was sold at an average price of $137.80, for a total transaction of $212,074.20.

Duolingo Stock Performance

DUOL traded up $6.39 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. The stock has a market cap of $6.83 billion, a P/E 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, Inc. has a fifty-two week low of $87.89 and a fifty-two week high of $355.00. The company's fifty day moving average is $129.06 and its 200 day moving average is $114.21.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its quarterly earnings data 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. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The firm had revenue of $298.45 million during the quarter, compared to the consensus estimate of $295.58 million. During the same period last year, the business posted $0.91 earnings per share. The business's revenue for the quarter was up 18.3% compared to the same quarter last year. As a group, analysts predict that Duolingo, Inc. will post 2.67 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages have commented on DUOL. KeyCorp raised Duolingo from a "hold" rating to an "overweight" rating in a report on Tuesday. Citigroup raised Duolingo from a "hold" rating to a "buy" rating in a report on Tuesday. Weiss Ratings upgraded shares of Duolingo from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, June 18th. DA Davidson raised shares of Duolingo from a "neutral" rating to a "buy" rating and raised their price target for the stock from $130.00 to $160.00 in a research report on Tuesday. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Duolingo from $94.00 to $125.00 and gave the stock a "neutral" rating in a research note on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $130.50.

Key Stories Impacting 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?

Institutional Trading of Duolingo

A number of institutional investors have recently modified their holdings of DUOL. Public Employees Retirement System of Ohio acquired a new stake in shares of Duolingo during the 2nd quarter worth $1,262,000. Generali Investments Management Co LLC acquired a new position in Duolingo in the second quarter valued at about $565,000. Everhart Financial Group Inc. acquired a new position in Duolingo in the second quarter valued at about $313,000. FNY Investment Advisers LLC bought a new stake in Duolingo during the second quarter worth about $34,000. Finally, GAMMA Investing LLC lifted its position in Duolingo by 103.1% during the second quarter. GAMMA Investing LLC now owns 1,324 shares of the company's stock worth $152,000 after purchasing an additional 672 shares during the period. 91.59% of the stock is currently owned by 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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