T. Rowe Price Investment Management Inc. Purchases 520,069 Shares of Duolingo, Inc. $DUOL

Key Points

• T. Rowe Price Investment Management Inc. increased its stake in Duolingo, Inc. by 110.5%, acquiring an additional 520,069 shares to hold a total of 990,903 shares, valued at approximately $307.7 million.
• Duolingo reported strong earnings with an EPS of $0.91, exceeding analysts' expectations and reflecting a 41.5% increase in revenue year-over-year.
• Institutional investors hold approximately 91.59% of Duolingo's stock, indicating strong faith in the company's potential among major financial institutions.

T. Rowe Price Investment Management Inc. boosted its position in Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 110.5% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 990,903 shares of the company's stock after buying an additional 520,069 shares during the period. T. Rowe Price Investment Management Inc. owned approximately 2.18% of Duolingo worth $307,716,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Invesco Ltd. boosted its stake in shares of Duolingo by 24.1% in the 1st quarter. Invesco Ltd. now owns 1,346,278 shares of the company's stock worth $418,073,000 after buying an additional 261,212 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Duolingo by 0.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,339,780 shares of the company's stock valued at $434,398,000 after purchasing an additional 10,638 shares during the last quarter. Bank of New York Mellon Corp lifted its stake in Duolingo by 0.4% in the first quarter. Bank of New York Mellon Corp now owns 431,464 shares of the company's stock valued at $133,987,000 after purchasing an additional 1,506 shares during the last quarter. Northern Trust Corp lifted its stake in 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 during the last quarter. Finally, GAMMA Investing LLC lifted its stake in 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 during the last quarter. 91.59% of the stock is owned by institutional investors.

Duolingo Price Performance

Shares of NASDAQ DUOL opened at $338.88 on Thursday. The company has a quick ratio of 2.81, a current ratio of 2.81 and a debt-to-equity ratio of 0.10. Duolingo, Inc. has a twelve month low of $202.38 and a twelve month high of $544.93. The firm has a market cap of $15.53 billion, a P/E ratio of 139.46, a PEG ratio of 2.27 and a beta of 0.87. The company has a 50 day moving average of $383.78 and a 200 day moving average of $391.48.

Duolingo (NASDAQ:DUOL - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.91 EPS for the quarter, topping 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 business had revenue of $252.27 million during the quarter, compared to the consensus estimate of $240.84 million. During the same quarter in the previous year, the firm posted $0.51 EPS. The firm's revenue was up 41.5% on a year-over-year basis. As a group, research analysts expect that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Insider Activity at Duolingo

In related news, CFO Matthew Skaruppa sold 2,797 shares of Duolingo stock in a transaction on Friday, August 15th. The shares were sold at an average price of $329.03, for a total transaction of $920,296.91. Following the transaction, the chief financial officer owned 52,904 shares in the company, valued at approximately $17,407,003.12. The trade was a 5.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, General Counsel Stephen C. Chen sold 1,282 shares of Duolingo stock in a transaction on Friday, August 15th. The shares were sold at an average price of $329.03, for a total transaction of $421,816.46. Following the transaction, the general counsel owned 34,153 shares in the company, valued at approximately $11,237,361.59. This trade represents a 3.62% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 58,056 shares of company stock worth $23,589,966 in the last 90 days. Company insiders own 15.67% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have issued reports on DUOL shares. Scotiabank increased their target price on Duolingo from $405.00 to $470.00 and gave the stock a "sector outperform" rating in a research report on Friday, May 2nd. Morgan Stanley raised their price target on Duolingo from $480.00 to $500.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. Needham & Company LLC raised their price target on Duolingo from $400.00 to $460.00 and gave the company a "buy" rating in a research report on Friday, May 2nd. UBS Group reaffirmed an "overweight" rating on shares of Duolingo in a research note on Thursday, May 22nd. Finally, KeyCorp raised Duolingo from a "sector weight" rating to an "overweight" rating and set a $460.00 price objective on the stock in a research note on Monday. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average 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.

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