Duolingo (NASDAQ:DUOL) Shares Gap Down on Disappointing Earnings

Duolingo, Inc. (NASDAQ:DUOL)’s share price gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $375.78, but opened at $325.06. Duolingo shares last traded at $306.25, with a volume of 608,057 shares.

The company reported $0.31 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.19). The business had revenue of $209.55 million for the quarter, compared to analysts’ expectations of $205.49 million. Duolingo had a return on equity of 11.74% and a net margin of 12.59%.

Analysts Set New Price Targets

Several research analysts have commented on DUOL shares. Barclays lifted their price target on Duolingo from $295.00 to $330.00 and gave the stock an “equal weight” rating in a research report on Friday. JPMorgan Chase & Co. lifted their price target on Duolingo from $400.00 to $410.00 and gave the stock an “overweight” rating in a research report on Friday. Jefferies Financial Group started coverage on Duolingo in a research report on Friday, January 24th. They set a “hold” rating and a $370.00 price target on the stock. UBS Group lifted their price target on Duolingo from $408.00 to $410.00 and gave the stock a “buy” rating in a research report on Monday, January 27th. Finally, JMP Securities reaffirmed a “market perform” rating on shares of Duolingo in a research report on Friday, February 14th. Seven equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $369.09.

Insider Transactions at Duolingo

In other news, General Counsel Stephen C. Chen sold 2,064 shares of the company’s stock in a transaction that occurred on Tuesday, February 18th. The stock was sold at an average price of $435.12, for a total transaction of $898,087.68. Following the completion of the sale, the general counsel now owns 34,634 shares in the company, valued at $15,069,946.08. This represents a 5.62 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Natalie Glance sold 1,500 shares of the stock in a transaction on Friday, December 6th. The stock was sold at an average price of $369.33, for a total value of $553,995.00. Following the completion of the transaction, the insider now owns 132,239 shares of the company’s stock, valued at $48,839,829.87. The trade was a 1.12 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 305,639 shares of company stock worth $105,445,057 over the last 90 days. 18.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. True Wealth Design LLC purchased a new position in Duolingo in the third quarter worth $26,000. First Horizon Advisors Inc. purchased a new position in Duolingo in the third quarter worth $29,000. Quarry LP raised its position in Duolingo by 250.0% in the fourth quarter. Quarry LP now owns 91 shares of the company’s stock worth $30,000 after acquiring an additional 65 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in Duolingo in the fourth quarter worth $31,000. Finally, Harvest Fund Management Co. Ltd raised its position in Duolingo by 5,050.0% in the fourth quarter. Harvest Fund Management Co. Ltd now owns 103 shares of the company’s stock worth $33,000 after acquiring an additional 101 shares in the last quarter. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Duolingo Price Performance

The company has a debt-to-equity ratio of 0.07, a current ratio of 3.09 and a quick ratio of 3.09. The stock has a market cap of $13.73 billion, a PE ratio of 170.53 and a beta of 0.89. The company has a 50-day simple moving average of $359.71 and a 200-day simple moving average of $310.97.

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.