Duolingo (NASDAQ:DUOL) Shares Down 5.8% – What’s Next?

Duolingo, Inc. (NASDAQ:DUOL) dropped 5.8% during trading on Tuesday . The stock traded as low as $328.58 and last traded at $330.73. Approximately 331,507 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 514,373 shares. The stock had previously closed at $351.13.

Analyst Ratings Changes

DUOL has been the subject of several analyst reports. Piper Sandler raised their target price on shares of Duolingo from $271.00 to $351.00 and gave the company an “overweight” rating in a research note on Thursday, November 7th. Scotiabank initiated coverage on shares of Duolingo in a research report on Thursday, December 5th. They issued a “sector outperform” rating and a $425.00 price objective for the company. JMP Securities cut shares of Duolingo from an “outperform” rating to a “market perform” rating in a report on Monday, October 14th. Seaport Res Ptn cut Duolingo from a “strong-buy” rating to a “hold” rating in a report on Thursday, November 7th. Finally, The Goldman Sachs Group boosted their price target on Duolingo from $250.00 to $275.00 and gave the stock a “neutral” rating in a research report on Thursday, November 7th. Six research analysts have rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $353.90.

Duolingo Stock Performance

The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.09 and a current ratio of 3.09. The company has a fifty day moving average of $338.70 and a two-hundred day moving average of $272.45. The firm has a market capitalization of $14.78 billion, a price-to-earnings ratio of 183.60 and a beta of 0.87.

Duolingo (NASDAQ:DUOL) last posted its earnings results on Wednesday, November 6th. The company reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.14. Duolingo had a return on equity of 11.74% and a net margin of 12.59%. The company had revenue of $192.59 million during the quarter, compared to the consensus estimate of $189.19 million. During the same quarter last year, the firm earned $0.06 earnings per share. The company’s revenue was up 39.9% on a year-over-year basis. As a group, equities research analysts predict that Duolingo, Inc. will post 2.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Duolingo news, insider Severin Hacker sold 188,901 shares of the stock in a transaction dated Wednesday, December 11th. The shares were sold at an average price of $339.54, for a total transaction of $64,139,445.54. Following the sale, the insider now directly owns 72 shares in the company, valued at $24,446.88. This represents a 99.96 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Natalie Glance sold 1,500 shares of the business’s stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $313.36, for a total transaction of $470,040.00. Following the completion of the transaction, the insider now owns 136,760 shares of the company’s stock, valued at $42,855,113.60. The trade was a 1.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 281,124 shares of company stock worth $95,033,738 in the last quarter. Corporate insiders own 18.30% of the company’s stock.

Institutional Trading of Duolingo

Large investors have recently made changes to their positions in the company. Robeco Institutional Asset Management B.V. bought a new position in Duolingo in the fourth quarter valued at about $1,803,000. R Squared Ltd acquired a new position in Duolingo during the 4th quarter worth approximately $55,000. FSC Wealth Advisors LLC bought a new position in Duolingo in the 4th quarter valued at approximately $59,000. Pacer Advisors Inc. boosted its position in Duolingo by 362.3% in the fourth quarter. Pacer Advisors Inc. now owns 43,833 shares of the company’s stock valued at $14,212,000 after buying an additional 34,351 shares in the last quarter. Finally, KBC Group NV grew its stake in shares of Duolingo by 504.7% during the fourth quarter. KBC Group NV now owns 5,358 shares of the company’s stock worth $1,737,000 after buying an additional 4,472 shares during the last quarter. Institutional investors and hedge funds own 91.59% of the company’s stock.

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.