Duolingo (NASDAQ:DUOL) Trading Up 5.3% – Should You Buy?

Duolingo, Inc. (NASDAQ:DUOL)’s stock price traded up 5.3% during mid-day trading on Tuesday . The stock traded as high as $324.20 and last traded at $327.06. 404,885 shares changed hands during mid-day trading, a decline of 44% from the average session volume of 720,829 shares. The stock had previously closed at $310.54.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on DUOL shares. DA Davidson increased their price objective on shares of Duolingo from $400.00 to $410.00 and gave the stock a “buy” rating in a research note on Thursday, March 27th. Scotiabank started coverage on Duolingo in a research report on Thursday, December 5th. They set a “sector outperform” rating and a $425.00 target price on the stock. UBS Group set a $400.00 price objective on Duolingo in a research note on Tuesday, March 18th. Citizens Jmp upgraded Duolingo from a “market perform” rating to an “outperform” rating and set a $400.00 price objective for the company in a research note on Tuesday, March 18th. Finally, The Goldman Sachs Group raised their target price on shares of Duolingo from $275.00 to $340.00 and gave the stock a “neutral” rating in a research note on Monday, March 3rd. Seven equities research analysts have rated the stock with a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Duolingo presently has a consensus rating of “Moderate Buy” and a consensus price target of $377.08.

Duolingo Price Performance

The company has a quick ratio of 3.09, a current ratio of 3.09 and a debt-to-equity ratio of 0.07. The firm’s fifty day moving average price is $346.93 and its 200 day moving average price is $325.09. The stock has a market cap of $14.81 billion, a PE ratio of 178.90 and a beta of 0.92.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings results on Thursday, February 27th. The company reported $0.31 EPS for the quarter, missing the consensus estimate of $0.50 by ($0.19). Duolingo had a return on equity of 11.74% and a net margin of 12.59%. The company had revenue of $209.55 million during the quarter, compared to analysts’ expectations of $205.49 million. As a group, equities analysts expect that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Insider Transactions at Duolingo

In related news, General Counsel Stephen C. Chen sold 2,064 shares of the business’s stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $435.12, for a total value of $898,087.68. Following the sale, the general counsel now owns 34,634 shares in the company, valued at approximately $15,069,946.08. The trade was a 5.62 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Ahn Luis Von sold 8,000 shares of the stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $321.00, for a total transaction of $2,568,000.00. The disclosure for this sale can be found here. Insiders have sold 100,850 shares of company stock valued at $34,389,695 in the last ninety days. Corporate insiders own 18.30% of the company’s stock.

Institutional Investors Weigh In On Duolingo

Several large investors have recently added to or reduced their stakes in DUOL. FMR LLC increased its position in shares of Duolingo by 39.9% during the 4th quarter. FMR LLC now owns 3,726,561 shares of the company’s stock valued at $1,208,263,000 after purchasing an additional 1,063,327 shares during the last quarter. Norges Bank bought a new position in Duolingo during the fourth quarter valued at $152,296,000. T. Rowe Price Investment Management Inc. increased its position in Duolingo by 548.8% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 470,834 shares of the company’s stock valued at $152,659,000 after acquiring an additional 398,259 shares during the last quarter. Invesco Ltd. raised its stake in shares of Duolingo by 53.5% in the fourth quarter. Invesco Ltd. now owns 1,085,066 shares of the company’s stock valued at $351,811,000 after acquiring an additional 378,225 shares during the period. Finally, Voloridge Investment Management LLC lifted its holdings in shares of Duolingo by 270.3% in the 4th quarter. Voloridge Investment Management LLC now owns 146,674 shares of the company’s stock worth $47,556,000 after acquiring an additional 107,063 shares during the last quarter. 91.59% of the stock is owned by institutional investors.

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.