Duolingo, Inc. $DUOL Shares Purchased by Baird Financial Group Inc.

Key Points

• Baird Financial Group increased its Duolingo stake by 881.9% in the second quarter, purchasing 62,270 additional shares to hold 69,331 shares worth approximately $7.98 million. Institutional investors and hedge funds collectively own 91.59% of the stock.
• Duolingo reported quarterly earnings of $0.66 per share, exceeding estimates of $0.60, while revenue rose 18.3% year over year to $298.45 million. The company posted a 35.88% net margin and analysts expect full-year earnings of $2.62 per share.
• Analyst sentiment remains cautious, with the stock carrying a consensus “Hold” rating and an average price target of $124.38, below its reported opening price of $143.68. Recent insider sales were conducted under pre-arranged plans to cover tax obligations.

Baird Financial Group Inc. boosted its holdings in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 881.9% during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 69,331 shares of the company's stock after purchasing an additional 62,270 shares during the quarter. Baird Financial Group Inc. owned approximately 0.15% of Duolingo worth $7,975,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in the business. Meiji Yasuda Asset Management Co Ltd. grew its position in shares of Duolingo by 3.5% during the second quarter. Meiji Yasuda Asset Management Co Ltd. now owns 940 shares of the company's stock worth $385,000 after buying an additional 32 shares in the last quarter. Evergreen Capital Management LLC raised its holdings in Duolingo by 5.0% in the second quarter. Evergreen Capital Management LLC now owns 818 shares of the company's stock valued at $335,000 after acquiring an additional 39 shares in the last quarter. Public Employees Retirement System of Ohio boosted its stake in Duolingo by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 11,740 shares of the company's stock valued at $3,778,000 after acquiring an additional 73 shares during the last quarter. Northwestern Mutual Investment Management Company LLC boosted its stake in Duolingo by 1.2% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 8,953 shares of the company's stock valued at $1,571,000 after acquiring an additional 105 shares during the last quarter. Finally, Banque Cantonale Vaudoise grew its holdings in Duolingo by 51.1% during the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company's stock worth $34,000 after acquiring an additional 115 shares in the last quarter. 91.59% of the stock is owned by institutional investors and hedge funds.

Duolingo Price Performance

Shares of Duolingo stock opened at $143.68 on Monday. The company has a current ratio of 2.72, a quick ratio of 2.72 and a debt-to-equity ratio of 0.06. The business's 50 day simple moving average is $137.76 and its 200-day simple moving average is $118.11. The stock has a market capitalization of $6.72 billion, a price-to-earnings ratio of 17.02, a PEG ratio of 1.18 and a beta of 0.89. Duolingo, Inc. has a twelve month low of $87.89 and a twelve month high of $353.00.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.06. The firm had revenue of $298.45 million for the quarter, compared to analyst estimates of $295.58 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The firm's revenue for the quarter was up 18.3% on a year-over-year basis. During the same period last year, the company earned $0.91 earnings per share. Equities research analysts forecast that Duolingo, Inc. will post 2.62 earnings per share for the current year.

Insider Activity

In other news, insider Natalie Glance sold 2,751 shares of Duolingo stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $129.13, for a total transaction of $355,236.63. Following the sale, the insider owned 170,650 shares of the company's stock, valued at approximately $22,036,034.50. The trade was a 1.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, 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, General Counsel Stephen C. Chen sold 1,024 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $129.13, for a total value of $132,229.12. Following the transaction, the general counsel owned 51,841 shares of the company's stock, valued at approximately $6,694,228.33. This represents a 1.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 16,668 shares of company stock valued at $2,331,082. Company insiders own 16.62% of the company's stock.

Key Headlines Impacting Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo reportedly retains 68% of users, a level highlighted as stronger than retention at popular mobile games such as Candy Crush and Royal Match. The comparison reinforces the platform’s engagement and could support the company’s subscription growth story. Duolingo user retention article
• Positive Sentiment: Duolingo received widespread free publicity after Apple introduced a foldable phone called the “iPhone Duo.” The company’s humorous social-media response, including exchanges with Samsung, generated substantial meme coverage and may increase brand awareness and engagement, although no immediate financial benefit was quantified. iPhone Duo memes article
• Positive Sentiment: A new Duolingo clothing line tied to language and pronunciation is expanding the brand beyond its core learning app. The initiative could create additional marketing reach and potential merchandise revenue, though its financial impact remains uncertain. Duolingo clothing line article
• Neutral Sentiment: Director William Gordon sold 10,000 shares for approximately $1.46 million, reducing his position by 12.75%. Because the transaction was conducted under a pre-arranged Rule 10b5-1 plan, it is a limited discretionary signal, but it may still weigh modestly on sentiment. SEC insider transaction filing
• Negative Sentiment: A widely circulated CEO account claiming ChatGPT taught him Spanish more effectively than Duolingo highlights the competitive threat from AI language-learning tools. Although anecdotal, the commentary could raise concerns about Duolingo’s long-term differentiation and weigh on the stock. ChatGPT language-learning article

Analysts Set New Price Targets

DUOL has been the subject of several research analyst reports. JPMorgan Chase & Co. boosted their target price on shares of Duolingo from $125.00 to $135.00 and gave the stock a "neutral" rating in a research report on Thursday, August 27th. Wall Street Zen raised shares of Duolingo from a "sell" rating to a "hold" rating in a research report on Sunday, August 16th. Susquehanna began coverage on Duolingo in a research note on Tuesday, August 18th. They issued a "positive" rating for the company. Weiss Ratings upgraded Duolingo from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, June 18th. Finally, Wedbush upped their price objective on Duolingo from $139.00 to $150.00 and gave the company a "neutral" rating in a research note on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $124.38.

About Duolingo

Duolingo, Inc develops digital learning products designed to make education accessible through mobile devices and the web. Its primary product is the Duolingo language-learning platform, which offers courses in numerous languages through interactive, game-like lessons, practice exercises and personalized learning features.

The company also provides the Duolingo English Test, an online English-proficiency assessment used by educational institutions and other organizations. In addition, Duolingo has expanded beyond language learning with products such as Duolingo Math and Duolingo Music, while offering premium subscription features through plans including Super Duolingo and Duolingo Max.

Duolingo serves users internationally, with its applications and online services available across a broad range of geographies.

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.