Duolingo (NASDAQ:DUOL) Posts Earnings Results, Beats Expectations By $0.10 EPS

Duolingo (NASDAQ:DUOL) released its quarterly earnings results on Monday. The company reported $0.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.79 by $0.10, FiscalAI reports. The business had revenue of $291.97 million for the quarter, compared to the consensus estimate of $288.60 million. Duolingo had a net margin of 39.91% and a return on equity of 14.88%.

Duolingo Stock Down 0.9%

DUOL traded down $1.02 during trading hours on Monday, hitting $110.23. 4,621,234 shares of the company’s stock were exchanged, compared to its average volume of 2,476,134. Duolingo has a 12-month low of $87.89 and a 12-month high of $544.93. The firm has a 50 day moving average of $100.45 and a 200 day moving average of $157.37. The firm has a market cap of $5.18 billion, a P/E ratio of 12.94, a price-to-earnings-growth ratio of 0.78 and a beta of 0.90. The company has a current ratio of 2.61, a quick ratio of 2.61 and a debt-to-equity ratio of 0.07.

Insider Activity

In other Duolingo news, Director James H. Shelton bought 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were purchased at an average cost of $99.76 per share, with a total value of $498,800.00. Following the purchase, the director directly owned 9,632 shares in the company, valued at approximately $960,888.32. This represents a 107.94% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Robert Meese sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $110.06, for a total transaction of $110,060.00. Following the transaction, the insider owned 122,636 shares of the company’s stock, valued at $13,497,318.16. This trade represents a 0.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 14,939 shares of company stock worth $1,676,291 over the last 90 days. Company insiders own 16.62% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. EFG International AG acquired a new position in Duolingo during the 4th quarter worth approximately $26,000. AlphaCentric Advisors LLC acquired a new position in Duolingo during the 4th quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd acquired a new position in Duolingo during the 4th quarter worth approximately $43,000. Advisors Asset Management Inc. grew its holdings in Duolingo by 152.5% during the 4th quarter. Advisors Asset Management Inc. now owns 298 shares of the company’s stock worth $52,000 after acquiring an additional 180 shares in the last quarter. Finally, Banque Cantonale Vaudoise acquired a new position in Duolingo during the 3rd quarter worth approximately $70,000. Institutional investors and hedge funds own 91.59% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. DA Davidson set a $85.00 price target on shares of Duolingo in a research note on Thursday, April 9th. Wells Fargo & Company reduced their price target on shares of Duolingo from $185.00 to $160.00 and set an “underweight” rating on the stock in a research note on Thursday, January 8th. Needham & Company LLC cut their target price on shares of Duolingo from $300.00 to $145.00 and set a “buy” rating on the stock in a research note on Friday, February 27th. Evercore reaffirmed a “hold” rating and set a $114.00 target price on shares of Duolingo in a research note on Friday, February 27th. Finally, JPMorgan Chase & Co. cut their target price on shares of Duolingo from $95.00 to $92.00 and set a “neutral” rating on the stock in a research note on Monday, April 20th. Three analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $196.78.

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.