KeyCorp Forecasts Duolingo's FY2025 Earnings (NASDAQ:DUOL)

Key Points

• KeyCorp analysts project Duolingo will have earnings per share (EPS) of $3.12 for FY2025, significantly higher than the current estimate of $2.03.
• Insider transactions saw executives sell shares at around $329.03, leading to a slight decrease in their ownership percentages.
• The current consensus target price for Duolingo's stock sits at $451.35, with a "Moderate Buy" rating from analysts.

Duolingo, Inc. (NASDAQ:DUOL - Free Report) - Equities research analysts at KeyCorp issued their FY2025 earnings per share estimates for Duolingo in a research report issued to clients and investors on Sunday, August 17th. KeyCorp analyst J. Patterson expects that the company will post earnings of $3.12 per share for the year. KeyCorp currently has a "Overweight" rating and a $460.00 price target on the stock. The consensus estimate for Duolingo's current full-year earnings is $2.03 per share.

Duolingo (NASDAQ:DUOL - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.36. The firm had revenue of $252.27 million during the quarter, compared to analysts' expectations of $240.84 million. Duolingo had a return on equity of 13.32% and a net margin of 13.24%.The company's quarterly revenue was up 41.5% compared to the same quarter last year. During the same period in the previous year, the business posted $0.51 EPS.

A number of other analysts have also recently commented on DUOL. Scotiabank upped their price target on Duolingo from $405.00 to $470.00 and gave the company a "sector outperform" rating in a research note on Friday, May 2nd. JPMorgan Chase & Co. upped their price target on Duolingo from $500.00 to $515.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Piper Sandler set a $375.00 price target on Duolingo in a research report on Friday, May 2nd. Evercore ISI increased their price objective on Duolingo from $400.00 to $480.00 and gave the company an "outperform" rating in a report on Friday, May 2nd. Finally, DA Davidson cut their price target on Duolingo from $600.00 to $500.00 and set a "buy" rating for the company in a report on Wednesday, June 25th. Thirteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Duolingo presently has a consensus rating of "Moderate Buy" and a consensus target price of $451.35.

Duolingo Trading Down 4.0%

NASDAQ:DUOL traded down $13.65 on Wednesday, hitting $331.87. 1,957,429 shares of the stock were exchanged, compared to its average volume of 2,115,386. The company has a debt-to-equity ratio of 0.10, a quick ratio of 2.81 and a current ratio of 2.81. The stock has a market capitalization of $15.21 billion, a price-to-earnings ratio of 136.57, a P/E/G ratio of 2.21 and a beta of 0.87. The company's 50-day moving average price is $378.13 and its 200 day moving average price is $390.97. Duolingo has a 52 week low of $202.38 and a 52 week high of $544.93.

Hedge Funds Weigh In On Duolingo

Institutional investors have recently added to or reduced their stakes in the business. Contravisory Investment Management Inc. acquired a new position in Duolingo in the first quarter valued at approximately $25,000. Rise Advisors LLC raised its position in Duolingo by 43.6% in the 1st quarter. Rise Advisors LLC now owns 79 shares of the company's stock valued at $25,000 after buying an additional 24 shares during the last quarter. Summit Securities Group LLC purchased a new stake in shares of Duolingo during the 1st quarter valued at $28,000. Quarry LP increased its position in shares of Duolingo by 250.0% during the 4th quarter. Quarry LP now owns 91 shares of the company's stock valued at $30,000 after purchasing an additional 65 shares during the last quarter. Finally, Brooklyn Investment Group increased its position in shares of Duolingo by 4,750.0% during the 1st quarter. Brooklyn Investment Group now owns 97 shares of the company's stock valued at $30,000 after purchasing an additional 95 shares during the last quarter. 91.59% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Duolingo

In other news, General Counsel Stephen C. Chen sold 1,282 shares of the business's stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $329.03, for a total transaction of $421,816.46. Following the sale, the general counsel directly owned 34,153 shares in the company, valued at approximately $11,237,361.59. The trade was a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Matthew Skaruppa sold 2,797 shares of Duolingo stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $329.03, for a total value of $920,296.91. Following the completion of the transaction, the chief financial officer directly owned 52,904 shares in the company, valued at approximately $17,407,003.12. This represents a 5.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 68,056 shares of company stock valued at $27,035,566. Corporate insiders own 15.67% of the company's stock.

Duolingo Company Profile

Duolingo, Inc operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam.