Caxton Associates LLP Buys 35,541 Shares of Duolingo, Inc. $DUOL

Key Points

• Caxton Associates LLP increased its Duolingo stake by 2,526% in the first quarter, ending with 36,948 shares valued at about $3.64 million.
• Several other hedge funds also boosted or initiated positions in Duolingo, and 91.59% of the stock is owned by institutional investors.
• Duolingo’s latest quarter beat expectations, with EPS of $0.89 versus $0.79 expected and revenue rising 26.5% year over year; however, analysts mostly remain cautious, with a consensus Hold rating.

Caxton Associates LLP raised its stake in Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 2,526.0% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 36,948 shares of the company's stock after purchasing an additional 35,541 shares during the period. Caxton Associates LLP owned 0.08% of Duolingo worth $3,642,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also modified their holdings of the company. Baillie Gifford & Co. grew its stake in Duolingo by 71.9% in the fourth quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company's stock valued at $853,184,000 after purchasing an additional 2,033,611 shares in the last quarter. Lingotto Investment Management LLP raised its stake in shares of Duolingo by 34.3% during the 4th quarter. Lingotto Investment Management LLP now owns 33,563 shares of the company's stock worth $5,890,000 after purchasing an additional 8,563 shares in the last quarter. Dream Peak Capital Ltd acquired a new stake in shares of Duolingo during the 4th quarter valued at about $18,345,000. Landscape Capital Management L.L.C. acquired a new stake in shares of Duolingo during the 4th quarter valued at about $3,752,000. Finally, Peregrine Capital Management LLC grew its stake in shares of Duolingo by 50.3% in the 4th quarter. Peregrine Capital Management LLC now owns 129,515 shares of the company's stock valued at $22,730,000 after buying an additional 43,352 shares in the last quarter. 91.59% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Duolingo

In other news, insider Natalie Glance sold 3,360 shares of the firm's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $113.59, for a total value of $381,662.40. Following the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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, General Counsel Stephen C. Chen sold 1,977 shares of Duolingo stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $113.61, for a total value of $224,606.97. Following the completion of the transaction, the general counsel owned 52,807 shares in the company, valued at $5,999,403.27. The trade was a 3.61% decrease in their ownership of the stock. 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 over the last ninety days. Company insiders own 16.62% of the company's stock.

Analysts Set New Price Targets

DUOL has been the topic of a number of research reports. Evercore set a $97.00 price objective on Duolingo in a report on Tuesday, May 5th. Wells Fargo & Company lifted their target price on shares of Duolingo from $81.00 to $82.00 and gave the company an "underweight" rating in a research note on Tuesday, July 7th. Morgan Stanley boosted their target price on shares of Duolingo from $95.00 to $125.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 16th. DA Davidson restated a "neutral" rating and set a $120.00 price target on shares of Duolingo in a research note on Monday, June 29th. Finally, JPMorgan Chase & Co. raised their price target on shares of Duolingo from $94.00 to $125.00 and gave the company a "neutral" rating in a report on Friday, July 17th. Two analysts have rated the stock with a Buy rating, twenty have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Duolingo has an average rating of "Hold" and an average target price of $167.17.

Duolingo Trading Up 1.0%

NASDAQ:DUOL opened at $120.67 on Friday. Duolingo, Inc. has a 12 month low of $87.89 and a 12 month high of $468.00. The firm has a market cap of $5.62 billion, a price-to-earnings ratio of 13.89, a P/E/G ratio of 0.91 and a beta of 0.88. The company has a quick ratio of 2.62, a current ratio of 2.62 and a debt-to-equity ratio of 0.07. The company's 50 day moving average is $120.42 and its 200-day moving average is $117.41.

Duolingo (NASDAQ:DUOL - Get Free Report) last posted its quarterly earnings data on Monday, May 4th. The company reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.10. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The business had revenue of $291.97 million during the quarter, compared to the consensus estimate of $288.60 million. During the same period in the prior year, the firm earned $0.72 EPS. Duolingo's quarterly revenue was up 26.5% compared to the same quarter last year. Equities analysts anticipate that Duolingo, Inc. will post 2.81 EPS for the current year.

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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