Duolingo (NASDAQ:DUOL) Sets New 12-Month Low – Time to Sell?

Duolingo, Inc. (NASDAQ:DUOL)’s share price reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $119.61 and last traded at $120.28, with a volume of 5014090 shares trading hands. The stock had previously closed at $131.93.

Analyst Ratings Changes

A number of equities research analysts have commented on DUOL shares. KeyCorp cut shares of Duolingo from an “overweight” rating to a “sector weight” rating in a report on Thursday, November 6th. Citigroup reaffirmed a “market perform” rating on shares of Duolingo in a research report on Monday, January 12th. BMO Capital Markets raised Duolingo to a “buy” rating in a research note on Monday, January 12th. Citizens Jmp cut Duolingo from a “market outperform” rating to a “hold” rating in a research note on Thursday, November 6th. Finally, The Goldman Sachs Group decreased their price objective on Duolingo from $425.00 to $250.00 and set a “neutral” rating for the company in a report on Friday, November 7th. Twelve equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $300.25.

Duolingo Trading Up 4.4%

The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.07. The firm has a 50 day moving average price of $169.89 and a 200 day moving average price of $251.17. The stock has a market capitalization of $5.52 billion, a PE ratio of 39.56, a P/E/G ratio of 0.61 and a beta of 0.86.

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

Insider Activity

In other Duolingo news, General Counsel Stephen C. Chen sold 1,514 shares of the stock in a transaction dated Tuesday, November 18th. The shares were 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 trade represents a 4.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Matthew Skaruppa sold 3,059 shares of the business’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $175.76, for a total value of $537,649.84. Following the completion of the transaction, the chief financial officer owned 37,487 shares in the company, valued at $6,588,715.12. The trade was a 7.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 33,169 shares of company stock worth $5,826,651. Company insiders own 15.67% of the company’s stock.

Institutional Trading of Duolingo

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

Duolingo Company Profile

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.