Duolingo (NASDAQ:DUOL) Shares Down 4.7% - Here's Why

Key Points

• Duolingo's shares fell 4.7% during mid-day trading on Monday, with a significant drop in trading volume, indicating decreased investor interest.
• A number of analysts have adjusted their price targets for Duolingo, with a consensus rating of "Moderate Buy" and an average target price of $420.63.
• Duolingo reported strong quarterly earnings, with $0.91 EPS, exceeding analyst expectations, and a revenue increase of 41.5% year-over-year, totaling $252.27 million.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) shares fell 4.7% during mid-day trading on Monday . The company traded as low as $295.57 and last traded at $293.39. 390,318 shares traded hands during trading, a decline of 65% from the average session volume of 1,117,897 shares. The stock had previously closed at $307.91.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on DUOL. JMP Securities dropped their target price on shares of Duolingo from $475.00 to $450.00 and set a "market outperform" rating for the company in a research report on Monday, July 28th. UBS Group restated an "overweight" rating on shares of Duolingo in a report on Thursday, May 22nd. Morgan Stanley upped their price target on Duolingo from $480.00 to $500.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Barclays upped their price target on Duolingo from $375.00 to $390.00 and gave the stock an "equal weight" rating in a report on Thursday, August 7th. Finally, Baird R W upgraded Duolingo to a "hold" rating in a report on Friday, September 5th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Duolingo has a consensus rating of "Moderate Buy" and an average target price of $420.63.

Duolingo Trading Down 7.4%

The business's 50 day moving average is $337.69 and its two-hundred day moving average is $379.41. 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 firm has a market capitalization of $13.06 billion, a P/E ratio of 117.33, a PEG ratio of 2.05 and a beta of 0.85.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $0.91 earnings per share for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $240.84 million. During the same period in the previous year, the business earned $0.51 earnings per share. The company's revenue was up 41.5% on a year-over-year basis. Analysts expect that Duolingo, Inc. will post 2.03 EPS for the current year.

Insider Transactions at Duolingo

In other Duolingo news, insider Robert Meese sold 1,444 shares of the business's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $329.03, for a total value of $475,119.32. Following the sale, the insider directly owned 120,080 shares in the company, valued at approximately $39,509,922.40. The trade was a 1.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Matthew Skaruppa sold 10,937 shares of the business's stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $317.39, for a total transaction of $3,471,294.43. Following the completion of the sale, the chief financial officer owned 43,345 shares in the company, valued at approximately $13,757,269.55. This trade represents a 20.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 80,508 shares of company stock valued at $28,428,221 in the last quarter. 18.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Duolingo

Hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in Duolingo by 3.3% in the 2nd quarter. Vanguard Group Inc. now owns 3,647,951 shares of the company's stock worth $1,495,733,000 after purchasing an additional 116,135 shares in the last quarter. Invesco Ltd. lifted its stake in Duolingo by 24.1% in the first quarter. Invesco Ltd. now owns 1,346,278 shares of the company's stock valued at $418,073,000 after acquiring an additional 261,212 shares during the last quarter. State Street Corp grew its holdings in Duolingo by 0.5% during the second quarter. State Street Corp now owns 1,164,387 shares of the company's stock valued at $477,422,000 after purchasing an additional 6,109 shares during the last quarter. T. Rowe Price Investment Management Inc. grew its holdings in Duolingo by 110.5% during the first quarter. T. Rowe Price Investment Management Inc. now owns 990,903 shares of the company's stock valued at $307,716,000 after purchasing an additional 520,069 shares during the last quarter. Finally, Geode Capital Management LLC grew its holdings in Duolingo by 3.2% during the second quarter. Geode Capital Management LLC now owns 759,956 shares of the company's stock valued at $311,930,000 after purchasing an additional 23,356 shares during the last quarter. 91.59% of the stock is currently owned by 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.

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