Duolingo (NASDAQ:DUOL) Trading Down 4.9% - Should You Sell?

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report)'s share price dropped 4.9% on Wednesday . The company traded as low as $358.01 and last traded at $359.74. Approximately 554,072 shares were traded during trading, a decline of 25% from the average daily volume of 734,267 shares. The stock had previously closed at $378.31.

Analysts Set New Price Targets

Several research analysts have recently weighed in on DUOL shares. Barclays lifted their price target on shares of Duolingo from $330.00 to $375.00 and gave the stock an "equal weight" rating in a research note on Friday, May 2nd. The Goldman Sachs Group lifted their price target on shares of Duolingo from $340.00 to $403.00 and gave the company a "neutral" rating in a report on Monday, May 5th. Citizens Jmp upgraded shares of Duolingo from a "market perform" rating to an "outperform" rating and set a $400.00 target price on the stock in a report on Tuesday, March 18th. UBS Group reaffirmed an "overweight" rating on shares of Duolingo in a research note on Thursday, May 22nd. Finally, Scotiabank upped their price target on shares of Duolingo from $405.00 to $470.00 and gave the stock a "sector outperform" rating in a research report on Friday, May 2nd. Seven analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $441.20.

Duolingo Trading Down 4.9%

The company has a market cap of $16.34 billion, a price-to-earnings ratio of 177.22, a price-to-earnings-growth ratio of 2.89 and a beta of 0.89. The company has a quick ratio of 2.68, a current ratio of 2.68 and a debt-to-equity ratio of 0.06. The company's 50-day moving average is $470.33 and its 200 day moving average is $389.12.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The company reported $0.72 EPS for the quarter, beating the consensus estimate of $0.52 by $0.20. The company had revenue of $230.74 million for the quarter, compared to analyst estimates of $223.15 million. Duolingo had a net margin of 11.93% and a return on equity of 11.70%. The company's quarterly revenue was up 37.6% on a year-over-year basis. Research analysts predict that Duolingo, Inc. will post 2.03 EPS for the current year.

Insider Activity

In other news, insider Robert Meese sold 5,000 shares of the firm's stock in a transaction dated Tuesday, April 29th. The shares were sold at an average price of $395.00, for a total value of $1,975,000.00. Following the transaction, the insider directly owned 118,805 shares of the company's stock, valued at approximately $46,927,975. This trade represents a 4.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Severin Hacker sold 10,000 shares of the firm's stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $392.89, for a total transaction of $3,928,900.00. Following the completion of the transaction, the insider directly owned 72 shares in the company, valued at approximately $28,288.08. This represents a 99.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 65,000 shares of company stock worth $27,646,500. Company insiders own 18.30% of the company's stock.

Hedge Funds Weigh In On Duolingo

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