Duolingo (NASDAQ:DUOL) Shares Gap Down on Analyst Downgrade

Duolingo, Inc. (NASDAQ:DUOL) gapped down before the market opened on Thursday after Barclays lowered their price target on the stock from $243.00 to $230.00. The stock had previously closed at $244.64, but opened at $201.00. Barclays currently has an equal weight rating on the stock. Duolingo shares last traded at $196.18, with a volume of 671,601 shares.

Several other analysts also recently issued reports on the stock. UBS Group lifted their price target on shares of Duolingo from $230.00 to $275.00 and gave the company a “buy” rating in a research report on Thursday, February 29th. The Goldman Sachs Group boosted their price target on shares of Duolingo from $160.00 to $190.00 and gave the stock a “sell” rating in a report on Thursday, February 29th. JPMorgan Chase & Co. began coverage on Duolingo in a report on Monday, March 11th. They set an “overweight” rating and a $270.00 price objective for the company. Piper Sandler lifted their target price on shares of Duolingo from $217.00 to $282.00 and gave the stock an “overweight” rating in a research note on Thursday, February 29th. Finally, Needham & Company LLC boosted their price objective on Duolingo from $241.00 to $267.00 and gave the company a “buy” rating in a research note on Thursday. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and five have assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $246.75.

Insider Transactions at Duolingo

In other news, insider Natalie Glance sold 1,500 shares of Duolingo stock in a transaction that occurred on Monday, May 6th. The stock was sold at an average price of $247.82, for a total value of $371,730.00. Following the sale, the insider now directly owns 123,005 shares in the company, valued at approximately $30,483,099.10. The sale was disclosed in a filing with the SEC, which is available through this link. In other news, insider Natalie Glance sold 1,500 shares of Duolingo stock in a transaction dated Monday, May 6th. The shares were sold at an average price of $247.82, for a total transaction of $371,730.00. Following the sale, the insider now owns 123,005 shares of the company’s stock, valued at approximately $30,483,099.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Ahn Luis Von sold 22,023 shares of the business’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $220.26, for a total transaction of $4,850,785.98. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 125,223 shares of company stock worth $27,273,230. Company insiders own 19.85% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Entropy Technologies LP increased its holdings in shares of Duolingo by 410.9% in the 1st quarter. Entropy Technologies LP now owns 5,681 shares of the company’s stock worth $1,253,000 after purchasing an additional 4,569 shares in the last quarter. ProShare Advisors LLC raised its holdings in Duolingo by 9.8% in the 1st quarter. ProShare Advisors LLC now owns 5,320 shares of the company’s stock worth $1,173,000 after purchasing an additional 475 shares during the period. Russell Investments Group Ltd. raised its stake in shares of Duolingo by 4.4% in the first quarter. Russell Investments Group Ltd. now owns 74,966 shares of the company’s stock worth $16,614,000 after buying an additional 3,143 shares during the period. Qsemble Capital Management LP purchased a new position in Duolingo during the first quarter valued at approximately $528,000. Finally, Headlands Technologies LLC lifted its stake in shares of Duolingo by 19.8% during the 1st quarter. Headlands Technologies LLC now owns 767 shares of the company’s stock valued at $169,000 after buying an additional 127 shares in the last quarter. Institutional investors own 91.59% of the company’s stock.

Duolingo Stock Down 16.8 %

The company has a debt-to-equity ratio of 0.03, a current ratio of 3.24 and a quick ratio of 3.24. The firm has a market capitalization of $8.73 billion, a PE ratio of 587.02 and a beta of 0.82. The company has a 50-day moving average price of $221.21 and a 200 day moving average price of $207.17.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings results on Wednesday, May 8th. The company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.30 by $0.27. Duolingo had a net margin of 3.03% and a return on equity of 2.64%. The company had revenue of $167.70 million for the quarter, compared to the consensus estimate of $165.60 million. During the same period in the previous year, the firm posted ($0.06) EPS. Duolingo’s revenue for the quarter was up 44.9% compared to the same quarter last year. Analysts forecast that Duolingo, Inc. will post 1.38 earnings per share for the current year.

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.