Jefferies Financial Group Forecasts Strong Price Appreciation for Duolingo (NASDAQ:DUOL) Stock

Key Points

• Jefferies Financial Group raised its price target on Duolingo from $95 to $125, while keeping a hold rating. The new target still implies a small downside from the stock’s previous close.
• Duolingo shares were up 6.1% in the session, opening at $132.34, even after a year that saw the stock trade between $87.89 and $468.00. The company currently has a market cap of about $6.17 billion.
• The company recently beat earnings expectations, reporting $0.89 EPS versus $0.79 expected and revenue of $291.97 million, up 26.5% year over year. Analysts still see most ratings as cautious, with a consensus Hold on the stock.

Duolingo (NASDAQ:DUOL - Get Free Report) had its price objective boosted by equities researchers at Jefferies Financial Group from $95.00 to $125.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. Jefferies Financial Group's target price would suggest a potential downside of 5.55% from the stock's previous close.

A number of other brokerages also recently commented on DUOL. JPMorgan Chase & Co. raised their price objective on shares of Duolingo from $92.00 to $94.00 and gave the company a "neutral" rating in a research report on Tuesday, May 5th. Weiss Ratings upgraded Duolingo from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, June 18th. Zacks Research raised Duolingo from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 28th. Needham & Company LLC reissued a "buy" rating and issued a $145.00 price target on shares of Duolingo in a report on Tuesday, May 5th. Finally, DA Davidson restated a "neutral" rating and issued a $120.00 price target on shares of Duolingo in a research note on Monday, June 29th. Two research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $165.24.

Duolingo Stock Up 6.1%

Shares of Duolingo stock opened at $132.34 on Tuesday. The company has a market cap of $6.17 billion, a P/E ratio of 15.23, a PEG ratio of 0.97 and a beta of 0.88. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.62 and a current ratio of 2.62. Duolingo has a one year low of $87.89 and a one year high of $468.00. The firm has a fifty day moving average of $117.11 and a two-hundred day moving average of $120.27.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its earnings results on Monday, May 4th. The company reported $0.89 EPS for the quarter, topping the consensus estimate of $0.79 by $0.10. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The company had revenue of $291.97 million during the quarter, compared to analysts' expectations of $288.60 million. During the same quarter last year, the business earned $0.72 EPS. The business's revenue was up 26.5% on a year-over-year basis. On average, analysts forecast that Duolingo will post 2.76 earnings per share for the current year.

Insider Activity at Duolingo

In related news, insider Natalie Glance sold 3,360 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $113.59, for a total transaction of $381,662.40. Following the sale, the insider owned 173,401 shares of the company's stock, valued at approximately $19,696,619.59. The trade was a 1.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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, General Counsel Stephen C. Chen sold 1,977 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $113.61, for a total transaction of $224,606.97. Following the sale, the general counsel directly owned 52,807 shares in the company, valued at approximately $5,999,403.27. This represents a 3.61% decrease in their position. The SEC filing for this sale provides additional information. 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 9,506 shares of company stock worth $1,073,864 over the last 90 days. Company insiders own 16.62% of the company's stock.

Institutional Investors Weigh In On Duolingo

Several institutional investors have recently modified their holdings of DUOL. KERR FINANCIAL PLANNING Corp acquired a new stake in shares of Duolingo in the 3rd quarter worth approximately $47,000. EFG International AG acquired a new position in Duolingo during the fourth quarter worth $26,000. Globeflex Capital L P purchased a new stake in Duolingo during the second quarter worth $77,000. AlphaCentric Advisors LLC purchased a new stake in Duolingo during the fourth quarter worth $33,000. Finally, Banque Cantonale Vaudoise acquired a new stake in Duolingo in the third quarter valued at $70,000. Hedge funds and other institutional investors own 91.59% of the company's stock.

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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