Duolingo (NASDAQ:DUOL) Stock Rating Lowered by Zacks Research

Key Points

• Duolingo's stock rating has been downgraded from a "strong-buy" to a "hold" by Zacks Research, reflecting a shift in analyst sentiment.
• Investment analysts have varying outlooks on Duolingo, with a consensus rating of "Hold" and an average price target of $416.68.
• Insider trading activity shows significant sales, with an insider selling 10,000 shares at an average price of $321.63, representing a 99.29% decrease in their ownership.

Duolingo (NASDAQ:DUOL - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

A number of other equities research analysts have also weighed in on the company. JPMorgan Chase & Co. dropped their price target on Duolingo from $515.00 to $465.00 and set an "overweight" rating on the stock in a research note on Monday. KeyCorp upgraded Duolingo from a "sector weight" rating to an "overweight" rating and set a $460.00 price target on the stock in a research note on Monday, August 18th. Morgan Stanley lifted their target price on Duolingo from $480.00 to $500.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Citigroup decreased their target price on Duolingo from $400.00 to $375.00 and set a "buy" rating for the company in a report on Wednesday, September 17th. Finally, Barclays lifted their target price on Duolingo from $375.00 to $390.00 and gave the stock an "equal weight" rating in a report on Thursday, August 7th. Twelve investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $416.68.

Duolingo Price Performance

DUOL opened at $332.60 on Monday. The business's 50-day moving average is $315.90 and its two-hundred day moving average is $380.72. Duolingo has a 1 year low of $256.63 and a 1 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 firm has a market capitalization of $15.24 billion, a PE ratio of 136.87, a price-to-earnings-growth ratio of 2.17 and a beta of 0.86.

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

Insider Activity

In related news, insider Natalie Glance sold 3,283 shares of the business's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $312.30, for a total transaction of $1,025,280.90. Following the completion of the sale, the insider directly owned 116,171 shares in the company, valued at approximately $36,280,203.30. The trade was a 2.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Severin Hacker sold 10,000 shares of the business's stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $321.63, for a total value of $3,216,300.00. Following the sale, the insider owned 72 shares of the company's stock, valued at $23,157.36. The trade was a 99.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 83,791 shares of company stock valued at $26,918,301 in the last three months. Company insiders own 18.30% of the company's stock.

Hedge Funds Weigh In On Duolingo

Several hedge funds have recently bought and sold shares of DUOL. Rise Advisors LLC lifted its stake in Duolingo by 43.6% during the 1st quarter. Rise Advisors LLC now owns 79 shares of the company's stock worth $25,000 after acquiring an additional 24 shares in the last quarter. Summit Securities Group LLC acquired a new position in Duolingo during the 1st quarter worth about $28,000. Brooklyn Investment Group lifted its stake in Duolingo by 4,750.0% during the 1st quarter. Brooklyn Investment Group now owns 97 shares of the company's stock worth $30,000 after acquiring an additional 95 shares in the last quarter. Garde Capital Inc. acquired a new position in Duolingo during the 1st quarter worth about $31,000. Finally, Kiker Wealth Management LLC acquired a new position in Duolingo during the 2nd quarter worth about $31,000. Institutional investors and hedge funds own 91.59% of the company's stock.

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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