Duolingo (NASDAQ:DUOL) Shares Down 7.6% on Insider Selling

Key Points

• Duolingo's shares declined by 7.6% following insider selling, with significant trades made by executives including Robert Meese and CFO Matthew Skaruppa.
• Despite the drop, analysts have maintained a generally positive outlook, with a consensus target price averaging around $451.35 and numerous "Buy" ratings from equity research firms.
• Duolingo reported strong quarterly earnings with $0.91 earnings per share, surpassing expectations and showing a 41.5% year-over-year revenue increase.

Shares of Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) dropped 7.6% during trading on Tuesday following insider selling activity. The stock traded as low as $343.74 and last traded at $341.23. Approximately 793,611 shares were traded during trading, a decline of 23% from the average daily volume of 1,027,730 shares. The stock had previously closed at $369.19.

Specifically, 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 transaction of $475,119.32. Following the transaction, the insider owned 120,080 shares in the company, valued at $39,509,922.40. The trade was a 1.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Natalie Glance sold 2,533 shares of Duolingo stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $329.03, for a total value of $833,432.99. Following the sale, the insider owned 122,112 shares in the company, valued at $40,178,511.36. This represents a 2.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, CFO Matthew Skaruppa sold 2,797 shares of the business's stock in a transaction on Friday, August 15th. The shares were sold at an average price of $329.03, for a total transaction of $920,296.91. Following the sale, the chief financial officer owned 52,904 shares in the company, valued at approximately $17,407,003.12. The trade was a 5.02% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website.

Wall Street Analyst Weigh In

DUOL has been the subject of a number of recent research reports. JPMorgan Chase & Co. boosted their target price on Duolingo from $500.00 to $515.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Piper Sandler set a $375.00 target price on shares of Duolingo in a research note on Friday, May 2nd. Morgan Stanley upped their price target on shares of Duolingo from $480.00 to $500.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. JMP Securities decreased their price objective on shares of Duolingo from $475.00 to $450.00 and set a "market outperform" rating on the stock in a research report on Monday, July 28th. Finally, Citigroup began coverage on shares of Duolingo in a research note on Monday. They set a "buy" rating and a $400.00 target price on the stock. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Duolingo presently has an average rating of "Moderate Buy" and an average target price of $451.35.

Duolingo Trading Down 7.9%

The stock's 50-day moving average price is $389.38 and its 200 day moving average price is $392.20. The firm has a market capitalization of $15.58 billion, a PE ratio of 139.47, a price-to-earnings-growth ratio of 2.18 and a beta of 0.87. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.81 and a quick ratio of 2.81.

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, topping analysts' consensus estimates of $0.55 by $0.36. The firm had revenue of $252.27 million during the quarter, compared to analysts' expectations of $240.84 million. Duolingo had a return on equity of 13.32% and a net margin of 13.24%.The firm's quarterly revenue was up 41.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.51 EPS. On average, sell-side analysts expect that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Contravisory Investment Management Inc. acquired a new stake in shares of Duolingo in the first quarter worth $25,000. Rise Advisors LLC boosted its holdings in Duolingo by 43.6% in the 1st quarter. Rise Advisors LLC now owns 79 shares of the company's stock worth $25,000 after buying an additional 24 shares during the last quarter. Summit Securities Group LLC purchased a new stake in Duolingo during the 1st quarter worth approximately $28,000. Quarry LP raised its holdings in shares of Duolingo by 250.0% during the fourth quarter. Quarry LP now owns 91 shares of the company's stock valued at $30,000 after acquiring an additional 65 shares during the last quarter. Finally, Brooklyn Investment Group lifted its position in shares of Duolingo by 4,750.0% in the first quarter. Brooklyn Investment Group now owns 97 shares of the company's stock valued at $30,000 after acquiring an additional 95 shares in the last quarter. 91.59% of the stock is currently 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.

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