Duolingo (NASDAQ:DUOL) Hits New 1-Year High – What’s Next?

Shares of Duolingo, Inc. (NASDAQ:DUOL) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $331.29 and last traded at $331.04, with a volume of 162173 shares. The stock had previously closed at $322.07.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on DUOL. Piper Sandler increased their target price on shares of Duolingo from $271.00 to $351.00 and gave the company an “overweight” rating in a research report on Thursday, November 7th. DA Davidson lifted their price target on Duolingo from $250.00 to $350.00 and gave the stock a “buy” rating in a research note on Thursday, November 7th. Barclays increased their target price on Duolingo from $183.00 to $295.00 and gave the company an “equal weight” rating in a report on Thursday, November 7th. Seaport Res Ptn lowered shares of Duolingo from a “strong-buy” rating to a “hold” rating in a research report on Thursday, November 7th. Finally, Bank of America boosted their target price on Duolingo from $292.00 to $298.00 and gave the company a “buy” rating in a research note on Wednesday, September 25th. Five research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $331.33.

Duolingo Stock Up 2.1 %

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 firm has a 50-day moving average of $285.57 and a 200 day moving average of $226.09. The stock has a market capitalization of $14.47 billion, a price-to-earnings ratio of 175.99 and a beta of 0.79.

Duolingo (NASDAQ:DUOL) last issued its quarterly earnings results on Wednesday, November 6th. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.14. The company had revenue of $192.59 million for the quarter, compared to analyst estimates of $189.19 million. Duolingo had a return on equity of 11.74% and a net margin of 12.59%. The company’s revenue for the quarter was up 39.9% compared to the same quarter last year. During the same quarter last year, the company posted $0.06 EPS. As a group, sell-side analysts forecast that Duolingo, Inc. will post 2.02 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Matthew Skaruppa sold 14,000 shares of the stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $207.44, for a total transaction of $2,904,160.00. Following the completion of the transaction, the chief financial officer now owns 88,856 shares in the company, valued at approximately $18,432,288.64. This represents a 13.61 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Natalie Glance sold 1,500 shares of the business’s stock in a transaction dated Friday, September 6th. The shares were sold at an average price of $207.51, for a total value of $311,265.00. Following the completion of the sale, the insider now owns 139,760 shares in the company, valued at $29,001,597.60. This represents a 1.06 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,783 shares of company stock valued at $12,156,296 over the last quarter. Insiders own 18.30% of the company’s stock.

Institutional Trading of Duolingo

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. True Wealth Design LLC purchased a new position in Duolingo during the 3rd quarter valued at about $26,000. First Horizon Advisors Inc. bought a new position in shares of Duolingo during the 3rd quarter valued at $29,000. Larson Financial Group LLC purchased a new position in shares of Duolingo in the second quarter worth approximately $31,000. Blue Trust Inc. purchased a new stake in Duolingo in the second quarter worth about $32,000. Finally, GAMMA Investing LLC lifted its holdings in Duolingo by 350.0% during the second quarter. GAMMA Investing LLC now owns 171 shares of the company’s stock valued at $36,000 after purchasing an additional 133 shares in the last quarter. Hedge funds and other institutional investors 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.