Federated Hermes Inc. Decreases Stake in Duolingo, Inc. (NASDAQ:DUOL)

Key Points

• Federated Hermes Inc. reduced its stake in Duolingo, Inc. by 28.4%, selling 99,848 shares and now holds approximately 0.56% of the company, valued at $78 million.
• Institutional investors own 91.59% of Duolingo, with FMR LLC increasing its holdings by 39.9% in the last quarter.
• Duolingo's stock currently has an average rating of "Moderate Buy", with a target price of $450.87 as assessed by analysts.

Federated Hermes Inc. lowered its holdings in Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 28.4% in the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 251,383 shares of the company's stock after selling 99,848 shares during the quarter. Federated Hermes Inc. owned approximately 0.56% of Duolingo worth $78,064,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the company. Congress Asset Management Co. bought a new position in Duolingo during the 1st quarter valued at approximately $15,430,000. TD Asset Management Inc increased its holdings in shares of Duolingo by 12.7% in the 1st quarter. TD Asset Management Inc now owns 107,520 shares of the company's stock worth $33,389,000 after purchasing an additional 12,138 shares in the last quarter. SBI Securities Co. Ltd. increased its holdings in shares of Duolingo by 41.1% in the 1st quarter. SBI Securities Co. Ltd. now owns 4,158 shares of the company's stock worth $1,291,000 after purchasing an additional 1,211 shares in the last quarter. Catalyst Capital Advisors LLC increased its holdings in shares of Duolingo by 12.6% in the 1st quarter. Catalyst Capital Advisors LLC now owns 6,925 shares of the company's stock worth $2,150,000 after purchasing an additional 775 shares in the last quarter. Finally, BNP Paribas Financial Markets bought a new stake in shares of Duolingo in the 4th quarter worth $9,708,000. Institutional investors own 91.59% of the company's stock.

Duolingo Price Performance

Shares of NASDAQ DUOL traded down $7.56 during mid-day trading on Friday, reaching $338.99. The company's stock had a trading volume of 1,016,029 shares, compared to its average volume of 899,971. The firm has a market capitalization of $15.41 billion, a PE ratio of 166.99, a P/E/G ratio of 2.66 and a beta of 0.87. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.68 and a quick ratio of 2.68. The stock has a fifty day moving average of $430.58 and a two-hundred day moving average of $391.09. Duolingo, Inc. has a 52 week low of $145.05 and a 52 week high of $544.93.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its quarterly earnings data on Thursday, May 1st. The company reported $0.72 earnings per share for the quarter, topping analysts' consensus estimates of $0.52 by $0.20. The firm 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%. The business's revenue for the quarter was up 37.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Piper Sandler set a $375.00 price target on Duolingo in a research note on Friday, May 2nd. UBS Group restated an "overweight" rating on shares of Duolingo in a research note on Thursday, May 22nd. DA Davidson dropped their price target on Duolingo from $600.00 to $500.00 and set a "buy" rating on the stock in a research note on Wednesday, June 25th. Scotiabank raised their price target on Duolingo from $405.00 to $470.00 and gave the stock a "sector outperform" rating in a research note on Friday, May 2nd. Finally, Barclays raised their price target on Duolingo from $330.00 to $375.00 and gave the stock an "equal weight" rating in a research note on Friday, May 2nd. Five equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $450.87.

Insider Activity at Duolingo

In related news, insider Severin Hacker sold 10,000 shares of the business's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $360.33, for a total value of $3,603,300.00. Following the sale, the insider directly owned 72 shares in the company, valued at approximately $25,943.76. The trade was a 99.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders sold 50,000 shares of company stock valued at $22,454,700 in the last quarter. 15.67% of the stock is currently owned by insiders.

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.