Federated Hermes Inc. Reduces Stock Position in Duolingo, Inc. $DUOL

Key Points

• Federated Hermes Inc. trimmed its Duolingo stake by 51.3% in Q3, selling 174,605 shares and finishing with 165,839 shares worth about $53.37 million (roughly 0.36% of the company).
• Duolingo reported a blowout quarter on Nov. 5, posting $5.95 EPS vs. $0.72 expected and $271.7 million in revenue (up 41.1% year‑over‑year) with a ~40% net margin.
• Institutional ownership is high (~91.6%) while insiders have sold ~43,169 shares in the last 90 days, and analysts' consensus sits at a "Hold" with an average target price of $301.75.

Federated Hermes Inc. trimmed its position in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 51.3% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 165,839 shares of the company's stock after selling 174,605 shares during the quarter. Federated Hermes Inc. owned 0.36% of Duolingo worth $53,374,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently modified their holdings of the company. Truist Financial Corp increased its position in Duolingo by 36.9% during the third quarter. Truist Financial Corp now owns 6,143 shares of the company's stock valued at $1,977,000 after acquiring an additional 1,656 shares during the last quarter. EFG Asset Management North America Corp. boosted its holdings in shares of Duolingo by 41.3% in the third quarter. EFG Asset Management North America Corp. now owns 5,869 shares of the company's stock worth $1,891,000 after buying an additional 1,716 shares during the last quarter. Belpointe Asset Management LLC grew its position in Duolingo by 109.1% during the third quarter. Belpointe Asset Management LLC now owns 2,378 shares of the company's stock valued at $765,000 after buying an additional 1,241 shares during the period. Generali Investments Towarzystwo Funduszy Inwestycyjnych increased its holdings in Duolingo by 22.2% during the third quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 220 shares of the company's stock valued at $71,000 after buying an additional 40 shares during the last quarter. Finally, First Citizens Bank & Trust Co. raised its position in Duolingo by 97.1% in the third quarter. First Citizens Bank & Trust Co. now owns 2,969 shares of the company's stock worth $956,000 after acquiring an additional 1,463 shares during the period. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

Duolingo Stock Performance

NASDAQ DUOL opened at $139.47 on Friday. The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.07. Duolingo, Inc. has a twelve month low of $136.99 and a twelve month high of $544.93. The business has a 50-day moving average price of $175.50 and a 200-day moving average price of $259.72. The firm has a market cap of $6.45 billion, a price-to-earnings ratio of 17.68, a price-to-earnings-growth ratio of 0.76 and a beta of 0.87.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its earnings results on Wednesday, November 5th. The company reported $5.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $5.23. Duolingo had a return on equity of 14.02% and a net margin of 40.03%.The company had revenue of $271.71 million for the quarter, compared to the consensus estimate of $260.14 million. During the same quarter last year, the company earned $0.49 EPS. The firm's quarterly revenue was up 41.1% on a year-over-year basis. As a group, equities research analysts predict that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on DUOL shares. Weiss Ratings reissued a "hold (c)" rating on shares of Duolingo in a research report on Monday, December 29th. Citizens Jmp lowered Duolingo from a "market outperform" rating to a "hold" rating in a report on Thursday, November 6th. KeyCorp downgraded Duolingo from an "overweight" rating to a "sector weight" rating in a research note on Thursday, November 6th. JPMorgan Chase & Co. cut their price objective on Duolingo from $300.00 to $200.00 and set an "overweight" rating for the company in a research note on Tuesday, January 20th. Finally, Morgan Stanley reduced their target price on shares of Duolingo from $300.00 to $275.00 and set an "overweight" rating for the company in a report on Tuesday, January 13th. Twelve analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Duolingo currently has an average rating of "Hold" and an average target price of $301.75.

Insider Activity at Duolingo

In other Duolingo news, insider Natalie Glance sold 2,471 shares of the business's stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $175.79, for a total value of $434,377.09. Following the sale, the insider owned 111,166 shares in the company, valued at $19,541,871.14. The trade was a 2.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Stephen C. Chen sold 1,514 shares of the stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $175.87, for a total transaction of $266,267.18. Following the transaction, the general counsel directly owned 31,542 shares of the company's stock, valued at $5,547,291.54. This trade represents a 4.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 43,169 shares of company stock valued at $8,457,951. 15.67% of the stock is currently owned by insiders.

About Duolingo

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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