Mitchell Capital Management Co. Makes New Investment in Duolingo, Inc. $DUOL

Key Points

• Mitchell Capital Management opened a new position in Duolingo in Q3, buying 14,259 shares valued at approximately $4.59 million.
• Analyst sentiment has cooled with several banks cutting price targets (JPMorgan $300→$200, Goldman Sachs $425→$250, Barclays $390→$230); the consensus rating is "Hold" with a $300.25 consensus price target.
• Insiders have been net sellers—33,169 shares worth about $5.83 million sold in the past three months—while insiders own 15.67% of the company and institutional investors hold 91.59% of the stock.

Mitchell Capital Management Co. acquired a new position in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 14,259 shares of the company's stock, valued at approximately $4,589,000.

Several other institutional investors and hedge funds have also modified their holdings of DUOL. Kiker Wealth Management LLC acquired a new stake in Duolingo during the 2nd quarter valued at $31,000. Atlantic Union Bankshares Corp acquired a new position in Duolingo in the third quarter worth $32,000. Emerald Mutual Fund Advisers Trust bought a new stake in shares of Duolingo during the second quarter worth $40,000. Farther Finance Advisors LLC grew its holdings in shares of Duolingo by 82.2% during the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company's stock worth $43,000 after purchasing an additional 60 shares during the last quarter. Finally, Cornerstone Planning Group LLC increased its stake in shares of Duolingo by 8,900.0% in the third quarter. Cornerstone Planning Group LLC now owns 180 shares of the company's stock valued at $58,000 after buying an additional 178 shares in the last quarter. 91.59% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts have commented on DUOL shares. Citigroup reissued a "market perform" rating on shares of Duolingo in a report on Monday, January 12th. JPMorgan Chase & Co. decreased their price target on shares of Duolingo from $300.00 to $200.00 and set an "overweight" rating on the stock in a research note on Tuesday, January 20th. The Goldman Sachs Group lowered their price target on shares of Duolingo from $425.00 to $250.00 and set a "neutral" rating for the company in a report on Friday, November 7th. Citizens Jmp downgraded Duolingo from a "market outperform" rating to a "hold" rating in a report on Thursday, November 6th. Finally, Barclays decreased their price objective on Duolingo from $390.00 to $230.00 and set an "equal weight" rating on the stock in a research report on Thursday, November 6th. Twelve research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $300.25.

Duolingo Stock Performance

Shares of DUOL stock opened at $109.30 on Thursday. The stock has a market cap of $5.05 billion, a PE ratio of 13.85, a price-to-earnings-growth ratio of 0.65 and a beta of 0.86. The stock has a 50-day moving average of $164.36 and a 200-day moving average of $243.63. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.82 and a quick ratio of 2.82. Duolingo, Inc. has a one year low of $107.16 and a one year high of $544.93.

Insider Activity

In related news, General Counsel Stephen C. Chen sold 1,514 shares of the company's stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $175.87, for a total value of $266,267.18. Following the completion of the sale, the general counsel owned 31,542 shares in the company, valued at $5,547,291.54. This represents a 4.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Severin Hacker sold 10,000 shares of the company's stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $172.74, for a total transaction of $1,727,400.00. Following the completion of the sale, the insider owned 72 shares of the company's stock, valued at approximately $12,437.28. This represents a 99.29% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 33,169 shares of company stock worth $5,826,651 over the last three months. Company insiders own 15.67% of the company's stock.

Duolingo 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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