Steadview Capital Management LLC Reduces Holdings in Duolingo, Inc. $DUOL

Steadview Capital Management LLC lowered its holdings in Duolingo, Inc. (NASDAQ:DUOL) by 24.7% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 82,155 shares of the company’s stock after selling 26,915 shares during the period. Duolingo comprises 3.8% of Steadview Capital Management LLC’s holdings, making the stock its 8th largest position. Steadview Capital Management LLC’s holdings in Duolingo were worth $26,441,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in DUOL. Bryce Point Capital LLC purchased a new position in Duolingo in the second quarter valued at about $946,000. Vanguard Group Inc. increased its stake in shares of Duolingo by 3.3% during the 2nd quarter. Vanguard Group Inc. now owns 3,647,951 shares of the company’s stock worth $1,495,733,000 after purchasing an additional 116,135 shares during the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of Duolingo in the 2nd quarter worth approximately $14,377,000. Rhumbline Advisers lifted its stake in Duolingo by 17.2% in the second quarter. Rhumbline Advisers now owns 124,376 shares of the company’s stock valued at $50,997,000 after purchasing an additional 18,210 shares during the last quarter. Finally, Jefferies Financial Group Inc. grew its holdings in Duolingo by 117.0% during the second quarter. Jefferies Financial Group Inc. now owns 26,367 shares of the company’s stock valued at $10,811,000 after purchasing an additional 14,219 shares during the period. 91.59% of the stock is owned by hedge funds and other institutional investors.

Duolingo Price Performance

Shares of NASDAQ:DUOL opened at $153.70 on Friday. The company has a 50 day moving average of $178.40 and a 200 day moving average of $267.99. The company has a current ratio of 2.82, a quick ratio of 2.82 and a debt-to-equity ratio of 0.07. The stock has a market cap of $7.11 billion, a P/E ratio of 19.48, a P/E/G ratio of 0.78 and a beta of 0.87. Duolingo, Inc. has a 12 month low of $142.10 and a 12 month high of $544.93.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings results on Wednesday, November 5th. The company reported $5.95 EPS for the quarter, beating the consensus estimate of $0.72 by $5.23. The firm had revenue of $271.71 million during the quarter, compared to the consensus estimate of $260.14 million. Duolingo had a net margin of 40.03% and a return on equity of 14.02%. The business’s quarterly revenue was up 41.1% compared to the same quarter last year. During the same period last year, the firm earned $0.49 EPS. As a group, sell-side analysts forecast that Duolingo, Inc. will post 2.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Matthew Skaruppa sold 3,059 shares of Duolingo stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $175.76, for a total transaction of $537,649.84. Following the completion of the sale, the chief financial officer owned 37,487 shares in the company, valued at approximately $6,588,715.12. This trade represents a 7.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Severin Hacker sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $172.74, for a total transaction of $1,727,400.00. Following the completion of the sale, the insider directly owned 72 shares in the company, valued at $12,437.28. This represents a 99.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 43,169 shares of company stock worth $8,457,951. 15.67% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on DUOL shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Duolingo in a research report on Monday, December 29th. Bank of America raised shares of Duolingo from a “neutral” rating to a “buy” rating and dropped their price objective for the company from $301.00 to $250.00 in a report on Monday, January 5th. Zacks Research lowered shares of Duolingo from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 13th. Evercore ISI set a $330.00 price objective on shares of Duolingo and gave the stock an “outperform” rating in a report on Thursday, November 6th. Finally, The Goldman Sachs Group reduced their price objective on shares of Duolingo from $425.00 to $250.00 and set a “neutral” rating for the company in a research note on Friday, November 7th. Twelve investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $303.50.

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.