Duolingo (NASDAQ:DUOL) Stock Price Down 3.1% - Should You Sell?

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) was down 3.1% during trading on Friday . The company traded as low as $324.83 and last traded at $324.83. Approximately 34,817 shares traded hands during mid-day trading, a decline of 95% from the average daily volume of 684,435 shares. The stock had previously closed at $335.22.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on DUOL shares. DA Davidson raised their price objective on Duolingo from $250.00 to $350.00 and gave the stock a "buy" rating in a research report on Thursday, November 7th. Bank of America lowered shares of Duolingo from a "buy" rating to a "neutral" rating and upped their price objective for the company from $355.00 to $375.00 in a research note on Wednesday, December 11th. Scotiabank initiated coverage on shares of Duolingo in a research report on Thursday, December 5th. They set a "sector outperform" rating and a $425.00 price objective for the company. The Goldman Sachs Group boosted their target price on shares of Duolingo from $250.00 to $275.00 and gave the company a "neutral" rating in a report on Thursday, November 7th. Finally, Needham & Company LLC upped their price target on shares of Duolingo from $370.00 to $385.00 and gave the company a "buy" rating in a research report on Thursday. Six investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $353.90.

Duolingo Trading Up 2.1 %

The company has a debt-to-equity ratio of 0.07, a current ratio of 3.09 and a quick ratio of 3.09. The firm has a fifty day simple moving average of $321.84 and a 200-day simple moving average of $249.57. The firm has a market cap of $15.05 billion, a P/E ratio of 186.95 and a beta of 0.85.

Duolingo (NASDAQ:DUOL - Get Free Report) last posted its quarterly earnings results on Wednesday, November 6th. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.14. Duolingo had a net margin of 12.59% and a return on equity of 11.74%. The business had revenue of $192.59 million during the quarter, compared to the consensus estimate of $189.19 million. During the same quarter last year, the firm posted $0.06 EPS. Duolingo's revenue was up 39.9% compared to the same quarter last year. On average, equities research analysts expect that Duolingo, Inc. will post 2.02 earnings per share for the current year.

Insider Activity at Duolingo

In other news, insider Robert Meese sold 5,000 shares of the company's stock in a transaction on Wednesday, September 25th. The shares were sold at an average price of $285.04, for a total value of $1,425,200.00. Following the completion of the sale, the insider now owns 142,053 shares in the company, valued at $40,490,787.12. This represents a 3.40 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Ahn Luis Von sold 41,759 shares of the firm's stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $340.29, for a total transaction of $14,210,170.11. The disclosure for this sale can be found here. In the last quarter, insiders have sold 250,160 shares of company stock valued at $84,588,416. 18.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Duolingo

Several institutional investors have recently modified their holdings of DUOL. Mount Lucas Management LP grew its position in Duolingo by 2.4% during the third quarter. Mount Lucas Management LP now owns 1,340 shares of the company's stock valued at $378,000 after buying an additional 32 shares during the period. CIBC Asset Management Inc grew its position in shares of Duolingo by 3.1% during the 3rd quarter. CIBC Asset Management Inc now owns 1,061 shares of the company's stock valued at $299,000 after acquiring an additional 32 shares during the period. Mercer Global Advisors Inc. ADV increased its stake in shares of Duolingo by 3.9% during the 2nd quarter. Mercer Global Advisors Inc. ADV now owns 1,962 shares of the company's stock worth $409,000 after purchasing an additional 73 shares during the last quarter. Farther Finance Advisors LLC increased its stake in shares of Duolingo by 164.6% during the 3rd quarter. Farther Finance Advisors LLC now owns 127 shares of the company's stock worth $36,000 after purchasing an additional 79 shares during the last quarter. Finally, Nisa Investment Advisors LLC raised its holdings in shares of Duolingo by 19.5% in the 2nd quarter. Nisa Investment Advisors LLC now owns 520 shares of the company's stock worth $109,000 after purchasing an additional 85 shares during the period. 91.59% of the stock is owned by institutional investors.

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.