Duolingo (NASDAQ:DUOL) Downgraded by Seaport Res Ptn to “Hold”

Seaport Res Ptn downgraded shares of Duolingo (NASDAQ:DUOL) from a strong-buy rating to a hold rating in a report released on Thursday,Zacks.com reports. Seaport Res Ptn also issued estimates for Duolingo’s FY2024 earnings at $2.11 EPS, Q1 2025 earnings at $0.70 EPS, Q2 2025 earnings at $0.73 EPS, Q3 2025 earnings at $0.79 EPS and Q4 2025 earnings at $0.93 EPS.

Several other analysts have also issued reports on DUOL. Needham & Company LLC boosted their price objective on shares of Duolingo from $310.00 to $370.00 and gave the company a “buy” rating in a report on Thursday. The Goldman Sachs Group boosted their target price on Duolingo from $250.00 to $275.00 and gave the company a “neutral” rating in a research report on Thursday. Piper Sandler lifted their target price on Duolingo from $271.00 to $351.00 and gave the company an “overweight” rating in a research report on Thursday. Wolfe Research started coverage on shares of Duolingo in a research note on Tuesday, July 16th. They issued a “peer perform” rating for the company. Finally, Barclays boosted their price target on shares of Duolingo from $183.00 to $295.00 and gave the stock an “equal weight” rating in a research note on Thursday. Five analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $325.44.

Duolingo Price Performance

Shares of NASDAQ DUOL traded up $5.60 during mid-day trading on Thursday, reaching $321.42. The company’s stock had a trading volume of 334,165 shares, compared to its average volume of 700,702. The stock has a 50-day moving average of $268.56 and a two-hundred day moving average of $220.76. The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.28 and a current ratio of 3.28. The stock has a market capitalization of $13.99 billion, a P/E ratio of 225.59 and a beta of 0.79. Duolingo has a 1-year low of $145.05 and a 1-year high of $330.61.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings results on Wednesday, November 6th. The company reported $0.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.36 by $0.13. Duolingo had a return on equity of 9.64% and a net margin of 10.44%. The business had revenue of $192.59 million during the quarter, compared to analyst estimates of $189.19 million. During the same period in the prior year, the business earned $0.06 earnings per share. The business’s revenue was up 39.9% compared to the same quarter last year. On average, equities research analysts anticipate that Duolingo will post 1.87 EPS for the current fiscal year.

Insider Buying and Selling at Duolingo

In related news, CFO Matthew Skaruppa sold 17,591 shares of the stock in a transaction dated Wednesday, August 21st. The shares were sold at an average price of $207.27, for a total transaction of $3,646,086.57. Following the completion of the transaction, the chief financial officer now directly owns 88,856 shares of the company’s stock, valued at $18,417,183.12. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. In other news, General Counsel Stephen C. Chen sold 19,464 shares of the firm’s stock in a transaction on Friday, August 30th. The stock was sold at an average price of $211.55, for a total transaction of $4,117,609.20. Following the sale, the general counsel now owns 35,558 shares in the company, valued at $7,522,294.90. This trade represents a 0.00 % 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, CFO Matthew Skaruppa sold 17,591 shares of the business’s stock in a transaction that occurred on Wednesday, August 21st. The shares were sold at an average price of $207.27, for a total transaction of $3,646,086.57. Following the completion of the sale, the chief financial officer now owns 88,856 shares of the company’s stock, valued at approximately $18,417,183.12. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 70,374 shares of company stock valued at $15,802,382. 18.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in shares of Duolingo by 2.0% in the 1st quarter. Vanguard Group Inc. now owns 3,387,433 shares of the company’s stock valued at $747,200,000 after purchasing an additional 67,004 shares during the period. Whale Rock Capital Management LLC increased its position in Duolingo by 23.9% during the first quarter. Whale Rock Capital Management LLC now owns 1,275,189 shares of the company’s stock worth $281,281,000 after acquiring an additional 245,599 shares during the period. Dragoneer Investment Group LLC acquired a new position in Duolingo during the 2nd quarter valued at $204,768,000. American Century Companies Inc. boosted its holdings in Duolingo by 25.1% in the 2nd quarter. American Century Companies Inc. now owns 498,957 shares of the company’s stock valued at $104,117,000 after purchasing an additional 100,167 shares during the period. Finally, Bank of New York Mellon Corp increased its stake in Duolingo by 153.1% during the second quarter. Bank of New York Mellon Corp now owns 395,123 shares of the company’s stock valued at $82,450,000 after acquiring an additional 238,990 shares during the period. 91.59% of the stock is currently 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.