Duolingo, Inc. (NASDAQ:DUOL) Receives Average Rating of “Hold” from Analysts

Shares of Duolingo, Inc. (NASDAQ:DUOL) have earned an average recommendation of “Hold” from the twenty-three research firms that are presently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, seventeen have issued a hold recommendation and four have issued a buy recommendation on the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $206.3158.

DUOL has been the topic of a number of analyst reports. BMO Capital Markets raised shares of Duolingo to a “buy” rating in a research report on Monday, January 12th. DA Davidson decreased their target price on shares of Duolingo from $170.00 to $85.00 and set a “neutral” rating for the company in a research report on Friday, February 27th. Needham & Company LLC lowered their target price on shares of Duolingo from $300.00 to $145.00 and set a “buy” rating for the company in a research note on Friday, February 27th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $100.00 price target (down from $245.00) on shares of Duolingo in a report on Friday, February 27th. Finally, Barclays reduced their price target on Duolingo from $230.00 to $110.00 and set an “equal weight” rating on the stock in a research report on Monday, March 2nd.

Insider Activity at Duolingo

In other news, Director James H. Shelton purchased 5,000 shares of the stock in a transaction on Tuesday, March 3rd. The stock was bought at an average price of $99.76 per share, with a total value of $498,800.00. Following the transaction, the director owned 9,632 shares in the company, valued at $960,888.32. The trade was a 107.94% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Natalie Glance sold 3,545 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $113.51, for a total value of $402,392.95. Following the completion of the transaction, the insider directly owned 115,380 shares in the company, valued at $13,096,783.80. This represents a 2.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 14,939 shares of company stock worth $1,676,291 in the last 90 days. 18.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Duolingo

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC boosted its holdings in Duolingo by 1,868.2% during the first quarter. NewEdge Advisors LLC now owns 433 shares of the company’s stock worth $134,000 after buying an additional 411 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in Duolingo by 123.9% in the first 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 raised its position in shares of Duolingo by 28.3% in the first quarter. Focus Partners Wealth now owns 2,021 shares of the company’s stock worth $628,000 after acquiring an additional 446 shares during the period. Creative Planning raised its position in shares of Duolingo by 32.4% in the second quarter. Creative Planning now owns 3,454 shares of the company’s stock worth $1,416,000 after acquiring an additional 846 shares during the period. Finally, Handelsbanken Fonder AB boosted its stake in shares of Duolingo by 1.0% during the 2nd quarter. Handelsbanken Fonder AB now owns 9,700 shares of the company’s stock worth $3,977,000 after acquiring an additional 100 shares in the last quarter. 91.59% of the stock is owned by institutional investors and hedge funds.

More Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Promotion to bolster DET marketing: Duolingo elevated Tara Kapur to Director / Head of Marketing for the Duolingo English Test — this strengthens leadership focused on revenue-driving test product marketing. Duolingo elevates Tara Kapur to Director of Marketing, Duolingo English Test
• Positive Sentiment: Product/engagement experiment: Duolingo is trialing a tool that can lock other apps until users complete daily lessons — a move aimed at increasing daily active use and retention if broadly adopted. Duolingo experiments with tool to lock other apps until daily lessons are complete
• Neutral Sentiment: Short-interest reporting appears to be a data glitch: several March short-interest entries show “0 shares” and NaN changes across different filings — this looks like a reporting/aggregation error rather than meaningful new bearish positioning, but it can create temporary market noise. (Multiple short-interest releases dated March 23–24.)
• Neutral Sentiment: Market commentary: A recent note highlighted that DUOL recently outperformed the market intraday — useful context but not a driver of fundamentals. Duolingo, Inc. (DUOL) Exceeds Market Returns: Some Facts to Consider
• Negative Sentiment: Shareholder litigation alert: Faruqi & Faruqi announced an investigation into Duolingo on behalf of investors — such probes can weigh on sentiment and introduce legal risk or potential settlements. DUOL SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Duolingo

Duolingo Stock Performance

DUOL stock opened at $97.68 on Wednesday. Duolingo has a twelve month low of $91.99 and a twelve month high of $544.93. The firm has a market cap of $4.52 billion, a price-to-earnings ratio of 11.46, a PEG ratio of 0.69 and a beta of 0.90. The business’s fifty day simple moving average is $118.09 and its two-hundred day simple moving average is $197.18. The company has a quick ratio of 2.61, a current ratio of 2.61 and a debt-to-equity ratio of 0.07.

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

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.