Duolingo (NASDAQ:DUOL) Upgraded to “Buy” at Bank of America

Bank of America upgraded shares of Duolingo (NASDAQ:DUOL) from a neutral rating to a buy rating in a research note issued to investors on Monday, Marketbeat.com reports. The brokerage currently has $250.00 price target on the stock, down from their prior price target of $301.00.

Several other analysts have also recently issued reports on DUOL. Evercore ISI set a $330.00 price objective on Duolingo and gave the company an “outperform” rating in a research note on Thursday, November 6th. UBS Group lowered their price target on Duolingo from $500.00 to $450.00 and set a “buy” rating for the company in a report on Monday, October 20th. Wells Fargo & Company dropped their price target on Duolingo from $239.00 to $185.00 and set an “underweight” rating on the stock in a research report on Thursday, November 6th. Citigroup downgraded shares of Duolingo from a “buy” rating to a “market perform” rating in a report on Thursday, November 6th. Finally, Needham & Company LLC lowered their target price on shares of Duolingo from $460.00 to $300.00 and set a “buy” rating for the company in a research note on Thursday, November 6th. Eleven equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $314.74.

Duolingo Stock Up 4.9%

DUOL stock opened at $185.15 on Monday. The company has a current ratio of 2.82, a quick ratio of 2.82 and a debt-to-equity ratio of 0.07. The firm has a 50 day simple moving average of $197.39 and a 200-day simple moving average of $289.08. The company has a market capitalization of $8.56 billion, a P/E ratio of 23.47, a PEG ratio of 0.90 and a beta of 0.87. Duolingo has a twelve month low of $166.27 and a twelve month high of $544.93.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $5.95 EPS for the quarter, beating analysts’ consensus estimates of $0.72 by $5.23. The firm had revenue of $271.71 million for the quarter, compared to the consensus estimate of $260.14 million. Duolingo had a net margin of 40.03% and a return on equity of 14.02%. The firm’s revenue was up 41.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.49 EPS. On average, equities research analysts predict that Duolingo will post 2.03 earnings per share for the current fiscal year.

Insider Activity at Duolingo

In other news, CFO Matthew Skaruppa sold 3,059 shares of the stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $175.76, for a total value of $537,649.84. Following the completion of the transaction, the chief financial officer directly owned 37,487 shares in the company, valued at $6,588,715.12. This trade represents a 7.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Natalie Glance sold 2,471 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $175.79, for a total transaction of $434,377.09. Following the transaction, the insider owned 111,166 shares in the company, valued at $19,541,871.14. This represents a 2.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 53,169 shares of company stock valued at $11,605,151. 18.30% of the stock is currently owned by insiders.

Institutional Trading of Duolingo

Institutional investors have recently modified their holdings of the company. Bryce Point Capital LLC bought a new stake in shares of Duolingo in the 2nd quarter worth approximately $946,000. Vanguard Group Inc. grew its position in Duolingo by 3.3% in the second quarter. Vanguard Group Inc. now owns 3,647,951 shares of the company’s stock worth $1,495,733,000 after buying an additional 116,135 shares during the last quarter. Los Angeles Capital Management LLC acquired a new position in Duolingo in the second quarter worth approximately $14,377,000. Rhumbline Advisers increased its holdings in shares of Duolingo by 17.2% in the second quarter. Rhumbline Advisers now owns 124,376 shares of the company’s stock valued at $50,997,000 after buying an additional 18,210 shares in the last quarter. Finally, Jefferies Financial Group Inc. lifted its position in shares of Duolingo by 117.0% during the 2nd quarter. Jefferies Financial Group Inc. now owns 26,367 shares of the company’s stock valued at $10,811,000 after acquiring an additional 14,219 shares during the last quarter. Institutional investors and hedge funds own 91.59% of the company’s stock.

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.