Duolingo, Inc. (NASDAQ:DUOL) Sees Large Growth in Short Interest

Duolingo, Inc. (NASDAQ:DUOL) was the target of a large growth in short interest in December. As of December 31st, there was short interest totaling 6,441,438 shares, a growth of 29.6% from the December 15th total of 4,970,210 shares. Currently, 17.1% of the shares of the stock are short sold. Based on an average daily volume of 1,204,086 shares, the days-to-cover ratio is presently 5.3 days. Based on an average daily volume of 1,204,086 shares, the days-to-cover ratio is presently 5.3 days. Currently, 17.1% of the shares of the stock are short sold.

Duolingo Trading Down 2.8%

Shares of DUOL stock traded down $4.26 during trading hours on Friday, hitting $150.16. 2,308,372 shares of the company were exchanged, compared to its average volume of 1,540,881. Duolingo has a 1 year low of $147.70 and a 1 year high of $544.93. The firm has a fifty day moving average of $181.63 and a 200 day moving average of $273.98. The firm has a market cap of $6.94 billion, a PE ratio of 19.03, a PEG ratio of 0.79 and a beta of 0.87. The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.07.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings results on Wednesday, November 5th. The company reported $5.95 earnings per share for the quarter, beating analysts’ consensus estimates of $0.72 by $5.23. The company had revenue of $271.71 million for the quarter, compared to analyst estimates of $260.14 million. Duolingo had a net margin of 40.03% and a return on equity of 14.02%. Duolingo’s revenue for the quarter was up 41.1% on a year-over-year basis. During the same quarter last year, the business earned $0.49 EPS. Analysts expect that Duolingo will post 2.03 earnings per share for the current year.

Insider Activity at Duolingo

In other news, insider Severin Hacker sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $172.74, for a total transaction of $1,727,400.00. Following the sale, the insider owned 72 shares of the company’s stock, valued at $12,437.28. The trade was a 99.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, General Counsel Stephen C. Chen sold 1,514 shares of the company’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $175.87, for a total value of $266,267.18. Following the completion of the sale, the general counsel owned 31,542 shares in the company, valued at approximately $5,547,291.54. This represents a 4.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 53,169 shares of company stock worth $11,605,151 over the last three months. 15.67% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Duolingo

Several hedge funds and other institutional investors have recently modified their holdings of DUOL. Kiker Wealth Management LLC acquired a new stake in Duolingo during the 2nd quarter worth approximately $31,000. Emerald Mutual Fund Advisers Trust purchased a new stake in shares of Duolingo during the second quarter valued at approximately $40,000. Atlantic Union Bankshares Corp acquired a new stake in shares of Duolingo during the third quarter valued at about $32,000. Farther Finance Advisors LLC raised its position in shares of Duolingo by 82.2% in the 3rd quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock valued at $43,000 after purchasing an additional 60 shares in the last quarter. Finally, KERR FINANCIAL PLANNING Corp acquired a new stake in shares of Duolingo during the third quarter worth approximately $47,000. 91.59% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Jefferies Financial Group lifted their target price on shares of Duolingo from $210.00 to $220.00 and gave the stock a “hold” rating in a research report on Thursday, December 11th. Evercore ISI set a $330.00 price objective on Duolingo and gave the company an “outperform” rating in a research report on Thursday, November 6th. Scotiabank dropped their price objective on Duolingo from $600.00 to $300.00 and set a “sector outperform” rating for the company in a research report on Thursday, November 6th. UBS Group set a $245.00 target price on shares of Duolingo in a research note on Monday, January 5th. Finally, Needham & Company LLC lowered their price target on shares of Duolingo from $460.00 to $300.00 and set a “buy” rating for the company in a report on Thursday, November 6th. Twelve equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $308.50.

About Duolingo

Duolingo, Inc (NASDAQ:DUOL) is a technology-driven education company that operates a widely used language-learning platform. Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo offers a freemium service featuring bite-sized lessons, gamified exercises and adaptive learning algorithms. The company’s core product is its mobile and web application, which supports instruction in more than 40 languages, ranging from widely spoken tongues such as English and Spanish to lesser-taught options including Irish and Swahili.

In addition to its flagship language courses, Duolingo has expanded its product suite to include the Duolingo English Test, an on-demand, computer-based English proficiency exam designed for academic and professional admissions.