Stony Point Capital LLC Makes New $5.56 Million Investment in Duolingo, Inc. $DUOL

Key Points

• Stony Point Capital LLC invested approximately $5.56 million in Duolingo, acquiring 17,900 shares during the first quarter.
• Duolingo's stock has seen fluctuations, with a one-year low of $202.44 and a high of $544.93, and the current market cap stands at $14.79 billion.
• In the latest earnings report, Duolingo reported a 41.5% year-over-year increase in revenue, totaling $252.27 million for the quarter.

Stony Point Capital LLC purchased a new position in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 17,900 shares of the company's stock, valued at approximately $5,559,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Invesco Ltd. increased its stake in shares of Duolingo by 24.1% during the first quarter. Invesco Ltd. now owns 1,346,278 shares of the company's stock worth $418,073,000 after acquiring an additional 261,212 shares during the period. T. Rowe Price Investment Management Inc. boosted its holdings in Duolingo by 110.5% during the first quarter. T. Rowe Price Investment Management Inc. now owns 990,903 shares of the company's stock worth $307,716,000 after buying an additional 520,069 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in Duolingo by 0.4% during the first quarter. Bank of New York Mellon Corp now owns 431,464 shares of the company's stock worth $133,987,000 after buying an additional 1,506 shares in the last quarter. Northern Trust Corp lifted its holdings in shares of Duolingo by 18.6% in the fourth quarter. Northern Trust Corp now owns 296,457 shares of the company's stock valued at $96,120,000 after purchasing an additional 46,442 shares in the last quarter. Finally, GAMMA Investing LLC lifted its holdings in shares of Duolingo by 41,959.1% in the first quarter. GAMMA Investing LLC now owns 239,737 shares of the company's stock valued at $74,448,000 after purchasing an additional 239,167 shares in the last quarter. 91.59% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, insider Natalie Glance sold 2,533 shares of the business's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $329.03, for a total value of $833,432.99. Following the completion of the sale, the insider owned 122,112 shares of the company's stock, valued at approximately $40,178,511.36. The trade was a 2.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Matthew Skaruppa sold 10,937 shares of the business's stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $317.39, for a total value of $3,471,294.43. Following the completion of the transaction, the chief financial officer directly owned 43,345 shares of the company's stock, valued at approximately $13,757,269.55. This trade represents a 20.15% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 80,508 shares of company stock valued at $30,993,721 in the last ninety days. Corporate insiders own 18.30% of the company's stock.

Duolingo Price Performance

Shares of DUOL traded down $7.88 during trading hours on Tuesday, hitting $289.98. The stock had a trading volume of 1,460,452 shares, compared to its average volume of 1,062,832. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.81 and a quick ratio of 2.81. The stock has a market capitalization of $13.29 billion, a price-to-earnings ratio of 119.33, a P/E/G ratio of 1.99 and a beta of 0.85. Duolingo, Inc. has a 52 week low of $202.44 and a 52 week high of $544.93. The company's fifty day moving average is $359.03 and its two-hundred day moving average is $387.02.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate 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 quarter last year, the firm earned $0.51 EPS. The company's revenue for the quarter was up 41.5% on a year-over-year basis. On average, analysts anticipate that Duolingo, Inc. will post 2.03 EPS for the current year.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on DUOL. DA Davidson reduced their price objective on shares of Duolingo from $600.00 to $500.00 and set a "buy" rating on the stock in a research note on Wednesday, June 25th. JPMorgan Chase & Co. increased their price objective on shares of Duolingo from $500.00 to $515.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. The Goldman Sachs Group increased their price objective on shares of Duolingo from $340.00 to $403.00 and gave the stock a "neutral" rating in a research report on Monday, May 5th. JMP Securities lowered their price target on shares of Duolingo from $475.00 to $450.00 and set a "market outperform" rating for the company in a report on Monday, July 28th. Finally, Wall Street Zen downgraded shares of Duolingo from a "buy" rating to a "hold" rating in a research note on Saturday. Thirteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $451.35.

About Duolingo

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.