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

Duolingo, Inc. (NASDAQ:DUOL) dropped 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 trading, a decline of 60% from the average daily volume of 814,808 shares. The stock had previously closed at $295.56.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on DUOL. Barclays lifted their target price on Duolingo from $295.00 to $330.00 and gave the company an “equal weight” rating in a research note on Friday, February 28th. The Goldman Sachs Group upped their target price on Duolingo from $275.00 to $340.00 and gave the company a “neutral” rating in a research report on Monday, March 3rd. Jefferies Financial Group began coverage on shares of Duolingo in a report on Friday, January 24th. They issued a “hold” rating and a $370.00 price target on the stock. Bank of America lowered Duolingo from a “buy” rating to a “neutral” rating and lifted their price objective for the company from $355.00 to $375.00 in a research note on Wednesday, December 11th. Finally, Scotiabank initiated coverage on shares of Duolingo in a research note on Thursday, December 5th. They issued a “sector outperform” rating and a $425.00 target price for the company. Seven 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. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $375.00.

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’s fifty day moving average price is $352.89 and its 200-day moving average price is $315.68. The firm has a market cap of $12.44 billion, a PE ratio of 150.22 and a beta of 0.92.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings data on Thursday, February 27th. The company reported $0.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.19). Duolingo had a net margin of 12.59% and a return on equity of 11.74%. The firm had revenue of $209.55 million during the quarter, compared to analysts’ expectations of $205.49 million. As a group, equities analysts expect that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Severin Hacker sold 10,000 shares of Duolingo stock in a transaction that occurred on Thursday, December 19th. The shares were sold at an average price of $336.82, for a total value of $3,368,200.00. Following the completion of the transaction, the insider now owns 72 shares in the company, valued at approximately $24,251.04. The trade was a 99.29 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, 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 sale, the general counsel now directly owns 34,634 shares in the company, valued at approximately $15,069,946.08. The trade was a 5.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 124,258 shares of company stock valued at $43,372,738. 18.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Duolingo

Institutional investors have recently modified their holdings of the business. Catalyst Capital Advisors LLC purchased a new position in Duolingo in the fourth quarter valued at $1,994,000. Lecap Asset Management Ltd. acquired a new stake in Duolingo in the 4th quarter valued at about $429,000. Charles Schwab Investment Management Inc. raised its position in Duolingo by 42.2% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 342,280 shares of the company’s stock valued at $96,530,000 after purchasing an additional 101,653 shares in the last quarter. Rockefeller Capital Management L.P. purchased a new position in shares of Duolingo in the 3rd quarter valued at about $4,350,000. Finally, Diversified Trust Co acquired a new position in shares of Duolingo during the fourth quarter worth about $784,000. Institutional investors and hedge funds own 91.59% of the company’s stock.

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.