Duolingo (NASDAQ:DUOL) Upgraded to Buy at DA Davidson

Key Points

• DA Davidson upgraded Duolingo to “Buy” from “Neutral” and raised its price target to $160 from $130, implying approximately 22.9% upside from the stock’s $130.16 opening price.
• Despite the upgrade, analysts remain broadly cautious: Duolingo has a consensus “Hold” rating and an average price target of $130.50, with 17 analysts rating it a Hold.
• Duolingo’s latest quarter exceeded expectations, with adjusted earnings of $0.66 per share versus the $0.60 consensus and revenue of $298.45 million, up 18.3% year over year. Institutional investors own 91.59% of the company’s shares.

Duolingo (NASDAQ:DUOL - Get Free Report) was upgraded by equities research analysts at DA Davidson from a "neutral" rating to a "buy" rating in a report released on Tuesday,Benzinga reports. The firm presently has a $160.00 price objective on the stock, up from their previous price objective of $130.00. DA Davidson's price objective points to a potential upside of 22.93% from the company's current price.

DUOL has been the subject of a number of other research reports. Morgan Stanley upped their target price on shares of Duolingo from $95.00 to $125.00 and gave the stock an "equal weight" rating in a report on Thursday, July 16th. Zacks Research upgraded shares of Duolingo from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Wall Street Zen upgraded shares of Duolingo from a "sell" rating to a "hold" rating in a research report on Sunday. Weiss Ratings raised shares of Duolingo from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, June 18th. Finally, Jefferies Financial Group increased their price objective on shares of Duolingo from $95.00 to $125.00 and gave the company a "hold" rating in a report on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, seventeen have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $130.50.

Duolingo Stock Performance

Shares of NASDAQ:DUOL opened at $130.16 on Tuesday. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. Duolingo has a 1 year low of $87.89 and a 1 year high of $371.63. The firm has a market capitalization of $6.09 billion, a PE ratio of 15.42, a P/E/G ratio of 1.07 and a beta of 0.87. The business's 50 day moving average price is $128.62 and its 200-day moving average price is $114.24.

Duolingo (NASDAQ:DUOL - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.66 EPS for the quarter, beating the consensus estimate of $0.60 by $0.06. The firm had revenue of $298.45 million during the quarter, compared to the consensus estimate of $295.58 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The firm's revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.91 EPS. As a group, equities research analysts expect that Duolingo will post 2.67 earnings per share for the current fiscal year.

Institutional Trading of Duolingo

A number of hedge funds and other institutional investors have recently modified their holdings of DUOL. Public Employees Retirement System of Ohio purchased a new position in shares of Duolingo during the 2nd quarter worth $1,262,000. Generali Investments Management Co LLC purchased a new stake in shares of Duolingo in the second quarter valued at about $565,000. Everhart Financial Group Inc. purchased a new stake in shares of Duolingo in the second quarter valued at about $313,000. FNY Investment Advisers LLC acquired a new stake in Duolingo during the second quarter worth about $34,000. Finally, GAMMA Investing LLC increased its position in Duolingo by 103.1% during the second quarter. GAMMA Investing LLC now owns 1,324 shares of the company's stock worth $152,000 after purchasing an additional 672 shares during the last quarter. 91.59% of the stock is owned by institutional investors and hedge funds.

About Duolingo

Duolingo, Inc NASDAQ: DUOL is a technology-driven education company that operates a widely used language-learning platform. Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo offers a freemium service featuring bite-sized lessons, gamified exercises and adaptive learning algorithms. The company's core product is its mobile and web application, which supports instruction in more than 40 languages, ranging from widely spoken tongues such as English and Spanish to lesser-taught options including Irish and Swahili.

In addition to its flagship language courses, Duolingo has expanded its product suite to include the Duolingo English Test, an on-demand, computer-based English proficiency exam designed for academic and professional admissions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source