Duolingo, Inc. (NASDAQ:DUOL) Stock Holdings Cut by Baillie Gifford & Co.

Key Points

• Baillie Gifford & Co. has reduced its holdings in Duolingo by 9.6%, now owning approximately 2.48 million shares valued at about $769 million.
• Several large investors, including Larson Financial Group and Fifth Third Bancorp, have increased their positions in Duolingo, reflecting growing confidence in the stock.
• Analysts have set a consensus target price for Duolingo at $435.87, with multiple firms issuing buy ratings, indicating expectations of future growth.

Baillie Gifford & Co. cut its stake in Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 9.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,477,752 shares of the company's stock after selling 262,350 shares during the quarter. Baillie Gifford & Co. owned about 5.48% of Duolingo worth $769,441,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Contravisory Investment Management Inc. purchased a new position in Duolingo in the first quarter valued at about $25,000. Quarry LP lifted its stake in shares of Duolingo by 250.0% in the fourth quarter. Quarry LP now owns 91 shares of the company's stock worth $30,000 after acquiring an additional 65 shares in the last quarter. Garde Capital Inc. acquired a new position in shares of Duolingo in the first quarter worth about $31,000. Whittier Trust Co. acquired a new position in shares of Duolingo in the first quarter worth about $33,000. Finally, Versant Capital Management Inc lifted its stake in shares of Duolingo by 323.1% in the first quarter. Versant Capital Management Inc now owns 110 shares of the company's stock worth $34,000 after acquiring an additional 84 shares in the last quarter. 91.59% of the stock is owned by hedge funds and other institutional investors.

Duolingo Stock Performance

DUOL stock traded down $4.87 on Tuesday, reaching $335.62. The company's stock had a trading volume of 523,732 shares, compared to its average volume of 885,993. Duolingo, Inc. has a 52 week low of $145.05 and a 52 week high of $544.93. The company has a market capitalization of $15.25 billion, a P/E ratio of 164.82, a price-to-earnings-growth ratio of 2.80 and a beta of 0.89. The firm has a fifty day moving average of $441.31 and a two-hundred day moving average of $391.63. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.68 and a quick ratio of 2.68.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its quarterly earnings data on Thursday, May 1st. The company reported $0.72 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.52 by $0.20. The business had revenue of $230.74 million during the quarter, compared to analyst estimates of $223.15 million. Duolingo had a return on equity of 11.70% and a net margin of 11.93%. Duolingo's revenue for the quarter was up 37.6% compared to the same quarter last year. As a group, analysts predict that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms recently commented on DUOL. UBS Group reiterated an "overweight" rating on shares of Duolingo in a research note on Thursday, May 22nd. The Goldman Sachs Group boosted their price target on Duolingo from $340.00 to $403.00 and gave the stock a "neutral" rating in a research note on Monday, May 5th. Needham & Company LLC upped their price objective on Duolingo from $400.00 to $460.00 and gave the company a "buy" rating in a research note on Friday, May 2nd. Barclays upped their price objective on Duolingo from $330.00 to $375.00 and gave the company an "equal weight" rating in a research note on Friday, May 2nd. Finally, DA Davidson cut their price objective on Duolingo from $600.00 to $500.00 and set a "buy" rating on the stock in a research note on Wednesday, June 25th. Five analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $450.87.

Insider Transactions at Duolingo

In other Duolingo news, insider Severin Hacker sold 10,000 shares of the stock in a transaction on Monday, July 21st. The stock was sold at an average price of $360.33, for a total transaction of $3,603,300.00. Following the completion of the transaction, the insider directly owned 72 shares of the company's stock, valued at approximately $25,943.76. This trade represents a 99.29% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last three months, insiders sold 50,000 shares of company stock worth $22,454,700. Company insiders own 18.30% of the company's stock.

About Duolingo

Duolingo, Inc operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam.