Duolingo, Inc. $DUOL Shares Sold by Durable Capital Partners LP

Key Points

• Durable Capital Partners LP reduced its stake in Duolingo, Inc. by 26.9%, selling 625,011 shares, and now owns about 1.69 million shares valued at approximately $526 million.
• Institutional investors and hedge funds collectively hold 91.59% of Duolingo's stock, with significant increases in holdings from firms like Invesco Ltd. and T. Rowe Price Investment Management.
• Duolingo reported a quarterly EPS of $0.91, exceeding estimates, with revenues reaching $252.27 million, marking a year-over-year growth of 41.5%.

Durable Capital Partners LP reduced its stake in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 26.9% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,694,283 shares of the company's stock after selling 625,011 shares during the quarter. Duolingo makes up 4.7% of Durable Capital Partners LP's holdings, making the stock its 2nd largest position. Durable Capital Partners LP owned 3.73% of Duolingo worth $526,143,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Duolingo by 20.5% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 153 shares of the company's stock worth $48,000 after purchasing an additional 26 shares during the last quarter. Crossmark Global Holdings Inc. lifted its stake in shares of Duolingo by 1.2% during the 1st quarter. Crossmark Global Holdings Inc. now owns 2,942 shares of the company's stock worth $914,000 after purchasing an additional 34 shares during the last quarter. Larson Financial Group LLC lifted its stake in shares of Duolingo by 24.4% during the 1st quarter. Larson Financial Group LLC now owns 199 shares of the company's stock worth $62,000 after purchasing an additional 39 shares during the last quarter. Fifth Third Bancorp lifted its stake in shares of Duolingo by 20.4% during the 1st quarter. Fifth Third Bancorp now owns 313 shares of the company's stock worth $97,000 after purchasing an additional 53 shares during the last quarter. Finally, Signaturefd LLC lifted its stake in shares of Duolingo by 90.1% during the 1st quarter. Signaturefd LLC now owns 135 shares of the company's stock worth $42,000 after purchasing an additional 64 shares during the last quarter. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, General Counsel Stephen C. Chen sold 1,515 shares of the firm's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $321.36, for a total value of $486,860.40. Following the transaction, the general counsel owned 32,638 shares in the company, valued at $10,488,547.68. This trade represents a 4.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Robert Meese sold 1,444 shares of the firm's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $329.03, for a total value of $475,119.32. Following the completion of the transaction, the insider owned 120,080 shares in the company, valued at approximately $39,509,922.40. This trade represents a 1.19% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 70,508 shares of company stock valued at $25,742,721. 18.30% of the stock is owned by corporate insiders.

Duolingo Price Performance

Shares of NASDAQ DUOL traded down $9.82 during midday trading on Thursday, hitting $272.70. The stock had a trading volume of 2,468,798 shares, compared to its average volume of 1,075,335. The company has a market capitalization of $12.50 billion, a PE ratio of 112.22, a P/E/G ratio of 1.99 and a beta of 0.85. The stock has a 50 day simple moving average of $354.07 and a 200-day simple moving average of $385.63. Duolingo, Inc. has a 1 year low of $204.00 and a 1 year high of $544.93. The company has a quick ratio of 2.81, a current ratio of 2.81 and a debt-to-equity ratio of 0.10.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.36. The business had revenue of $252.27 million for the quarter, compared to the consensus estimate of $240.84 million. Duolingo had a return on equity of 13.32% and a net margin of 13.24%.The business's quarterly revenue was up 41.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.51 earnings per share. On average, sell-side analysts expect that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Analyst Ratings Changes

Several research analysts recently issued reports on the company. Raymond James Financial reaffirmed a "market perform" rating on shares of Duolingo in a research report on Tuesday, August 26th. KeyCorp raised Duolingo from a "sector weight" rating to an "overweight" rating and set a $460.00 target price on the stock in a report on Monday, August 18th. Citigroup started coverage on Duolingo in a report on Monday, August 18th. They set a "buy" rating and a $400.00 target price on the stock. UBS Group reaffirmed an "overweight" rating on shares of Duolingo in a report on Thursday, May 22nd. Finally, DA Davidson lowered Duolingo from a "buy" rating to a "neutral" rating and dropped their target price for the stock from $500.00 to $300.00 in a report on Thursday. Twelve equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $439.59.

Duolingo Company Profile

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.