Duolingo (NASDAQ:DUOL) Stock Price Down 7.7% - Time to Sell?

Key Points

• Duolingo's stock price fell by 7.7% to $297.14, with trading volume down 23% from its average.
• Analysts have varied ratings on Duolingo, with one Strong Buy, twelve Buy, nine Hold, and one Sell, resulting in a current consensus rating of Moderate Buy.
• Duolingo reported a 41.5% revenue increase year-over-year, achieving $252.27 million, alongside an EPS of $0.91 compared to the anticipated $0.55.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report)'s share price dropped 7.7% on Wednesday . The company traded as low as $311.15 and last traded at $297.14. Approximately 893,702 shares changed hands during trading, a decline of 23% from the average daily volume of 1,161,599 shares. The stock had previously closed at $321.84.

Analyst Upgrades and Downgrades

DUOL has been the topic of a number of analyst reports. Raymond James Financial reaffirmed a "market perform" rating on shares of Duolingo in a report on Tuesday, August 26th. Wells Fargo & Company initiated coverage on shares of Duolingo in a report on Monday, September 8th. They set an "underweight" rating and a $239.00 target price on the stock. Wall Street Zen lowered shares of Duolingo from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. Citigroup decreased their target price on shares of Duolingo from $400.00 to $375.00 and set a "buy" rating on the stock in a report on Wednesday, September 17th. Finally, Barclays increased their price target on shares of Duolingo from $375.00 to $390.00 and gave the stock an "equal weight" rating in a report on Thursday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $419.32.

Duolingo Stock Down 5.6%

The stock's fifty day moving average price is $320.44 and its 200 day moving average price is $380.00. The stock has a market cap of $13.92 billion, a P/E ratio of 124.99, a price-to-earnings-growth ratio of 2.19 and a beta of 0.85. The company has a current ratio of 2.81, a quick ratio of 2.81 and a debt-to-equity ratio of 0.10.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued 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 net margin of 13.24% and a return on equity of 13.32%. The firm had revenue of $252.27 million for the quarter, compared to analyst estimates of $240.84 million. During the same quarter in the prior year, the firm earned $0.51 EPS. The business's revenue for the quarter was up 41.5% compared to the same quarter last year. As a group, research analysts forecast that Duolingo, Inc. will post 2.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, General Counsel Stephen C. Chen sold 1,515 shares of the company's stock in a transaction on Tuesday, August 26th. The shares were 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 owned 32,638 shares of the company's stock, valued at approximately $10,488,547.68. This represents a 4.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Severin Hacker sold 10,000 shares of the company's stock in a transaction on Friday, September 19th. The shares were sold at an average price of $288.94, for a total transaction of $2,889,400.00. Following the completion of the sale, the insider directly owned 72 shares of the company's stock, valued at $20,803.68. This trade represents a 99.29% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 80,508 shares of company stock worth $26,605,621 in the last ninety days. 18.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Duolingo

A number of institutional investors have recently made changes to their positions in the business. Centaurus Financial Inc. purchased a new stake in Duolingo during the 2nd quarter valued at $115,000. China Universal Asset Management Co. Ltd. boosted its position in Duolingo by 10.5% during the 2nd quarter. China Universal Asset Management Co. Ltd. now owns 4,200 shares of the company's stock valued at $1,722,000 after buying an additional 400 shares during the period. Thrivent Financial for Lutherans boosted its position in Duolingo by 4.0% during the 2nd quarter. Thrivent Financial for Lutherans now owns 9,244 shares of the company's stock valued at $3,790,000 after buying an additional 359 shares during the period. Neuberger Berman Group LLC boosted its position in Duolingo by 68.8% during the 2nd quarter. Neuberger Berman Group LLC now owns 115,494 shares of the company's stock valued at $47,355,000 after buying an additional 47,070 shares during the period. Finally, Cim LLC boosted its position in Duolingo by 44.5% during the 2nd 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 period. Hedge funds and other institutional investors own 91.59% of the company's stock.

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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