Duolingo (NASDAQ:DUOL) Shares Gap Up - Here's What Happened

Key Points

• Duolingo's shares opened at $296.22, up from a previous close of $285.91, and last traded at $298.92 with a trading volume of 164,047 shares.
• Analysts have conflicting views on Duolingo, with Morgan Stanley raising its price target to $500 while DA Davidson lowered it to $300, resulting in an average target price of $420.63 among analysts.
• In its last earnings report, Duolingo posted $0.91 EPS, significantly exceeding expectations and achieving a 41.5% year-over-year revenue increase.

Shares of Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $285.91, but opened at $296.22. Duolingo shares last traded at $298.92, with a volume of 164,047 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms have issued reports on DUOL. Morgan Stanley lifted their price objective on Duolingo from $480.00 to $500.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. DA Davidson lowered Duolingo from a "buy" rating to a "neutral" rating and decreased their target price for the company from $500.00 to $300.00 in a research report on Thursday, September 4th. Wells Fargo & Company started coverage on Duolingo in a research report on Monday. They issued an "underweight" rating and a $239.00 price target for the company. UBS Group reaffirmed an "overweight" rating on shares of Duolingo in a research report on Thursday, May 22nd. Finally, Baird R W raised Duolingo to a "hold" rating in a report on Friday, September 5th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $420.63.

Duolingo Stock Performance

The stock has a market cap of $14.20 billion, a PE ratio of 128.17, a P/E/G ratio of 1.82 and a beta of 0.85. 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 stock has a 50-day moving average of $341.16 and a 200 day moving average of $380.53.

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

Insider Activity at Duolingo

In other news, General Counsel Stephen C. Chen sold 1,515 shares of the business's stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $321.36, for a total value of $486,860.40. Following the completion of the sale, the general counsel directly owned 32,638 shares of the company's stock, valued at approximately $10,488,547.68. The trade was a 4.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Matthew Skaruppa sold 10,937 shares of the business's stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $317.39, for a total value of $3,471,294.43. Following the completion of the sale, the chief financial officer directly owned 43,345 shares of the company's stock, valued at $13,757,269.55. The trade was 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 worth $28,428,221 over the last three months. Company insiders own 15.67% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in DUOL. Jefferies Financial Group Inc. acquired a new position in Duolingo in the first quarter worth about $3,772,000. Hsbc Holdings PLC raised its holdings in shares of Duolingo by 39.0% during the first quarter. Hsbc Holdings PLC now owns 3,186 shares of the company's stock valued at $995,000 after buying an additional 894 shares during the last quarter. Encompass More Asset Management bought a new stake in shares of Duolingo during the first quarter valued at approximately $762,000. Jump Financial LLC raised its holdings in Duolingo by 563.7% during the first quarter. Jump Financial LLC now owns 104,693 shares of the company's stock worth $32,511,000 after purchasing an additional 88,918 shares in the last quarter. Finally, Silvant Capital Management LLC bought a new stake in Duolingo during the first quarter worth approximately $1,946,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.