Insider Selling: Duolingo (NASDAQ:DUOL) CEO Sells 46,682 Shares of Stock

Key Points

• CEO Luis von Ahn sold 46,682 Duolingo shares at an average price of $150.63, generating approximately $7.03 million. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan and reduced his position by 50%.
• Duolingo shares fell 6.4% to $134.30, while the company’s latest quarterly results exceeded expectations with earnings of $0.66 per share and revenue of $298.45 million, up 18.3% year over year.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $124.38; institutional investors own approximately 91.6% of the company.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) CEO Luis van Ahn sold 46,682 shares of Duolingo stock in a transaction dated Thursday, September 24th. The shares were sold at an average price of $150.63, for a total value of $7,031,709.66. Following the completion of the sale, the chief executive officer owned 46,682 shares of the company's stock, valued at $7,031,709.66. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Ahn Luis Von also recently made the following trade(s):

• On Tuesday, September 22nd, Luis van Ahn sold 3,614 shares of Duolingo stock. The shares were sold at an average price of $151.91, for a total value of $549,002.74.
• On Monday, September 21st, Luis van Ahn sold 37,366 shares of Duolingo stock. The shares were sold at an average price of $150.53, for a total transaction of $5,624,703.98.
• On Wednesday, September 16th, Luis van Ahn sold 28,292 shares of Duolingo stock. The stock was sold at an average price of $150.22, for a total value of $4,250,024.24.

Duolingo Stock Down 6.4%

Shares of Duolingo stock traded down $9.21 on Monday, hitting $134.30. 1,622,727 shares of the company's stock traded hands, compared to its average volume of 1,881,327. Duolingo, Inc. has a 52-week low of $87.89 and a 52-week high of $353.00. The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.06. The stock has a market cap of $6.28 billion, a P/E ratio of 15.91, a PEG ratio of 1.18 and a beta of 0.89. The firm's 50-day moving average is $141.32 and its 200 day moving average is $121.17.

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

Hedge Funds Weigh In On Duolingo

Several hedge funds and other institutional investors have recently modified their holdings of DUOL. Lingotto Investment Management LLP grew its holdings in shares of Duolingo by 34.3% during the fourth quarter. Lingotto Investment Management LLP now owns 33,563 shares of the company's stock worth $5,890,000 after buying an additional 8,563 shares in the last quarter. Landscape Capital Management L.L.C. acquired a new position in Duolingo during the fourth quarter worth approximately $3,752,000. Baird Financial Group Inc. raised its position in shares of Duolingo by 881.9% in the second quarter. Baird Financial Group Inc. now owns 69,331 shares of the company's stock valued at $7,975,000 after purchasing an additional 62,270 shares during the period. Amundi lifted its holdings in Duolingo by 1,351.7% during the 1st quarter. Amundi now owns 449,068 shares of the company's stock worth $44,265,000 after purchasing an additional 418,134 shares during the last quarter. Finally, AXQ Capital LP boosted its holdings 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 purchasing an additional 13,162 shares during the period. Institutional investors own 91.59% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently weighed in on DUOL. Wedbush upped their price objective on Duolingo from $139.00 to $150.00 and gave the company a "neutral" rating in a report on Thursday, August 20th. Wall Street Zen upgraded Duolingo from a "sell" rating to a "hold" rating in a research report on Sunday, August 16th. Susquehanna began coverage on Duolingo in a research report on Tuesday, August 18th. They issued a "positive" rating for the company. Wells Fargo & Company began coverage on shares of Duolingo in a research report on Tuesday, August 18th. They set an "overweight" rating on the stock. Finally, Citigroup upgraded shares of Duolingo from a "hold" rating to a "buy" rating in a report on Tuesday, August 18th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $124.38.

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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