TD Asset Management Inc Decreases Position in Duolingo, Inc. $DUOL

Key Points

• TD Asset Management cut its Duolingo stake by 46.4% in the fourth quarter, though it still held about 53,730 shares valued at roughly $9.43 million.
• Duolingo reported better-than-expected Q1 results, with EPS of $0.89 versus estimates of $0.79 and revenue of $291.97 million, up 26.5% year over year.
• Analyst sentiment remains cautious: the stock has a consensus Hold rating, with several firms lowering price targets even after the company beat earnings expectations.

TD Asset Management Inc lessened its stake in Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 46.4% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 53,730 shares of the company's stock after selling 46,577 shares during the quarter. TD Asset Management Inc owned approximately 0.12% of Duolingo worth $9,430,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. Sivia Capital Partners LLC bought a new stake in shares of Duolingo in the fourth quarter valued at $318,000. CIBC Asset Management Inc raised its stake in Duolingo by 16.4% in the 4th quarter. CIBC Asset Management Inc now owns 1,330 shares of the company's stock valued at $233,000 after acquiring an additional 187 shares during the period. AXQ Capital LP raised its stake in Duolingo by 665.4% in the 4th quarter. AXQ Capital LP now owns 15,140 shares of the company's stock valued at $2,657,000 after acquiring an additional 13,162 shares during the period. Lingotto Investment Management LLP lifted its holdings in Duolingo by 34.3% during the fourth quarter. Lingotto Investment Management LLP now owns 33,563 shares of the company's stock valued at $5,890,000 after purchasing an additional 8,563 shares during the last quarter. Finally, Triodos Investment Management BV lifted its holdings in Duolingo by 63.0% during the fourth quarter. Triodos Investment Management BV now owns 11,000 shares of the company's stock valued at $1,949,000 after purchasing an additional 4,250 shares during the last quarter. 91.59% of the stock is owned by institutional investors.

Duolingo Stock Performance

NASDAQ DUOL opened at $117.86 on Wednesday. The company's 50 day simple moving average is $104.50 and its two-hundred day simple moving average is $130.77. 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 1 year low of $87.89 and a 1 year high of $503.49. The stock has a market capitalization of $5.49 billion, a PE ratio of 13.56, a P/E/G ratio of 0.89 and a beta of 0.89.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its quarterly earnings results on Monday, May 4th. The company reported $0.89 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.10. The firm had revenue of $291.97 million during the quarter, compared to analyst estimates of $288.60 million. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The business's revenue for the quarter was up 26.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.72 EPS. Analysts predict that Duolingo, Inc. will post 2.84 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts have recently weighed in on DUOL shares. Barclays reduced their target price on shares of Duolingo from $230.00 to $110.00 and set an "equal weight" rating for the company in a research note on Monday, March 2nd. Weiss Ratings downgraded shares of Duolingo from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, April 22nd. Bank of America reiterated a "neutral" rating and issued a $100.00 price objective on shares of Duolingo in a research note on Friday, February 27th. Citigroup restated a "neutral" rating and set a $101.00 target price (down from $270.00) on shares of Duolingo in a research report on Friday, February 27th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $145.00 price target on shares of Duolingo in a report on Tuesday, May 5th. Three equities research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $197.61.

Insider Buying and Selling

In other news, insider Robert Meese sold 1,420 shares of Duolingo stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $112.16, for a total transaction of $159,267.20. Following the completion of the sale, the insider owned 170,745 shares in the company, valued at approximately $19,150,759.20. This trade represents a 0.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Natalie Glance sold 3,360 shares of the company's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $113.59, for a total transaction of $381,662.40. Following the completion of the transaction, the insider owned 173,401 shares in the company, valued at approximately $19,696,619.59. This trade represents a 1.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 9,506 shares of company stock worth $1,073,864 over the last ninety days. 16.62% of the stock is owned by corporate insiders.

About Duolingo

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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