Duolingo's (DUOL) Neutral Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed Duolingo as “neutral” and set a $120 price target, which implies a slight downside from the stock’s current level. Other firms are also mostly cautious, with the consensus rating at Hold.
• Duolingo last reported strong quarterly results, beating EPS and revenue expectations and posting 26.5% year-over-year revenue growth. Analysts expect the company to earn $2.76 per share for the current fiscal year.
• The stock was trading at $121.49 with a market cap of $5.66 billion, and insiders have sold shares in recent months. Institutional ownership remains high at 91.59%.

Duolingo (NASDAQ:DUOL - Get Free Report)'s stock had its "neutral" rating reiterated by DA Davidson in a note issued to investors on Monday,Benzinga reports. They currently have a $120.00 target price on the stock. DA Davidson's price objective suggests a potential downside of 1.23% from the stock's current price.

DUOL has been the subject of a number of other reports. UBS Group reiterated a "neutral" rating on shares of Duolingo in a research note on Wednesday, June 17th. Barclays decreased their target price on Duolingo from $230.00 to $110.00 and set an "equal weight" rating for the company in a research report on Monday, March 2nd. Weiss Ratings upgraded Duolingo from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, June 18th. JPMorgan Chase & Co. raised their price objective on Duolingo from $92.00 to $94.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 5th. Finally, Zacks Research raised shares of Duolingo from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Two analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Duolingo currently has a consensus rating of "Hold" and an average price target of $175.41.

Duolingo Price Performance

Shares of NASDAQ DUOL opened at $121.49 on Monday. The company has a quick ratio of 2.62, a current ratio of 2.62 and a debt-to-equity ratio of 0.07. Duolingo has a fifty-two week low of $87.89 and a fifty-two week high of $468.00. The business has a 50 day moving average price of $112.45 and a two-hundred day moving average price of $125.30. The firm has a market cap of $5.66 billion, a PE ratio of 13.95, a price-to-earnings-growth ratio of 0.94 and a beta of 0.89.

Duolingo (NASDAQ:DUOL - Get Free Report) last announced its earnings results on Monday, May 4th. The company reported $0.89 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.79 by $0.10. Duolingo had a return on equity of 14.07% and a net margin of 38.44%.The company had revenue of $291.97 million for the quarter, compared to analyst estimates of $288.60 million. During the same period in the prior year, the company posted $0.72 EPS. Duolingo's quarterly revenue was up 26.5% on a year-over-year basis. Sell-side analysts expect that Duolingo will post 2.76 earnings per share for the current fiscal year.

Insider Activity at Duolingo

In other Duolingo news, General Counsel Stephen C. Chen sold 1,977 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $113.61, for a total value of $224,606.97. Following the sale, the general counsel directly owned 52,807 shares in the company, valued at approximately $5,999,403.27. This trade represents a 3.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Natalie Glance sold 3,360 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $113.59, for a total transaction of $381,662.40. Following the transaction, the insider directly owned 173,401 shares of the company's stock, valued at approximately $19,696,619.59. This trade represents a 1.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 9,506 shares of company stock worth $1,073,864 in the last 90 days. 16.62% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Duolingo

Several institutional investors have recently modified their holdings of the company. KERR FINANCIAL PLANNING Corp acquired a new position in Duolingo during the 3rd quarter valued at about $47,000. EFG International AG acquired a new stake in shares of Duolingo in the fourth quarter valued at approximately $26,000. Globeflex Capital L P acquired a new stake in shares of Duolingo in the second quarter valued at approximately $77,000. AlphaCentric Advisors LLC bought a new stake in shares of Duolingo during the fourth quarter valued at approximately $33,000. Finally, Huntington National Bank raised its holdings in shares of Duolingo by 103.0% during the third quarter. Huntington National Bank now owns 205 shares of the company's stock valued at $66,000 after buying an additional 104 shares during the last quarter. Institutional investors own 91.59% of the company's stock.

Duolingo Company Profile

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.

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