Duolingo (NASDAQ:DUOL) Shares Gap Up Following Analyst Upgrade

Duolingo, Inc. (NASDAQ:DUOL) shares gapped up prior to trading on Tuesday after DA Davidson upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $130.16, but opened at $135.25. DA Davidson now has a $160.00 price target on the stock, up from their previous price target of $130.00. Duolingo shares last traded at $136.6310, with a volume of 228,325 shares changing hands.

A number of other equities analysts have also recently issued reports on DUOL. Barclays increased their price objective on shares of Duolingo from $110.00 to $115.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Truist Financial boosted their target price on Duolingo from $100.00 to $120.00 and gave the company a “hold” rating in a research report on Thursday, August 6th. Scotiabank set a $120.00 price target on Duolingo in a research note on Thursday, August 6th. Needham & Company LLC reiterated a “buy” rating and issued a $145.00 price target on shares of Duolingo in a report on Thursday, August 6th. Finally, KeyCorp reissued a “sector weight” rating on shares of Duolingo in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Duolingo presently has an average rating of “Hold” and an average target price of $130.50.

Hedge Funds Weigh In On Duolingo

A number of hedge funds have recently bought and sold shares of DUOL. Capital World Investors increased its stake in Duolingo by 0.5% in the 4th quarter. Capital World Investors now owns 2,241,378 shares of the company’s stock valued at $393,362,000 after buying an additional 11,140 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of Duolingo by 511.2% in the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock valued at $131,325,000 after acquiring an additional 1,114,315 shares in the last quarter. State of Michigan Retirement System increased its position in shares of Duolingo by 112.9% during the first quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company’s stock valued at $117,624,000 after acquiring an additional 632,807 shares during the last quarter. State Street Corp increased its position in shares of Duolingo by 0.5% during the second quarter. State Street Corp now owns 1,164,387 shares of the company’s stock valued at $477,422,000 after acquiring an additional 6,109 shares during the last quarter. Finally, Whale Rock Capital Management LLC increased its position in shares of Duolingo by 1.0% during the fourth quarter. Whale Rock Capital Management LLC now owns 876,646 shares of the company’s stock valued at $153,851,000 after acquiring an additional 8,477 shares during the last quarter. 91.59% of the stock is owned by hedge funds and other institutional investors.

Duolingo Stock Up 4.9%

The stock has a fifty day moving average of $128.62 and a 200 day moving average of $114.24. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. The firm has a market capitalization of $6.39 billion, a P/E ratio of 16.17, a price-to-earnings-growth ratio of 1.07 and a beta of 0.87.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.66 EPS for the quarter, topping the consensus estimate of $0.60 by $0.06. The business had revenue of $298.45 million for the quarter, compared to analyst estimates of $295.58 million. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The company’s revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.91 earnings per share. On average, research analysts anticipate that Duolingo, Inc. will post 2.67 EPS for the current fiscal year.

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.