Duolingo (NASDAQ:DUOL) Trading Up 8.3% - What's Next?

Key Points

• Duolingo's stock price surged by 8.3% during trading, reaching a high of $353.98, although trading volume decreased significantly.
• Analyst reports have impacted Duolingo's stock ratings, with a consensus rating of "Moderate Buy" and a target price of $451.35 from various equity research analysts.
• The company's last earnings report highlighted strong growth, with a 41.5% year-over-year revenue increase and an earnings per share of $0.91, exceeding analyst expectations.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) traded up 8.3% during mid-day trading on Monday . The stock traded as high as $353.98 and last traded at $353.90. 445,430 shares were traded during trading, a decline of 56% from the average session volume of 1,010,936 shares. The stock had previously closed at $326.93.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Citizens Jmp reduced their price target on shares of Duolingo from $475.00 to $450.00 and set a "mkt outperform" rating on the stock in a research report on Monday, July 28th. KeyCorp upgraded shares of Duolingo from a "sector weight" rating to an "overweight" rating and set a $460.00 price objective on the stock in a report on Monday. Barclays upped their price objective 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. Scotiabank upped their price objective on shares of Duolingo from $405.00 to $470.00 and gave the stock a "sector outperform" rating in a report on Friday, May 2nd. Finally, JMP Securities cut their price objective on shares of Duolingo from $475.00 to $450.00 and set a "market outperform" rating on the stock in a report on Monday, July 28th. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $451.35.

Duolingo Trading Down 4.0%

The firm's 50 day moving average price is $381.06 and its 200-day moving average price is $391.35. The stock has a market cap of $15.21 billion, a P/E ratio of 142.19, a P/E/G ratio of 2.30 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, beating analysts' consensus estimates of $0.55 by $0.36. The company had revenue of $252.27 million for the quarter, compared to the consensus estimate of $240.84 million. Duolingo had a net margin of 13.24% and a return on equity of 13.32%. The firm's revenue for the quarter was up 41.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.51 earnings per share. As a group, equities research analysts forecast that Duolingo, Inc. will post 2.03 earnings per share for the current year.

Insiders Place Their Bets

In other Duolingo news, General Counsel Stephen C. Chen sold 1,282 shares of the 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 $421,816.46. Following the transaction, the general counsel directly owned 34,153 shares in the company, valued at approximately $11,237,361.59. This trade represents a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Matthew Skaruppa sold 2,797 shares of the stock in a transaction on Friday, August 15th. The stock was sold at an average price of $329.03, for a total transaction of $920,296.91. Following the completion of the sale, the chief financial officer directly owned 52,904 shares of the company's stock, valued at approximately $17,407,003.12. This trade represents a 5.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 68,056 shares of company stock valued at $27,035,566. 15.67% of the stock is currently owned by corporate insiders.

Institutional Trading of Duolingo

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Rise Advisors LLC increased its stake in shares of Duolingo by 43.6% in the first quarter. Rise Advisors LLC now owns 79 shares of the company's stock worth $25,000 after purchasing an additional 24 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in shares of Duolingo by 20.5% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 153 shares of the company's stock worth $48,000 after purchasing an additional 26 shares in the last quarter. Parallel Advisors LLC increased its stake in shares of Duolingo by 16.3% in the second quarter. Parallel Advisors LLC now owns 186 shares of the company's stock worth $76,000 after purchasing an additional 26 shares in the last quarter. US Bancorp DE increased its stake in shares of Duolingo by 1.4% in the second quarter. US Bancorp DE now owns 1,968 shares of the company's stock worth $807,000 after purchasing an additional 28 shares in the last quarter. Finally, Lido Advisors LLC increased its stake in shares of Duolingo by 0.3% in the fourth quarter. Lido Advisors LLC now owns 10,104 shares of the company's stock worth $3,276,000 after purchasing an additional 30 shares in the last quarter. 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.