Duolingo’s (DUOL) Buy Rating Reiterated at DA Davidson

Duolingo (NASDAQ:DUOL)‘s stock had its “buy” rating reissued by equities researchers at DA Davidson in a research note issued on Tuesday, Benzinga reports. They currently have a $250.00 target price on the stock. DA Davidson’s price objective would suggest a potential upside of 15.21% from the company’s previous close.

Other equities analysts have also issued reports about the company. Bank of America raised Duolingo from a “neutral” rating to a “buy” rating and set a $245.00 target price for the company in a report on Friday, July 26th. Piper Sandler restated an “overweight” rating and set a $271.00 price objective on shares of Duolingo in a research note on Friday, August 30th. Barclays cut their target price on Duolingo from $230.00 to $183.00 and set an “equal weight” rating on the stock in a research note on Friday, August 9th. Evercore ISI raised shares of Duolingo to a “strong-buy” rating in a report on Monday, August 5th. Finally, Needham & Company LLC cut their price objective on shares of Duolingo from $267.00 to $245.00 and set a “buy” rating on the stock in a research report on Thursday, August 8th. One analyst has rated the stock with a sell rating, two have assigned a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $237.40.

Duolingo Stock Performance

Shares of DUOL stock traded down $0.10 on Tuesday, hitting $217.00. 17,170 shares of the stock traded hands, compared to its average volume of 730,261. The company has a market capitalization of $9.45 billion, a PE ratio of 223.71 and a beta of 0.75. The company’s fifty day moving average is $190.26 and its 200 day moving average is $201.97. The company has a debt-to-equity ratio of 0.07, a current ratio of 3.28 and a quick ratio of 3.28. Duolingo has a 1-year low of $140.16 and a 1-year high of $251.30.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings results on Wednesday, August 7th. The company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.19. Duolingo had a net margin of 10.44% and a return on equity of 9.64%. The company had revenue of $178.30 million for the quarter, compared to the consensus estimate of $177.13 million. During the same period last year, the firm posted $0.08 EPS. The company’s revenue for the quarter was up 40.6% on a year-over-year basis. On average, equities research analysts predict that Duolingo will post 1.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, General Counsel Stephen C. Chen sold 19,464 shares of the stock in a transaction that occurred on Friday, August 30th. The shares were sold at an average price of $211.55, for a total value of $4,117,609.20. Following the completion of the transaction, the general counsel now directly owns 35,558 shares in the company, valued at $7,522,294.90. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, insider Natalie Glance sold 1,500 shares of Duolingo stock in a transaction that occurred on Friday, September 6th. The shares were sold at an average price of $207.51, for a total value of $311,265.00. Following the transaction, the insider now owns 139,760 shares of the company’s stock, valued at approximately $29,001,597.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Stephen C. Chen sold 19,464 shares of the stock in a transaction that occurred on Friday, August 30th. The shares were sold at an average price of $211.55, for a total transaction of $4,117,609.20. Following the sale, the general counsel now directly owns 35,558 shares of the company’s stock, valued at $7,522,294.90. The disclosure for this sale can be found here. In the last three months, insiders have sold 92,555 shares of company stock worth $18,302,871. 18.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Cim LLC grew its holdings in shares of Duolingo by 8.2% in the 2nd quarter. Cim LLC now owns 5,034 shares of the company’s stock worth $1,058,000 after acquiring an additional 383 shares during the last quarter. Clearbridge Investments LLC raised its holdings in Duolingo by 34.3% during the 2nd quarter. Clearbridge Investments LLC now owns 173,867 shares of the company’s stock worth $36,281,000 after buying an additional 44,413 shares during the period. Teachers Retirement System of The State of Kentucky lifted its stake in Duolingo by 23.7% during the second quarter. Teachers Retirement System of The State of Kentucky now owns 67,114 shares of the company’s stock valued at $14,005,000 after buying an additional 12,860 shares in the last quarter. Creative Planning boosted its holdings in shares of Duolingo by 37.0% in the second quarter. Creative Planning now owns 3,932 shares of the company’s stock worth $820,000 after buying an additional 1,061 shares during the period. Finally, Driehaus Capital Management LLC increased its position in shares of Duolingo by 4.6% in the second quarter. Driehaus Capital Management LLC now owns 287,210 shares of the company’s stock worth $59,932,000 after acquiring an additional 12,666 shares in the last quarter. Institutional investors and hedge funds own 91.59% of the company’s stock.

About Duolingo

Duolingo, Inc operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam.