Duolingo (NASDAQ:DUOL) Shares Down 10.1% – Should You Sell?

Duolingo, Inc. (NASDAQ:DUOL) shares were down 10.1% on Monday . The company traded as low as $268.00 and last traded at $265.77. Approximately 329,795 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 814,808 shares. The stock had previously closed at $295.56.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. JMP Securities reaffirmed a “market perform” rating on shares of Duolingo in a research report on Friday, February 14th. DA Davidson lifted their price target on Duolingo from $350.00 to $400.00 and gave the stock a “buy” rating in a report on Friday, February 28th. Bank of America downgraded Duolingo from a “buy” rating to a “neutral” rating and increased their price objective for the company from $355.00 to $375.00 in a report on Wednesday, December 11th. Barclays raised their target price on Duolingo from $295.00 to $330.00 and gave the stock an “equal weight” rating in a research report on Friday, February 28th. Finally, Piper Sandler upped their price target on Duolingo from $351.00 to $390.00 and gave the company an “overweight” rating in a report on Friday, February 28th. Seven analysts have rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $375.00.

Duolingo Stock Performance

The company has a market cap of $12.44 billion, a PE ratio of 150.22 and a beta of 0.92. The stock has a 50 day simple moving average of $352.89 and a two-hundred day simple moving average of $315.68. The company has a debt-to-equity ratio of 0.07, a current ratio of 3.09 and a quick ratio of 3.09.

Duolingo (NASDAQ:DUOL) last released 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). The business had revenue of $209.55 million during the quarter, compared to analysts’ expectations of $205.49 million. Duolingo had a net margin of 12.59% and a return on equity of 11.74%. Equities analysts predict that Duolingo, Inc. will post 2.03 EPS for the current year.

Insider Activity

In other Duolingo news, insider Natalie Glance sold 9,020 shares of Duolingo stock in a transaction that occurred on Wednesday, March 5th. The stock was sold at an average price of $290.59, for a total value of $2,621,121.80. Following the transaction, the insider now directly owns 130,733 shares in the company, valued at approximately $37,989,702.47. This trade represents a 6.45 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Ahn Luis Von sold 41,759 shares of the company’s stock in a transaction that occurred on Thursday, December 12th. The stock was sold at an average price of $340.29, for a total value of $14,210,170.11. The disclosure for this sale can be found here. Over the last three months, insiders sold 124,258 shares of company stock valued at $43,372,738. Insiders own 18.30% of the company’s stock.

Hedge Funds Weigh In On Duolingo

A number of hedge funds and other institutional investors have recently bought and sold shares of DUOL. Kensington Investment Counsel LLC lifted its stake in shares of Duolingo by 0.5% in the 4th quarter. Kensington Investment Counsel LLC now owns 5,633 shares of the company’s stock worth $1,826,000 after acquiring an additional 30 shares during the period. Lido Advisors LLC raised its holdings in Duolingo by 0.3% during the fourth quarter. Lido Advisors LLC now owns 10,104 shares of the company’s stock worth $3,276,000 after purchasing an additional 30 shares in the last quarter. Mount Lucas Management LP lifted its position in Duolingo by 2.4% in the third quarter. Mount Lucas Management LP now owns 1,340 shares of the company’s stock valued at $378,000 after purchasing an additional 32 shares during the period. CIBC Asset Management Inc boosted its holdings in Duolingo by 3.1% in the 3rd quarter. CIBC Asset Management Inc now owns 1,061 shares of the company’s stock valued at $299,000 after purchasing an additional 32 shares in the last quarter. Finally, Atria Investments Inc boosted its holdings in Duolingo by 3.9% in the 4th quarter. Atria Investments Inc now owns 1,029 shares of the company’s stock valued at $334,000 after purchasing an additional 39 shares in the last quarter. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

Duolingo Company Profile

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.