Dragoneer Investment Group LLC Sells 420,900 Shares of Duolingo, Inc. $DUOL

Key Points

• Dragoneer Investment Group cut its Duolingo stake by 26.6% in the fourth quarter, selling 420,900 shares and leaving it with 1,159,887 shares valued at about $203.6 million.
• Duolingo reported strong quarterly results, with EPS of $0.89 beating estimates and revenue of $291.97 million, up 26.5% year over year.
• Market sentiment remains mixed: analysts currently have a Hold consensus on DUOL, while insiders have also been selling shares in recent months.

Dragoneer Investment Group LLC lessened its stake in Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 26.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,159,887 shares of the company's stock after selling 420,900 shares during the period. Duolingo makes up approximately 4.4% of Dragoneer Investment Group LLC's holdings, making the stock its 11th largest position. Dragoneer Investment Group LLC owned about 2.51% of Duolingo worth $203,560,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in DUOL. AlphaCentric Advisors LLC bought a new stake in Duolingo in the 4th quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd bought a new stake in Duolingo in the 4th quarter worth approximately $43,000. KERR FINANCIAL PLANNING Corp bought a new stake in Duolingo in the 3rd quarter worth approximately $47,000. Advisors Asset Management Inc. grew its position in Duolingo by 152.5% in the 4th quarter. Advisors Asset Management Inc. now owns 298 shares of the company's stock worth $52,000 after purchasing an additional 180 shares during the period. Finally, Generali Investments Towarzystwo Funduszy Inwestycyjnych grew its position in Duolingo by 59.1% in the 4th quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 350 shares of the company's stock worth $61,000 after purchasing an additional 130 shares during the period. Institutional investors own 91.59% of the company's stock.

Duolingo Price Performance

Shares of DUOL stock opened at $128.07 on Wednesday. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.62 and a quick ratio of 2.62. The firm's 50-day moving average is $107.33 and its two-hundred day moving average is $128.98. Duolingo, Inc. has a 12 month low of $87.89 and a 12 month high of $483.03. The company has a market capitalization of $5.97 billion, a PE ratio of 14.74, a price-to-earnings-growth ratio of 0.96 and a beta of 0.89.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its earnings results on Monday, May 4th. The company reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.79 by $0.10. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The company had revenue of $291.97 million for the quarter, compared to the consensus estimate of $288.60 million. During the same period in the previous year, the firm earned $0.72 earnings per share. Duolingo's quarterly revenue was up 26.5% compared to the same quarter last year. Analysts predict that Duolingo, Inc. will post 2.84 earnings per share for the current year.

Insiders Place Their Bets

In other Duolingo news, General Counsel Stephen C. Chen sold 1,977 shares of Duolingo stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $113.61, for a total transaction of $224,606.97. Following the transaction, the general counsel directly owned 52,807 shares of the company's stock, valued at $5,999,403.27. The trade was a 3.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 Robert Meese sold 1,420 shares of Duolingo stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $112.16, for a total transaction of $159,267.20. Following the transaction, the insider directly owned 170,745 shares in the company, valued at $19,150,759.20. This trade represents a 0.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 9,506 shares of company stock valued at $1,073,864 over the last ninety days. Company insiders own 16.62% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have commented on DUOL shares. Zacks Research raised shares of Duolingo from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. DA Davidson lifted their target price on shares of Duolingo from $90.00 to $120.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 9th. Weiss Ratings downgraded shares of Duolingo from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, April 22nd. The Goldman Sachs Group cut their target price on shares of Duolingo from $250.00 to $105.00 and set a "neutral" rating for the company in a research report on Monday, March 2nd. Finally, Morgan Stanley decreased their price target on shares of Duolingo from $100.00 to $95.00 and set an "equal weight" rating on the stock in a research note on Tuesday, May 5th. Three investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Duolingo presently has a consensus rating of "Hold" and a consensus target price of $197.61.

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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