X Square Capital LLC Acquires 15,961 Shares of Duolingo, Inc. $DUOL

Key Points

• X Square Capital LLC increased its Duolingo stake by 206.6% in the fourth quarter, buying 15,961 additional shares and bringing its total holdings to 23,686 shares worth about $4.16 million.
• Several other institutional investors also boosted their positions, and 91.59% of Duolingo’s stock is now held by hedge funds and other institutions.
• Duolingo reported strong quarterly results, with EPS of $0.89 beating estimates and revenue rising 26.5% year over year to $291.97 million, even as analysts largely remain cautious with a consensus rating of Hold.

X Square Capital LLC boosted its holdings in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 206.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 23,686 shares of the company's stock after acquiring an additional 15,961 shares during the period. Duolingo accounts for about 1.4% of X Square Capital LLC's investment portfolio, making the stock its 18th largest holding. X Square Capital LLC owned about 0.05% of Duolingo worth $4,157,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. NewEdge Advisors LLC boosted its position in shares of Duolingo by 1,868.2% in the 1st quarter. NewEdge Advisors LLC now owns 433 shares of the company's stock worth $134,000 after purchasing an additional 411 shares in the last quarter. Goldman Sachs Group Inc. increased its position in Duolingo by 123.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 87,556 shares of the company's stock valued at $27,190,000 after buying an additional 48,451 shares in the last quarter. Focus Partners Wealth raised its stake in Duolingo by 28.3% during the first quarter. Focus Partners Wealth now owns 2,021 shares of the company's stock valued at $628,000 after buying an additional 446 shares during the last quarter. Amundi boosted its holdings in Duolingo by 142.1% in the second quarter. Amundi now owns 26,075 shares of the company's stock worth $10,352,000 after acquiring an additional 15,306 shares in the last quarter. Finally, Gabelli Funds LLC bought a new stake in Duolingo in the second quarter worth $205,000. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Duolingo

In related news, insider Natalie Glance sold 3,360 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $113.59, for a total value of $381,662.40. Following the sale, the insider directly owned 173,401 shares of the company's stock, valued at $19,696,619.59. This represents a 1.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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. Also, insider Robert Meese sold 1,420 shares of the business's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $112.16, for a total value of $159,267.20. Following the transaction, the insider owned 170,745 shares of the company's stock, valued at $19,150,759.20. This trade represents a 0.82% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 valued at $1,073,864 over the last three months. Corporate insiders own 16.62% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on DUOL shares. JPMorgan Chase & Co. raised their price target on Duolingo from $92.00 to $94.00 and gave the company a "neutral" rating in a report on Tuesday, May 5th. KeyCorp reiterated a "sector weight" rating on shares of Duolingo in a research note on Thursday. Evercore set a $97.00 price objective on shares of Duolingo in a research report on Tuesday, May 5th. Morgan Stanley decreased their target price on shares of Duolingo from $100.00 to $95.00 and set an "equal weight" rating for the company in a report on Tuesday, May 5th. Finally, Truist Financial downgraded shares of Duolingo from a "buy" rating to a "hold" rating and set a $100.00 target price on the stock. in a research note on Friday, February 27th. Three equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $195.94.

Duolingo Stock Up 8.2%

DUOL stock opened at $117.96 on Tuesday. The company has a market cap of $5.50 billion, a price-to-earnings ratio of 13.57, a P/E/G ratio of 0.69 and a beta of 0.89. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.62 and a current ratio of 2.62. The business's 50-day moving average is $104.05 and its two-hundred day moving average is $131.16. Duolingo, Inc. has a fifty-two week low of $87.89 and a fifty-two week high of $509.48.

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 the consensus estimate 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% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.72 EPS. As a group, analysts forecast that Duolingo, Inc. will post 3.39 earnings per share for the current year.

Duolingo Company 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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