Duolingo (NASDAQ:DUOL) Stock Price Down 6.4% – Time to Sell?

Duolingo, Inc. (NASDAQ:DUOL) shares dropped 6.4% during mid-day trading on Thursday . The company traded as low as $122.07 and last traded at $123.6450. Approximately 440,675 shares were traded during mid-day trading, a decline of 80% from the average daily volume of 2,235,934 shares. The stock had previously closed at $132.15.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Needham & Company LLC reissued a “buy” rating and set a $145.00 price target on shares of Duolingo in a research report on Tuesday, May 5th. Truist Financial cut shares of Duolingo from a “buy” rating to a “hold” rating and set a $100.00 price objective for the company. in a research report on Friday, February 27th. UBS Group reaffirmed a “neutral” rating on shares of Duolingo in a research note on Wednesday, June 17th. DA Davidson reiterated a “neutral” rating and issued a $120.00 target price on shares of Duolingo in a report on Wednesday, June 17th. Finally, Bank of America reissued a “neutral” rating and issued a $100.00 price target on shares of Duolingo in a research note on Friday, February 27th. Two analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $175.41.

Duolingo Trading Down 9.5%

The business has a fifty day moving average price of $111.43 and a two-hundred day moving average price of $126.47. The company has a current ratio of 2.62, a quick ratio of 2.62 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $5.57 billion, a PE ratio of 13.75, a PEG ratio of 1.03 and a beta of 0.89.

Duolingo (NASDAQ:DUOL) last issued its quarterly earnings data on Monday, May 4th. The company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.10. The firm had revenue of $291.97 million for the quarter, compared to analyst estimates of $288.60 million. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. Duolingo’s revenue was up 26.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.72 EPS. Analysts expect that Duolingo, Inc. will post 2.76 EPS for the current fiscal year.

Insider Transactions at Duolingo

In other news, insider Robert Meese sold 1,420 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $112.16, for a total value of $159,267.20. Following the transaction, the insider directly owned 170,745 shares in the company, valued at approximately $19,150,759.20. This represents a 0.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $113.61, for a total transaction of $224,606.97. Following the transaction, the general counsel directly owned 52,807 shares of the company’s stock, valued at $5,999,403.27. The trade was a 3.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last three months, insiders have sold 9,506 shares of company stock worth $1,073,864. 16.62% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of DUOL. Root Financial Partners LLC lifted its stake in 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 acquiring an additional 165 shares in the last quarter. EFG International AG purchased a new position in shares of Duolingo in the fourth quarter valued at approximately $26,000. AlphaCentric Advisors LLC purchased a new position in shares of Duolingo in the fourth quarter valued at approximately $33,000. Banque Cantonale Vaudoise grew its holdings in shares of Duolingo by 51.1% in the first quarter. Banque Cantonale Vaudoise now owns 340 shares of the company’s stock valued at $34,000 after purchasing an additional 115 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Duolingo in the fourth quarter valued at approximately $43,000. 91.59% of the stock is currently owned by hedge funds and other 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.