Militia Capital Management LLC Invests $1.09 Million in Duolingo, Inc. $DUOL

Key Points

• Militia Capital Management opened a new position in Duolingo during the first quarter, buying 11,043 shares worth about $1.09 million.
• Duolingo’s latest earnings beat expectations, with EPS of $0.89 and revenue of $291.97 million, while revenue rose 26.5% year over year.
• Several analysts have recently raised price targets on Duolingo, but the stock still carries an overall Hold consensus rating.

Militia Capital Management LLC acquired a new stake in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 11,043 shares of the company's stock, valued at approximately $1,089,000.

Several other hedge funds have also made changes to their positions in DUOL. Root Financial Partners LLC raised its holdings in Duolingo by 194.1% in the 1st quarter. Root Financial Partners LLC now owns 250 shares of the company's stock valued at $25,000 after acquiring an additional 165 shares in the last quarter. EFG International AG acquired a new stake in shares of Duolingo during the 4th quarter worth approximately $26,000. AlphaCentric Advisors LLC bought a new stake in shares of Duolingo during the fourth quarter valued at approximately $33,000. Banque Cantonale Vaudoise increased its position in shares of Duolingo by 51.1% during the first quarter. Banque Cantonale Vaudoise now owns 340 shares of the company's stock valued at $34,000 after purchasing an additional 115 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Duolingo in the fourth quarter valued at $43,000. Institutional investors own 91.59% of the company's stock.

Insider Buying and Selling at Duolingo

In other news, General Counsel Stephen C. Chen sold 1,977 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $113.61, for a total transaction of $224,606.97. Following the sale, the general counsel owned 52,807 shares in the company, valued at approximately $5,999,403.27. This represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 Robert Meese sold 1,420 shares of the firm's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $112.16, for a total value of $159,267.20. Following the completion of the sale, the insider owned 170,745 shares of the company's stock, valued at approximately $19,150,759.20. This trade represents a 0.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 9,506 shares of company stock worth $1,073,864. 16.62% of the stock is currently owned by insiders.

Duolingo Price Performance

Shares of Duolingo stock opened at $120.67 on Friday. The stock has a market capitalization of $5.62 billion, a price-to-earnings ratio of 13.89, a P/E/G ratio of 0.91 and a beta of 0.88. The firm's 50-day moving average price is $120.42 and its two-hundred day moving average price is $117.41. The company has a current ratio of 2.62, a quick ratio of 2.62 and a debt-to-equity ratio of 0.07. Duolingo, Inc. has a 1-year low of $87.89 and a 1-year high of $468.00.

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, beating analysts' consensus estimates of $0.79 by $0.10. The company had revenue of $291.97 million during the quarter, compared to analysts' expectations of $288.60 million. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. Duolingo's quarterly revenue was up 26.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.72 earnings per share. On average, equities analysts predict that Duolingo, Inc. will post 2.81 earnings per share for the current fiscal year.

Analyst Ratings Changes

DUOL has been the subject of several research reports. Morgan Stanley raised their target price on Duolingo from $95.00 to $125.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 16th. Zacks Research raised shares of Duolingo from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. JPMorgan Chase & Co. increased their price objective on shares of Duolingo from $94.00 to $125.00 and gave the company a "neutral" rating in a research note on Friday, July 17th. Jefferies Financial Group raised their price objective on shares of Duolingo from $95.00 to $125.00 and gave the stock a "hold" rating in a report on Tuesday, July 14th. Finally, Wells Fargo & Company lifted their target price on shares of Duolingo from $81.00 to $82.00 and gave the company an "underweight" rating in a research report on Tuesday, July 7th. Two analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $167.17.

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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