Duolingo’s (DUOL) Buy Rating Reiterated at DA Davidson

DA Davidson reissued their buy rating on shares of Duolingo (NASDAQ:DUOL) in a research report released on Tuesday morning,Benzinga reports. DA Davidson currently has a $175.00 price objective on the stock.

A number of other equities analysts have also recently commented on DUOL. Scotiabank set a $120.00 target price on Duolingo in a report on Thursday, August 6th. Needham & Company LLC reaffirmed a “buy” rating and issued a $145.00 price target on shares of Duolingo in a research note on Thursday, August 6th. Barclays boosted their price target on Duolingo from $110.00 to $115.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Bank of America downgraded Duolingo from a “neutral” rating to an “underperform” rating and reduced their price objective for the company from $103.00 to $93.00 in a research note on Tuesday, August 4th. Finally, JPMorgan Chase & Co. raised their price objective on Duolingo from $125.00 to $135.00 and gave the company a “neutral” rating in a report on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $124.38.

Duolingo Stock Up 2.9%

DUOL stock opened at $146.57 on Tuesday. Duolingo has a 52 week low of $87.89 and a 52 week high of $353.00. The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.06. The firm has a 50-day simple moving average of $142.66 and a 200-day simple moving average of $122.42. The stock has a market capitalization of $6.86 billion, a P/E ratio of 17.37, a P/E/G ratio of 1.17 and a beta of 1.05.

Duolingo (NASDAQ:DUOL) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.60 by $0.06. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The firm had revenue of $298.45 million for the quarter, compared to analyst estimates of $295.58 million. During the same period last year, the company posted $0.91 EPS. Duolingo’s quarterly revenue was up 18.3% compared to the same quarter last year. Equities analysts forecast that Duolingo will post 2.62 earnings per share for the current fiscal year.

Insider Buying and Selling at Duolingo

In related news, General Counsel Stephen C. Chen sold 8,072 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $149.33, for a total value of $1,205,391.76. Following the completion of the sale, the general counsel owned 43,769 shares of the company’s stock, valued at approximately $6,536,024.77. This trade represents a 15.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Natalie Glance sold 2,751 shares of Duolingo stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $129.13, for a total value of $355,236.63. Following the transaction, the insider owned 170,650 shares in the company, valued at approximately $22,036,034.50. The trade was a 1.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 140,694 shares of company stock worth $20,991,914. 16.62% of the stock is owned by company insiders.

Institutional Trading of Duolingo

Hedge funds and other institutional investors have recently modified their holdings of the stock. Capital World Investors boosted its position in shares of Duolingo by 0.5% during the 4th quarter. Capital World Investors now owns 2,241,378 shares of the company’s stock valued at $393,362,000 after acquiring an additional 11,140 shares during the last quarter. Bank of America Corp DE increased its position in Duolingo by 511.2% during the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock worth $131,325,000 after purchasing an additional 1,114,315 shares during the last quarter. State of Michigan Retirement System increased its position in Duolingo by 112.9% during the first quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company’s stock worth $117,624,000 after purchasing an additional 632,807 shares during the last quarter. Geode Capital Management LLC raised its stake in Duolingo by 2.5% during the fourth quarter. Geode Capital Management LLC now owns 811,809 shares of the company’s stock worth $142,501,000 after purchasing an additional 19,698 shares during the period. Finally, Renaissance Technologies LLC raised its stake in Duolingo by 91.3% during the first quarter. Renaissance Technologies LLC now owns 603,806 shares of the company’s stock worth $59,517,000 after purchasing an additional 288,252 shares during the period. 91.59% of the stock is owned by institutional investors and hedge funds.

Duolingo News Summary

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: DA Davidson assigned Duolingo a “Buy” rating, providing a fresh bullish signal after the stock’s substantial decline over the past year. The upgrade or initiation may be supporting renewed investor interest. Duolingo Earns Buy Rating from DA Davidson
• Positive Sentiment: Duolingo partnered with Taco Bell for Global Taco Day through multilingual sauce packets, social-media activity and promotional campaigns. While the companies did not disclose a material financial contribution, the collaboration could increase brand visibility, user engagement and customer acquisition. Taco Bell and Duolingo Take National Taco Day Global
• Positive Sentiment: Recent market performance has improved: Duolingo closed the latest reported session at $146.57, up 2.93% from the prior session, and a market recap highlighted the shares’ outperformance. The move appears driven more by sentiment, analyst support and marketing visibility than by a newly reported earnings result. Duolingo Exceeds Market Returns
• Neutral Sentiment: Comparisons with Afya, Laureate Education and Coursera frame Duolingo as a relatively strong education-technology business, but they do not introduce new company-specific financial information.
• Negative Sentiment: Insider Ahn Luis Von sold 46,682 shares. The transaction may raise concerns about insider confidence, although insider sales can also reflect personal financial planning. Duolingo Insider Share Sale
• Negative Sentiment: One bearish view argues that Duolingo is emphasizing user growth over monetization, while broader commentary questions whether artificial-intelligence tools could weaken demand for language-learning apps. These concerns could limit the stock’s recovery despite its recent increase. Why I’m Not Buying Duolingo Stock Yet

Duolingo Company Profile

Duolingo, Inc develops digital learning products designed to make education accessible through technology and gamification. Its flagship Duolingo app offers language-learning courses, practice exercises and other interactive features for learners of languages including Spanish, English, French, German and Japanese, among others.

The company also offers subscription plans, including Super Duolingo and Duolingo Max, which provide additional features and, in the case of Duolingo Max, artificial-intelligence-powered learning tools.