Duolingo (NASDAQ:DUOL) Shares Gap Down After Earnings Miss

Duolingo, Inc. (NASDAQ:DUOL)’s share price gapped down prior to trading on Friday following a dissappointing 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 changing hands.

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

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Piper Sandler raised their price target on shares of Duolingo from $351.00 to $390.00 and gave the company an “overweight” rating in a report on Friday. Needham & Company LLC raised their target price on shares of Duolingo from $385.00 to $400.00 and gave the company a “buy” rating in a research note on Friday. JMP Securities reaffirmed a “market perform” rating on shares of Duolingo in a research report on Friday, February 14th. Seaport Res Ptn downgraded Duolingo from a “strong-buy” rating to a “hold” rating in a report on Thursday, November 7th. Finally, UBS Group boosted their price objective on Duolingo from $408.00 to $410.00 and gave the stock a “buy” rating in a research note on Monday, January 27th. Seven equities research analysts have rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $369.09.

Insider Buying and Selling at Duolingo

In other Duolingo news, insider Severin Hacker sold 188,901 shares of the firm’s stock in a transaction on 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 completion of the transaction, the insider now directly owns 72 shares of the company’s stock, valued at $24,446.88. This trade represents a 99.96 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Natalie Glance sold 1,500 shares of Duolingo stock in a transaction dated 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. This trade represents a 1.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 305,639 shares of company stock worth $105,445,057 in the last 90 days. 18.30% of the stock is owned by corporate insiders.

Institutional Trading of Duolingo

Several institutional investors and hedge funds have recently bought and sold shares of DUOL. True Wealth Design LLC bought a new stake in shares of Duolingo in the 3rd quarter valued at approximately $26,000. First Horizon Advisors Inc. acquired a new position in Duolingo in the third quarter worth $29,000. Quarry LP boosted its holdings in Duolingo by 250.0% in the fourth quarter. Quarry LP now owns 91 shares of the company’s stock worth $30,000 after purchasing an additional 65 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new stake in Duolingo during the fourth quarter valued at $31,000. Finally, Harvest Fund Management Co. Ltd raised its holdings in shares of Duolingo by 5,050.0% during the fourth quarter. Harvest Fund Management Co. Ltd now owns 103 shares of the company’s stock worth $33,000 after purchasing an additional 101 shares during the period. Institutional investors and hedge funds own 91.59% of the company’s stock.

Duolingo Stock Performance

The stock’s 50-day moving average price is $359.71 and its 200-day moving average price is $310.97. The company has a current ratio of 3.09, a quick ratio of 3.09 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $13.73 billion, a P/E ratio of 170.53 and a beta of 0.89.

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.