Duolingo (NASDAQ:DUOL) Hits New 12-Month Low – Should You Sell?

Duolingo, Inc. (NASDAQ:DUOL) reached a new 52-week low on Friday . The stock traded as low as $91.61 and last traded at $93.6020, with a volume of 450844 shares trading hands. The stock had previously closed at $98.11.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Argus reaffirmed a “hold” rating on shares of Duolingo in a research note on Wednesday, March 18th. Weiss Ratings reiterated a “hold (c)” rating on shares of Duolingo in a research report on Monday, December 29th. Truist Financial lowered shares of Duolingo from a “buy” rating to a “hold” rating and set a $100.00 target price for the company. in a report on Friday, February 27th. Citigroup reaffirmed a “neutral” rating and set a $101.00 price target (down from $270.00) on shares of Duolingo in a research note on Friday, February 27th. Finally, Wells Fargo & Company dropped their price objective on shares of Duolingo from $185.00 to $160.00 and set an “underweight” rating for the company in a research note on Thursday, January 8th. Four investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $206.32.

Duolingo Price Performance

The firm has a market cap of $4.36 billion, a P/E ratio of 11.08, a PEG ratio of 0.69 and a beta of 0.90. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.61 and a quick ratio of 2.61. The stock’s 50-day simple moving average is $115.82 and its two-hundred day simple moving average is $195.81.

Duolingo (NASDAQ:DUOL) last released its earnings results on Thursday, February 26th. The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.12. Duolingo had a net margin of 39.91% and a return on equity of 14.88%. The firm had revenue of $282.87 million during the quarter, compared to analyst estimates of $275.95 million. The company’s revenue for the quarter was up 35.0% compared to the same quarter last year. Equities research analysts forecast that Duolingo, Inc. will post 2.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Duolingo news, insider Robert Meese sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $110.06, for a total transaction of $110,060.00. Following the completion of the transaction, the insider owned 122,636 shares in the company, valued at $13,497,318.16. The trade was a 0.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Matthew Skaruppa sold 3,986 shares of the company’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $113.52, for a total value of $452,490.72. Following the transaction, the chief financial officer directly owned 31,631 shares in the company, valued at approximately $3,590,751.12. This represents a 11.19% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 14,939 shares of company stock valued at $1,676,291 over the last quarter. Corporate insiders own 15.67% of the company’s stock.

Institutional Trading of Duolingo

Several institutional investors and hedge funds have recently made changes to their positions in the business. NewEdge Advisors LLC grew its holdings in shares of Duolingo by 1,868.2% in the first quarter. NewEdge Advisors LLC now owns 433 shares of the company’s stock worth $134,000 after purchasing an additional 411 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Duolingo by 123.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 87,556 shares of the company’s stock valued at $27,190,000 after buying an additional 48,451 shares in the last quarter. Focus Partners Wealth lifted its holdings in Duolingo by 28.3% during the 1st quarter. Focus Partners Wealth now owns 2,021 shares of the company’s stock valued at $628,000 after buying an additional 446 shares in the last quarter. Creative Planning boosted its position in Duolingo by 32.4% in the 2nd quarter. Creative Planning now owns 3,454 shares of the company’s stock valued at $1,416,000 after buying an additional 846 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its stake in Duolingo by 4.8% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 359,052 shares of the company’s stock worth $147,219,000 after acquiring an additional 16,604 shares in the last quarter. 91.59% of the stock is currently owned by institutional investors.

About Duolingo

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.