Ahn Luis Von Sells 28,292 Shares of Duolingo (NASDAQ:DUOL) Stock

Key Points

• Duolingo CEO Luis von Ahn sold 28,292 shares for approximately $4.25 million under a pre-arranged Rule 10b5-1 trading plan, reducing his direct stake by 55.12% to 23,040 shares.
• Duolingo shares fell 3.5% to $141.90, while the company’s latest quarterly results exceeded estimates with $0.66 in EPS and $298.45 million in revenue, up 18.3% year over year.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and a $124.38 average price target, below its reported trading price, despite several buy ratings.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) CEO Luis van Ahn sold 28,292 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $150.22, for a total value of $4,250,024.24. Following the completion of the sale, the chief executive officer directly owned 23,040 shares in the company, valued at $3,461,068.80. This represents a 55.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Duolingo Stock Down 3.5%

Shares of Duolingo stock traded down $5.20 during trading on Friday, hitting $141.90. 1,383,145 shares of the stock were exchanged, compared to its average volume of 1,058,814. The stock has a market cap of $6.64 billion, a price-to-earnings ratio of 16.81, a price-to-earnings-growth ratio of 1.21 and a beta of 0.89. The firm's 50-day moving average price is $139.73 and its 200 day moving average price is $119.40. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. Duolingo, Inc. has a 12-month low of $87.89 and a 12-month high of $353.00.

Duolingo (NASDAQ:DUOL - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.60 by $0.06. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The company had revenue of $298.45 million during the quarter, compared to the consensus estimate of $295.58 million. During the same period in the previous year, the business earned $0.91 EPS. Duolingo's revenue for the quarter was up 18.3% on a year-over-year basis. As a group, analysts forecast that Duolingo, Inc. will post 2.62 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms recently commented on DUOL. Jefferies Financial Group increased their target price on shares of Duolingo from $95.00 to $125.00 and gave the company a "hold" rating in a research report on Tuesday, July 14th. Susquehanna began coverage on Duolingo in a report on Tuesday, August 18th. They issued a "positive" rating for the company. JPMorgan Chase & Co. raised their price target on Duolingo from $125.00 to $135.00 and gave the stock a "neutral" rating in a research note on Thursday, August 27th. DA Davidson reiterated a "buy" rating and issued a $175.00 price objective on shares of Duolingo in a research note on Monday. Finally, Evercore set a $105.00 target price on shares of Duolingo in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $124.38.

Trending Headlines about Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo launched a global crossover with Supercell’s Brawl Stars, featuring the Duo owl in a promotional boss battle. The campaign could expand brand awareness, user engagement and customer acquisition, although its direct financial impact is not yet clear. Brawl Stars' and Duolingo's Iconic Mascots Face Off in New Collaboration
• Neutral Sentiment: Analysts compared Duolingo with Ingram Micro and Coursera on valuation and investment appeal. These reports keep attention on whether Duolingo’s growth prospects justify its price relative to other technology and online-learning companies, but do not provide a decisive new catalyst. INGM or DUOL: Which Is the Better Value Stock Right Now? Analyzing Duolingo and Coursera
• Neutral Sentiment: Coverage of Duolingo’s AI upgrade and Super subscription changes suggests the initiatives could improve product capabilities and monetization. However, investors remain focused on execution, user adoption and whether the changes translate into sustained earnings growth. Duolingo’s AI Upgrade and Insider Sale
• Negative Sentiment: Several reports characterized DUOL as appearing expensive as AI-related product changes reshape the investment outlook. Valuation concerns can pressure the stock when investors demand clearer evidence that new offerings will accelerate growth. Duolingo Stock Seems Pricey as AI Product Changes Draw Focus
• Negative Sentiment: Director Stephen Chen sold 8,072 Duolingo shares. While an insider sale does not necessarily indicate deteriorating fundamentals, it adds near-term selling pressure and can reinforce investor concerns when the stock is already facing valuation scrutiny. Stephen Chen Sells 8,072 Shares of Duolingo Stock

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of DUOL. Root Financial Partners LLC lifted its holdings in shares of Duolingo by 194.1% during the first quarter. Root Financial Partners LLC now owns 250 shares of the company's stock worth $25,000 after purchasing an additional 165 shares during the period. Banque Cantonale Vaudoise increased 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 buying an additional 115 shares during the period. FNY Investment Advisers LLC purchased a new position in Duolingo during the 2nd quarter worth $34,000. Generali Investments Towarzystwo Funduszy Inwestycyjnych lifted its stake in shares of Duolingo by 42.9% in the 1st quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 500 shares of the company's stock worth $49,000 after acquiring an additional 150 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Duolingo in the 4th quarter worth $73,000. Institutional investors and hedge funds own 91.59% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.