Duolingo (NASDAQ:DUOL) Stock Rating Upgraded by Wall Street Zen

Key Points

• Duolingo has been upgraded from a "hold" rating to a "buy" rating by Wall Street Zen, reflecting positive sentiment among analysts about the company's potential.
• Several analysts have adjusted their target prices for Duolingo, with JPMorgan raising it to $515 and Needham & Company increasing it to $460, indicating strong market confidence.
• Duolingo reported a significant earnings surprise with an EPS of $0.91, exceeding expectations, alongside a 41.5% increase in quarterly revenue compared to the previous year.

Duolingo (NASDAQ:DUOL - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday.

A number of other research firms have also recently commented on DUOL. UBS Group restated an "overweight" rating on shares of Duolingo in a research note on Thursday, May 22nd. DA Davidson lowered their target price on Duolingo from $600.00 to $500.00 and set a "buy" rating for the company in a research note on Wednesday, June 25th. Citizens Jmp lowered their target price on Duolingo from $475.00 to $450.00 and set a "mkt outperform" rating for the company in a research note on Monday, July 28th. JPMorgan Chase & Co. boosted their target price on Duolingo from $500.00 to $515.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Finally, Morgan Stanley set a $500.00 target price on Duolingo and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Five analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $454.20.

Duolingo Trading Down 5.4%

NASDAQ:DUOL traded down $18.41 during trading hours on Friday, reaching $322.19. 2,419,347 shares of the stock were exchanged, compared to its average volume of 998,295. The company has a quick ratio of 2.81, a current ratio of 2.81 and a debt-to-equity ratio of 0.10. The business has a 50-day moving average of $407.17 and a two-hundred day moving average of $392.81. Duolingo has a twelve month low of $185.10 and a twelve month high of $544.93. The company has a market capitalization of $14.64 billion, a price-to-earnings ratio of 132.59, a PEG ratio of 2.47 and a beta of 0.87.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $0.91 EPS for the quarter, topping analysts' consensus estimates of $0.55 by $0.36. Duolingo had a return on equity of 13.32% and a net margin of 13.24%. The company had revenue of $252.27 million for the quarter, compared to analysts' expectations of $240.84 million. During the same period in the prior year, the firm earned $0.51 earnings per share. The firm's revenue was up 41.5% compared to the same quarter last year. On average, equities analysts predict that Duolingo will post 2.03 EPS for the current year.

Insider Buying and Selling at Duolingo

In other news, insider Severin Hacker sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $344.41, for a total transaction of $3,444,100.00. Following the completion of the transaction, the insider directly owned 72 shares of the company's stock, valued at $24,797.52. This trade represents a 99.29% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Over the last three months, insiders have sold 50,000 shares of company stock worth $20,939,300. Company insiders own 18.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of DUOL. Kiker Wealth Management LLC purchased a new stake in Duolingo in the 2nd quarter worth approximately $31,000. Rise Advisors LLC lifted its holdings in shares of Duolingo by 43.6% during the 1st quarter. Rise Advisors LLC now owns 79 shares of the company's stock valued at $25,000 after acquiring an additional 24 shares in the last quarter. Contravisory Investment Management Inc. acquired a new position in Duolingo in the 1st quarter worth $25,000. Quarry LP lifted its holdings in Duolingo by 250.0% in the 4th quarter. Quarry LP now owns 91 shares of the company's stock worth $30,000 after buying an additional 65 shares in the last quarter. Finally, Summit Securities Group LLC acquired a new position in Duolingo in the 1st quarter worth $28,000. 91.59% of the stock is owned by hedge funds and other institutional investors.

About Duolingo

Duolingo, Inc operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam.