Duolingo (NASDAQ:DUOL) Reaches New 1-Year High on Strong Earnings

Duolingo, Inc. (NASDAQ:DUOL)’s share price hit a new 52-week high during trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $462.83 and last traded at $449.18, with a volume of 179914 shares. The stock had previously closed at $400.00.

The company reported $0.72 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.20. Duolingo had a net margin of 12.59% and a return on equity of 11.74%. The business had revenue of $230.74 million during the quarter, compared to the consensus estimate of $223.15 million. The company’s quarterly revenue was up 37.6% on a year-over-year basis.

Analysts Set New Price Targets

Several brokerages have weighed in on DUOL. Morgan Stanley assumed coverage on Duolingo in a research note on Wednesday, April 23rd. They set an “overweight” rating and a $435.00 target price on the stock. The Goldman Sachs Group lifted their price target on Duolingo from $275.00 to $340.00 and gave the company a “neutral” rating in a research report on Monday, March 3rd. UBS Group upped their price target on shares of Duolingo from $400.00 to $500.00 and gave the company a “buy” rating in a report on Friday. Evercore ISI boosted their target price on shares of Duolingo from $400.00 to $480.00 and gave the stock an “outperform” rating in a report on Friday. Finally, JPMorgan Chase & Co. raised their target price on shares of Duolingo from $360.00 to $500.00 and gave the stock an “overweight” rating in a report on Friday. Seven investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $422.50.

Insiders Place Their Bets

In related news, insider Robert Meese sold 5,000 shares of the stock in a transaction dated Tuesday, April 29th. The shares were sold at an average price of $395.00, for a total value of $1,975,000.00. Following the completion of the sale, the insider now owns 118,805 shares in the company, valued at approximately $46,927,975. This trade represents a 4.04 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Severin Hacker sold 10,000 shares of Duolingo stock in a transaction that occurred on Wednesday, February 5th. The stock was sold at an average price of $391.46, for a total value of $3,914,600.00. Following the sale, the insider now directly owns 72 shares in the company, valued at $28,185.12. The trade was a 99.29 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 109,868 shares of company stock valued at $37,549,300 over the last 90 days. 18.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Duolingo

Hedge funds have recently modified their holdings of the stock. FMR LLC lifted its holdings in shares of Duolingo by 39.9% during the fourth quarter. FMR LLC now owns 3,726,561 shares of the company’s stock valued at $1,208,263,000 after acquiring an additional 1,063,327 shares during the period. Norges Bank acquired a new stake in Duolingo during the 4th quarter valued at $152,296,000. T. Rowe Price Investment Management Inc. raised its position in Duolingo by 548.8% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 470,834 shares of the company’s stock valued at $152,659,000 after purchasing an additional 398,259 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Duolingo by 53.5% in the fourth quarter. Invesco Ltd. now owns 1,085,066 shares of the company’s stock valued at $351,811,000 after buying an additional 378,225 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in Duolingo by 41,959.1% during the 1st quarter. GAMMA Investing LLC now owns 239,737 shares of the company’s stock worth $74,448,000 after buying an additional 239,167 shares in the last quarter. 91.59% of the stock is owned by institutional investors and hedge funds.

Duolingo Trading Up 21.6 %

The stock has a market cap of $22.01 billion, a P/E ratio of 265.80 and a beta of 0.91. The company has a current ratio of 3.09, a quick ratio of 3.09 and a debt-to-equity ratio of 0.07. The business’s fifty day simple moving average is $326.31 and its 200 day simple moving average is $336.84.

About Duolingo

Duolingo, Inc operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam.