VIRGINIA RETIREMENT SYSTEMS ET Al Invests $1.18 Million in Duolingo, Inc. $DUOL

Key Points

• Virginia Retirement Systems purchased 10,275 Duolingo shares worth approximately $1.18 million, while institutional investors collectively own 91.59% of the company.
• Duolingo exceeded quarterly expectations, reporting $0.66 in earnings per share versus $0.60 expected and $298.45 million in revenue, up 18.3% year over year.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a $124.38 target price, below its reported market price of $143.68, while insiders sold about $2.33 million in shares over the past 90 days.

VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 10,275 shares of the company's stock, valued at approximately $1,182,000.

Other large investors also recently bought and sold shares of the company. Root Financial Partners LLC grew its holdings in Duolingo by 194.1% in the first quarter. Root Financial Partners LLC now owns 250 shares of the company's stock valued at $25,000 after purchasing an additional 165 shares during the period. EFG International AG purchased a new stake in shares of Duolingo during the fourth quarter worth about $26,000. AlphaCentric Advisors LLC purchased a new stake in Duolingo during the 4th quarter worth approximately $33,000. Banque Cantonale Vaudoise raised its stake in Duolingo by 51.1% in the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company's stock valued at $34,000 after purchasing an additional 115 shares during the last quarter. Finally, FNY Investment Advisers LLC acquired a new stake in shares of Duolingo in the second quarter valued at about $34,000. Institutional investors and hedge funds own 91.59% of the company's stock.

Duolingo Stock Down 1.0%

Shares of NASDAQ DUOL opened at $143.68 on Friday. The company has a market capitalization of $6.72 billion, a P/E ratio of 17.02, a P/E/G ratio of 1.18 and a beta of 0.89. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. The company has a 50 day simple moving average of $137.76 and a 200-day simple moving average of $118.02. Duolingo, Inc. has a 1 year low of $87.89 and a 1 year high of $353.00.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.66 EPS for the quarter, beating analysts' consensus estimates of $0.60 by $0.06. The firm had revenue of $298.45 million for the quarter, compared to analysts' expectations of $295.58 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The firm's quarterly revenue was up 18.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.91 earnings per share. On average, equities research analysts predict that Duolingo, Inc. will post 2.62 earnings per share for the current year.

Insider Activity at Duolingo

In other news, Director William B. Gordon sold 10,000 shares of the stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $145.67, for a total transaction of $1,456,700.00. Following the sale, the director owned 68,415 shares of the company's stock, valued at approximately $9,966,013.05. This represents a 12.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Stephen C. Chen sold 1,024 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $129.13, for a total transaction of $132,229.12. Following the sale, the general counsel owned 51,841 shares in the company, valued at approximately $6,694,228.33. This trade represents a 1.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 16,668 shares of company stock valued at $2,331,082 over the last 90 days. Insiders own 16.62% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on DUOL shares. DA Davidson increased their price target on Duolingo from $160.00 to $175.00 and gave the company a "buy" rating in a report on Tuesday, September 1st. Argus reissued a "hold" rating and set a $146.00 price objective on shares of Duolingo in a research note on Tuesday, August 25th. UBS Group upped their target price on Duolingo from $125.00 to $150.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Needham & Company LLC reaffirmed a "buy" rating and issued a $145.00 target price on shares of Duolingo in a research note on Thursday, August 6th. Finally, Weiss Ratings upgraded Duolingo from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, June 18th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $124.38.

More Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo reportedly retains 68% of users, a level highlighted as stronger than retention at popular mobile games such as Candy Crush and Royal Match. The comparison reinforces the platform’s engagement and could support the company’s subscription growth story. Duolingo user retention article
• Positive Sentiment: Duolingo received widespread free publicity after Apple introduced a foldable phone called the “iPhone Duo.” The company’s humorous social-media response, including exchanges with Samsung, generated substantial meme coverage and may increase brand awareness and engagement, although no immediate financial benefit was quantified. iPhone Duo memes article
• Positive Sentiment: A new Duolingo clothing line tied to language and pronunciation is expanding the brand beyond its core learning app. The initiative could create additional marketing reach and potential merchandise revenue, though its financial impact remains uncertain. Duolingo clothing line article
• Neutral Sentiment: Director William Gordon sold 10,000 shares for approximately $1.46 million, reducing his position by 12.75%. Because the transaction was conducted under a pre-arranged Rule 10b5-1 plan, it is a limited discretionary signal, but it may still weigh modestly on sentiment. SEC insider transaction filing
• Negative Sentiment: A widely circulated CEO account claiming ChatGPT taught him Spanish more effectively than Duolingo highlights the competitive threat from AI language-learning tools. Although anecdotal, the commentary could raise concerns about Duolingo’s long-term differentiation and weigh on the stock. ChatGPT language-learning article

Duolingo Company Profile

Duolingo, Inc develops digital learning products designed to make education accessible through mobile devices and the web. Its primary product is the Duolingo language-learning platform, which offers courses in numerous languages through interactive, game-like lessons, practice exercises and personalized learning features.

The company also provides the Duolingo English Test, an online English-proficiency assessment used by educational institutions and other organizations. In addition, Duolingo has expanded beyond language learning with products such as Duolingo Math and Duolingo Music, while offering premium subscription features through plans including Super Duolingo and Duolingo Max.

Duolingo serves users internationally, with its applications and online services available across a broad range of geographies.

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