Duolingo (NASDAQ:DUOL) Trading Down 5.9% – Here’s Why

Duolingo, Inc. (NASDAQ:DUOL)’s stock price fell 5.9% during mid-day trading on Friday . The company traded as low as $136.60 and last traded at $135.5380. 108,507 shares were traded during trading, a decline of 95% from the average daily volume of 2,011,829 shares. The stock had previously closed at $144.10.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Morgan Stanley lifted their price objective on Duolingo from $95.00 to $125.00 and gave the company an “equal weight” rating in a report on Thursday, July 16th. Weiss Ratings raised Duolingo from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, June 18th. Wedbush initiated coverage on Duolingo in a research report on Thursday, July 16th. They issued a “neutral” rating and a $139.00 price target on the stock. UBS Group boosted their price target on Duolingo from $125.00 to $150.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Finally, Barclays upped their price objective on shares of Duolingo from $110.00 to $115.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eighteen have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $148.12.

Duolingo Trading Down 7.1%

The firm has a market capitalization of $6.24 billion, a price-to-earnings ratio of 15.92, a P/E/G ratio of 1.08 and a beta of 0.87. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. The firm’s 50-day simple moving average is $127.90 and its 200 day simple moving average is $114.48.

Duolingo (NASDAQ:DUOL) last released its earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.06. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The firm had revenue of $298.45 million during the quarter, compared to analysts’ expectations of $295.58 million. During the same period in the prior year, the company earned $0.91 earnings per share. The company’s quarterly revenue was up 18.3% on a year-over-year basis. Equities analysts expect that Duolingo, Inc. will post 2.67 earnings per share for the current year.

Insider Buying and Selling at Duolingo

In other Duolingo news, insider Natalie Glance sold 3,360 shares of Duolingo stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $113.59, for a total value of $381,662.40. Following the transaction, the insider owned 173,401 shares in the company, valued at $19,696,619.59. The trade was a 1.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, 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 value of $224,606.97. Following the transaction, the general counsel directly owned 52,807 shares of the company’s stock, valued at approximately $5,999,403.27. The trade was 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. 16.62% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Duolingo

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. EFG International AG acquired a new position in Duolingo during the 4th quarter worth approximately $26,000. Globeflex Capital L P acquired a new stake in Duolingo in the second quarter valued at approximately $77,000. AlphaCentric Advisors LLC bought a new stake in shares of Duolingo during the fourth quarter worth $33,000. Banque Cantonale Vaudoise bought a new stake in shares of Duolingo during the third quarter worth $70,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of Duolingo during the second quarter worth $89,000. 91.59% of the stock is owned by institutional investors.

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.