Investment House LLC Grows Holdings in Duolingo, Inc. $DUOL

Key Points

• Investment House LLC boosted its Duolingo stake by 250.7% in the fourth quarter, ending with 18,038 shares valued at about $3.17 million.
• Duolingo reported strong quarterly results, with EPS of $0.89 beating estimates and revenue rising 26.5% year over year to $291.97 million.
• Despite the earnings beat, the stock has faced mixed signals: insiders sold shares recently, and analysts currently rate the stock a Hold on average with a consensus target price of $195.94.

Investment House LLC raised its position in Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 250.7% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 18,038 shares of the company's stock after purchasing an additional 12,894 shares during the period. Investment House LLC's holdings in Duolingo were worth $3,166,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Atlantic Union Bankshares Corp purchased a new position in Duolingo in the 3rd quarter valued at about $32,000. KERR FINANCIAL PLANNING Corp acquired a new position in shares of Duolingo during the 3rd quarter valued at about $47,000. Cornerstone Planning Group LLC increased its stake in shares of Duolingo by 8,900.0% during the 3rd quarter. Cornerstone Planning Group LLC now owns 180 shares of the company's stock valued at $58,000 after acquiring an additional 178 shares during the last quarter. Globeflex Capital L P acquired a new position in shares of Duolingo during the 2nd quarter valued at about $77,000. Finally, Huntington National Bank increased its stake in shares of Duolingo by 103.0% during the 3rd quarter. Huntington National Bank now owns 205 shares of the company's stock valued at $66,000 after acquiring an additional 104 shares during the last quarter. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

Duolingo Stock Up 0.8%

DUOL opened at $114.10 on Wednesday. The firm has a 50 day moving average price of $101.15 and a 200 day moving average price of $141.61. The company has a market cap of $5.32 billion, a PE ratio of 13.13, a price-to-earnings-growth ratio of 0.86 and a beta of 0.90. Duolingo, Inc. has a 1 year low of $87.89 and a 1 year high of $540.30. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.62 and a current ratio of 2.62.

Duolingo (NASDAQ:DUOL - Get Free Report) last posted its earnings results on Monday, May 4th. The company reported $0.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.79 by $0.10. The firm had revenue of $291.97 million during the quarter, compared to the consensus estimate of $288.60 million. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The company's revenue was up 26.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.72 EPS. Sell-side analysts expect that Duolingo, Inc. will post 2.84 earnings per share for the current year.

Insider Activity

In other Duolingo news, General Counsel Stephen C. Chen sold 1,977 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $113.61, for a total value of $224,606.97. Following the completion of the sale, the general counsel owned 52,807 shares of the company's stock, valued at $5,999,403.27. This trade represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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, insider Natalie Glance sold 3,360 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $113.59, for a total transaction of $381,662.40. Following the completion of the sale, the insider directly owned 173,401 shares of the company's stock, valued at $19,696,619.59. This trade represents a 1.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 9,506 shares of company stock worth $1,073,864 over the last three months. Insiders own 16.62% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently commented on DUOL shares. The Goldman Sachs Group dropped their price objective on shares of Duolingo from $250.00 to $105.00 and set a "neutral" rating for the company in a research note on Monday, March 2nd. Evercore set a $97.00 price objective on shares of Duolingo in a research note on Tuesday, May 5th. Needham & Company LLC reaffirmed a "buy" rating and set a $145.00 price objective on shares of Duolingo in a research note on Tuesday, May 5th. JPMorgan Chase & Co. upped their price objective on shares of Duolingo from $92.00 to $94.00 and gave the company a "neutral" rating in a research note on Tuesday, May 5th. Finally, DA Davidson upped their price objective on shares of Duolingo from $85.00 to $90.00 and gave the company a "neutral" rating in a research note on Tuesday, May 5th. Three research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $195.94.

Duolingo Company Profile

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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