Robert Meese Sells 1,354 Shares of Duolingo (NASDAQ:DUOL) Stock

Duolingo, Inc. (NASDAQ:DUOL) insider Robert Meese sold 1,354 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $129.13, for a total value of $174,842.02. Following the completion of the sale, the insider owned 169,391 shares of the company’s stock, valued at $21,873,459.83. The trade was a 0.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Duolingo Trading Up 4.6%

DUOL traded up $6.39 during midday trading on Wednesday, hitting $146.03. 2,261,304 shares of the company were exchanged, compared to its average volume of 2,013,961. The firm has a market capitalization of $6.83 billion, a P/E ratio of 17.30, a P/E/G ratio of 1.07 and a beta of 0.87. Duolingo, Inc. has a 1-year low of $87.89 and a 1-year high of $355.00. The firm’s 50 day moving average price is $129.06 and its 200-day moving average price is $114.21. The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.06.

Duolingo (NASDAQ:DUOL) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 EPS for the quarter, beating analysts’ consensus estimates of $0.60 by $0.06. The firm had revenue of $298.45 million for the quarter, compared to analyst estimates of $295.58 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The business’s revenue was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.91 EPS. As a group, equities analysts forecast that Duolingo, Inc. will post 2.67 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Citigroup upgraded shares of Duolingo from a “hold” rating to a “buy” rating in a report on Tuesday. Jefferies Financial Group increased their price objective on shares of Duolingo from $95.00 to $125.00 and gave the stock a “hold” rating in a research report on Tuesday, July 14th. Wells Fargo & Company began coverage on shares of Duolingo in a research note on Tuesday. They set an “overweight” rating for the company. Susquehanna started coverage on shares of Duolingo in a report on Tuesday. They issued a “positive” rating on the stock. Finally, Morgan Stanley upped their price target on shares of Duolingo from $95.00 to $125.00 and gave the company an “equal weight” rating in a research report on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, sixteen have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $130.50.

Hedge Funds Weigh In On Duolingo

Several institutional investors have recently added to or reduced their stakes in DUOL. Root Financial Partners LLC boosted its holdings in shares of Duolingo by 194.1% during the 1st quarter. Root Financial Partners LLC now owns 250 shares of the company’s stock worth $25,000 after buying an additional 165 shares in the last quarter. EFG International AG bought a new stake in shares of Duolingo in the 4th quarter valued at $26,000. AlphaCentric Advisors LLC bought a new stake in shares of Duolingo in the 4th quarter valued at $33,000. Banque Cantonale Vaudoise lifted its position in shares of Duolingo by 51.1% during the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company’s stock valued at $34,000 after acquiring an additional 115 shares during the period. Finally, FNY Investment Advisers LLC acquired a new position in shares of Duolingo during the 2nd quarter valued at $34,000. 91.59% of the stock is owned by institutional investors and hedge funds.

Duolingo News Summary

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: D.A. Davidson’s upgrade and higher price target provided the main catalyst, implying further upside from recent trading levels. The analyst sees improving execution and strategic developments supporting Duolingo’s next phase of growth. Duolingo Nears a Turning Point and It’s Why This Analyst Upgraded the Stock to Buy
• Positive Sentiment: Recent momentum is supported by strong user growth, continued product improvements, healthy cash flow and declining artificial-intelligence costs. Duolingo’s shares had already gained 22.1% over three months, indicating that investors are rewarding progress in operating efficiency and engagement. Duolingo Stock Jumps 22.1% in Three Months
• Neutral Sentiment: Market coverage is focused on whether Duolingo can sustain its rally after the analyst upgrade. The company’s strong balance sheet and user expansion support the long-term case, but investors are increasingly focused on evidence that growth can reaccelerate. Can Duolingo Keep Its Momentum Going?
• Negative Sentiment: Risks include slower bookings and user-growth trends, rising costs and a premium valuation. These factors raise the execution bar and could limit additional gains if monetization or growth fails to meet elevated expectations. Should You Buy Duolingo as Growth Slows and Valuation Stays High?

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.