Duolingo (NASDAQ:DUOL) Hits New 1-Year Low – What’s Next?

Duolingo, Inc. (NASDAQ:DUOL)’s share price hit a new 52-week low on Friday . The company traded as low as $91.61 and last traded at $93.6020, with a volume of 450844 shares traded. The stock had previously closed at $98.11.

Analyst Upgrades and Downgrades

Several research analysts have commented on DUOL shares. Weiss Ratings restated a “hold (c)” rating on shares of Duolingo in a research report on Monday, December 29th. Bank of America reissued a “neutral” rating and set a $100.00 price target on shares of Duolingo in a report on Friday, February 27th. Truist Financial lowered Duolingo from a “buy” rating to a “hold” rating and set a $100.00 price objective on the stock. in a research note on Friday, February 27th. Morgan Stanley reissued an “equal weight” rating and set a $100.00 target price (down from $245.00) on shares of Duolingo in a research note on Friday, February 27th. Finally, Evercore restated a “hold” rating and issued a $114.00 price target on shares of Duolingo in a research note on Friday, February 27th. Four research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $206.32.

Duolingo Stock Performance

The company has a fifty day moving average price of $114.72 and a two-hundred day moving average price of $194.03. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.61 and a quick ratio of 2.61. The company has a market capitalization of $4.41 billion, a P/E ratio of 11.19, a PEG ratio of 0.66 and a beta of 0.90.

Duolingo (NASDAQ:DUOL) last posted its earnings results on Thursday, February 26th. The company reported $0.91 EPS for the quarter, topping the consensus estimate 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. The firm’s quarterly revenue was up 35.0% on a year-over-year basis. Equities analysts forecast that Duolingo, Inc. will post 2.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Duolingo

In other Duolingo news, CFO Matthew Skaruppa sold 3,986 shares of Duolingo stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $113.52, for a total transaction of $452,490.72. Following the transaction, the chief financial officer directly owned 31,631 shares of the company’s stock, valued at approximately $3,590,751.12. The trade was a 11.19% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director James H. Shelton purchased 5,000 shares of Duolingo stock in a transaction on Tuesday, March 3rd. The stock was bought at an average price of $99.76 per share, for a total transaction of $498,800.00. Following the transaction, the director directly owned 9,632 shares in the company, valued at approximately $960,888.32. The trade was a 107.94% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders sold 14,939 shares of company stock worth $1,676,291 over the last 90 days. Company insiders own 15.67% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in DUOL. EFG International AG bought a new stake in shares of Duolingo in the 4th quarter valued at $26,000. Atlantic Union Bankshares Corp acquired a new position in Duolingo in the third quarter valued at $32,000. AlphaCentric Advisors LLC bought a new stake in Duolingo during the fourth quarter valued at $33,000. Farther Finance Advisors LLC grew its holdings in Duolingo by 82.2% during the 3rd quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock worth $43,000 after acquiring an additional 60 shares during the period. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of Duolingo in the 4th quarter worth about $43,000. Institutional investors own 91.59% of the company’s stock.

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.