Proem Advisors LLC Sells 100,750 Shares of Duolingo, Inc. $DUOL

Key Points

• Proem Advisors LLC cut its Duolingo stake by 86.1% in the fourth quarter, selling 100,750 shares and leaving it with 16,250 shares worth about $2.85 million.
• Duolingo reported better-than-expected first-quarter results, with EPS of $0.89 versus $0.79 expected and revenue of $291.97 million, up 26.5% year over year.
• Despite the strong earnings, the stock has been under pressure: shares were down 2.6% in recent trading, and Wall Street currently has a Hold consensus rating on DUOL.

Proem Advisors LLC trimmed its position in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 86.1% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 16,250 shares of the company's stock after selling 100,750 shares during the quarter. Duolingo accounts for 0.3% of Proem Advisors LLC's portfolio, making the stock its 25th largest position. Proem Advisors LLC's holdings in Duolingo were worth $2,852,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Citigroup Inc. boosted its position in shares of Duolingo by 31.8% during the third quarter. Citigroup Inc. now owns 259,666 shares of the company's stock worth $83,571,000 after purchasing an additional 62,614 shares in the last quarter. Intech Investment Management LLC boosted its position in shares of Duolingo by 967.3% during the third quarter. Intech Investment Management LLC now owns 48,926 shares of the company's stock worth $15,746,000 after purchasing an additional 44,342 shares in the last quarter. Baillie Gifford & Co. lifted its position in Duolingo by 71.9% in the 4th quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company's stock valued at $853,184,000 after acquiring an additional 2,033,611 shares in the last quarter. Mitchell Capital Management Co. bought a new stake in Duolingo in the 3rd quarter valued at $4,589,000. Finally, Broad Peak Investment Advisers Pte Ltd bought a new stake in Duolingo in the 3rd quarter valued at $9,977,000. 91.59% of the stock is owned by institutional investors.

Duolingo Trading Down 2.6%

Shares of NASDAQ:DUOL opened at $105.15 on Tuesday. The company's 50-day moving average price is $100.02 and its two-hundred day moving average price is $149.69. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.62 and a quick ratio of 2.62. Duolingo, Inc. has a one year low of $87.89 and a one year high of $544.93. The stock has a market capitalization of $4.94 billion, a PE ratio of 12.10, a price-to-earnings-growth ratio of 0.83 and a beta of 0.90.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its quarterly earnings results on Monday, May 4th. The company reported $0.89 EPS for the quarter, topping the consensus estimate of $0.79 by $0.10. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The firm had revenue of $291.97 million for the quarter, compared to analysts' expectations of $288.60 million. During the same period in the previous year, the firm posted $0.72 EPS. The company's revenue for the quarter was up 26.5% on a year-over-year basis. On average, equities analysts forecast that Duolingo, Inc. will post 2.78 EPS for the current fiscal year.

Insider Activity

In other Duolingo news, General Counsel Stephen C. Chen sold 1,901 shares of the business's stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $113.26, for a total transaction of $215,307.26. Following the sale, the general counsel directly owned 30,545 shares of the company's stock, valued at $3,459,526.70. The trade was a 5.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Matthew Skaruppa sold 3,986 shares of the business's stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $113.52, for a total transaction of $452,490.72. Following the sale, the chief financial officer directly owned 31,631 shares in the company, valued at $3,590,751.12. This trade represents a 11.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 14,939 shares of company stock worth $1,676,291. 16.62% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research firms recently commented on DUOL. Argus reaffirmed a "hold" rating on shares of Duolingo in a research report on Wednesday, March 18th. Morgan Stanley cut their price objective on shares of Duolingo from $100.00 to $95.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 5th. Evercore set a $97.00 price objective on shares of Duolingo in a research report on Tuesday, May 5th. DA Davidson boosted their price objective on shares of Duolingo from $85.00 to $90.00 and gave the company a "neutral" rating in a research report on Tuesday, May 5th. Finally, Zacks Research raised shares of Duolingo from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Three analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Duolingo currently has a consensus rating of "Hold" and an average target price of $195.94.

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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