Duolingo (NASDAQ:DUOL) Hits New 1-Year Low – Here’s What Happened

Shares of Duolingo, Inc. (NASDAQ:DUOL) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $179.57 and last traded at $178.0330, with a volume of 34110 shares changing hands. The stock had previously closed at $185.07.

Analysts Set New Price Targets

Several equities research analysts recently commented on DUOL shares. Zacks Research cut Duolingo from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. Needham & Company LLC cut their target price on Duolingo from $460.00 to $300.00 and set a “buy” rating for the company in a research note on Thursday, November 6th. Raymond James Financial reiterated a “market perform” rating on shares of Duolingo in a report on Tuesday, August 26th. Wells Fargo & Company lowered their price target on shares of Duolingo from $239.00 to $185.00 and set an “underweight” rating on the stock in a research report on Thursday, November 6th. Finally, KeyCorp cut shares of Duolingo from an “overweight” rating to a “sector weight” rating in a research report on Thursday, November 6th. Ten research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $340.53.

Duolingo Price Performance

The stock has a 50-day simple moving average of $288.39 and a 200 day simple moving average of $370.15. The company has a market cap of $8.17 billion, a PE ratio of 22.42, a P/E/G ratio of 1.17 and a beta of 0.83. The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.07.

Duolingo (NASDAQ:DUOL) last released its quarterly earnings results on Wednesday, November 5th. The company reported $5.95 earnings per share for the quarter, topping analysts’ consensus estimates of $0.72 by $5.23. The business had revenue of $271.71 million during the quarter, compared to analysts’ expectations of $260.14 million. Duolingo had a return on equity of 14.02% and a net margin of 40.03%.The company’s revenue was up 41.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.49 EPS. Duolingo has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS. Equities analysts expect that Duolingo, Inc. will post 2.03 EPS for the current year.

Insider Activity at Duolingo

In other news, insider Severin Hacker sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $263.13, for a total value of $2,631,300.00. Following the sale, the insider directly owned 72 shares of the company’s stock, valued at approximately $18,945.36. The trade was a 99.29% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Matthew Skaruppa sold 10,937 shares of the company’s stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $317.39, for a total transaction of $3,471,294.43. Following the completion of the transaction, the chief financial officer owned 43,345 shares in the company, valued at approximately $13,757,269.55. This represents a 20.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 75,735 shares of company stock valued at $22,998,736 in the last ninety days. Insiders own 15.67% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Rise Advisors LLC grew its stake in shares of Duolingo by 43.6% in the first quarter. Rise Advisors LLC now owns 79 shares of the company’s stock valued at $25,000 after buying an additional 24 shares in the last quarter. Summit Securities Group LLC purchased a new position in Duolingo during the 1st quarter valued at about $28,000. Brooklyn Investment Group boosted its holdings in Duolingo by 4,750.0% during the 1st quarter. Brooklyn Investment Group now owns 97 shares of the company’s stock valued at $30,000 after acquiring an additional 95 shares during the period. Kiker Wealth Management LLC acquired a new position in Duolingo in the 2nd quarter valued at about $31,000. Finally, Atlantic Union Bankshares Corp purchased a new stake in Duolingo during the third quarter worth about $32,000. 91.59% of the stock is currently owned by institutional investors and hedge funds.

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.