Nuveen LLC Invests $42.95 Million in Duolingo, Inc. $DUOL

Key Points

• Nuveen LLC has made a new investment of approximately $42.95 million in Duolingo, acquiring 138,308 shares, representing about 0.30% of the company's stock.
• Institutional ownership for Duolingo is high, with 91.59% of the company's stock held by institutional investors.
• Duolingo reported a significant increase in quarterly revenue, achieving $252.27 million with a 41.5% year-over-year growth and earnings per share of $0.91, exceeding analyst estimates.

Nuveen LLC acquired a new stake in Duolingo, Inc. (NASDAQ:DUOL - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 138,308 shares of the company's stock, valued at approximately $42,950,000. Nuveen LLC owned 0.30% of Duolingo as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also modified their holdings of DUOL. Jefferies Financial Group Inc. purchased a new stake in Duolingo during the 1st quarter worth about $3,772,000. Encompass More Asset Management purchased a new stake in shares of Duolingo during the first quarter worth approximately $762,000. TD Asset Management Inc increased its stake in shares of Duolingo by 12.7% during the first quarter. TD Asset Management Inc now owns 107,520 shares of the company's stock worth $33,389,000 after buying an additional 12,138 shares during the period. Congress Asset Management Co. acquired a new stake in Duolingo in the first quarter valued at approximately $15,430,000. Finally, Ontario Teachers Pension Plan Board lifted its stake in Duolingo by 55.2% in the first quarter. Ontario Teachers Pension Plan Board now owns 4,221 shares of the company's stock worth $1,311,000 after acquiring an additional 1,501 shares during the last quarter. 91.59% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have recently weighed in on DUOL. Citigroup began coverage on shares of Duolingo in a report on Monday. They issued a "buy" rating and a $400.00 price objective on the stock. Morgan Stanley lifted their price target on Duolingo from $480.00 to $500.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Needham & Company LLC increased their price objective on Duolingo from $400.00 to $460.00 and gave the company a "buy" rating in a report on Friday, May 2nd. DA Davidson lowered their price target on Duolingo from $600.00 to $500.00 and set a "buy" rating for the company in a report on Wednesday, June 25th. Finally, Citizens Jmp cut their price objective on shares of Duolingo from $475.00 to $450.00 and set a "mkt outperform" rating on the stock in a report on Monday, July 28th. Thirteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $451.35.

Duolingo Stock Performance

Shares of Duolingo stock traded down $8.1650 during trading on Wednesday, reaching $332.4950. The company's stock had a trading volume of 804,375 shares, compared to its average volume of 1,033,852. The firm has a market cap of $15.24 billion, a PE ratio of 136.78, a P/E/G ratio of 2.46 and a beta of 0.87. The company has a 50-day moving average price of $386.48 and a two-hundred day moving average price of $391.84. The company has a current ratio of 2.81, a quick ratio of 2.81 and a debt-to-equity ratio of 0.10. Duolingo, Inc. has a fifty-two week low of $202.38 and a fifty-two week high of $544.93.

Duolingo (NASDAQ:DUOL - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.91 EPS for the quarter, beating analysts' consensus estimates of $0.55 by $0.36. Duolingo had a net margin of 13.24% and a return on equity of 13.32%. The company had revenue of $252.27 million for the quarter, compared to analyst estimates of $240.84 million. During the same period in the previous year, the business posted $0.51 earnings per share. Duolingo's quarterly revenue was up 41.5% on a year-over-year basis. On average, analysts forecast that Duolingo, Inc. will post 2.03 EPS for the current year.

Insider Activity

In other news, CFO Matthew Skaruppa sold 2,797 shares of the business's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $329.03, for a total value of $920,296.91. Following the transaction, the chief financial officer owned 52,904 shares of the company's stock, valued at approximately $17,407,003.12. The trade was a 5.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, General Counsel Stephen C. Chen sold 1,282 shares of the stock in a transaction on Friday, August 15th. The stock was sold at an average price of $329.03, for a total value of $421,816.46. Following the sale, the general counsel directly owned 34,153 shares of the company's stock, valued at approximately $11,237,361.59. This represents a 3.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 58,056 shares of company stock worth $23,589,966 over the last quarter. 15.67% of the stock is 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.