Duolingo (NASDAQ:DUOL) Now Covered by Analysts at Citigroup

Key Points

• Duolingo's stock was upgraded to a "strong-buy" rating by Citigroup, indicating increased confidence among analysts in the company's growth potential.
• The company reported a 41.5% year-over-year revenue increase, with quarterly earnings of $0.91 per share, surpassing analysts' expectations of $0.55.
• Institutional investors hold approximately 91.59% of Duolingo's stock, reflecting significant confidence from large financial entities in the company's future performance.

Research analysts at Citigroup assumed coverage on shares of Duolingo (NASDAQ:DUOL - Get Free Report) in a research report issued on Monday, MarketBeat Ratings reports. The firm set a "buy" rating and a $400.00 price target on the stock. Citigroup's price objective would suggest a potential upside of 20.53% from the stock's current price.

DUOL has been the topic of a number of other research reports. Scotiabank increased their price target on shares of Duolingo from $405.00 to $470.00 and gave the company a "sector outperform" rating in a report on Friday, May 2nd. UBS Group reiterated an "overweight" rating on shares of Duolingo in a report on Thursday, May 22nd. Evercore ISI increased their price target on shares of Duolingo from $400.00 to $480.00 and gave the company an "outperform" rating in a report on Friday, May 2nd. Barclays increased their price target on shares of Duolingo from $375.00 to $390.00 and gave the company an "equal weight" rating in a report on Thursday, August 7th. Finally, Piper Sandler set a $375.00 price target on shares of Duolingo in a report on Friday, May 2nd. Thirteen analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $451.35.

Duolingo Stock Down 4.0%

NASDAQ:DUOL traded down $13.65 during mid-day trading on Monday, hitting $331.87. 1,957,429 shares of the company's stock were exchanged, compared to its average volume of 2,115,386. Duolingo has a one year low of $202.38 and a one year high of $544.93. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.81 and a quick ratio of 2.81. The business has a fifty day moving average price of $378.13 and a 200 day moving average price of $390.97. The company has a market cap of $15.21 billion, a PE ratio of 136.57, a P/E/G ratio of 2.30 and a beta of 0.87.

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

Insider Activity at Duolingo

In other Duolingo news, insider Robert Meese sold 1,444 shares of the company's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $329.03, for a total transaction of $475,119.32. Following the completion of the sale, the insider directly owned 120,080 shares of the company's stock, valued at approximately $39,509,922.40. This represents a 1.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Stephen C. Chen sold 1,282 shares of the company's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $329.03, for a total transaction of $421,816.46. Following the sale, the general counsel directly owned 34,153 shares of the company's stock, valued at approximately $11,237,361.59. This represents a 3.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 68,056 shares of company stock valued at $27,035,566 over the last quarter. 15.67% of the stock is owned by company insiders.

Institutional Trading of Duolingo

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Cim LLC increased its holdings in Duolingo by 44.5% during the second quarter. Cim LLC now owns 7,073 shares of the company's stock valued at $2,900,000 after buying an additional 2,179 shares during the last quarter. State of Wyoming increased its holdings in Duolingo by 427.6% during the second quarter. State of Wyoming now owns 707 shares of the company's stock valued at $290,000 after buying an additional 573 shares during the last quarter. Nomura Holdings Inc. purchased a new stake in Duolingo during the second quarter valued at approximately $957,000. Caxton Associates LLP purchased a new stake in Duolingo during the second quarter valued at approximately $1,374,000. Finally, Public Sector Pension Investment Board purchased a new stake in Duolingo during the second quarter valued at approximately $11,358,000. 91.59% of the stock is owned by hedge funds and other institutional investors.

Duolingo Company Profile

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.