Duolingo, Inc. (NASDAQ:DUOL) Sees Significant Drop in Short Interest

Duolingo, Inc. (NASDAQ:DUOL) was the recipient of a significant drop in short interest in February. As of February 28th, there was short interest totalling 1,230,000 shares, a drop of 14.6% from the February 13th total of 1,440,000 shares. Approximately 3.3% of the shares of the company are short sold. Based on an average daily volume of 761,000 shares, the short-interest ratio is currently 1.6 days.

Analyst Ratings Changes

DUOL has been the topic of a number of analyst reports. Bank of America cut shares of Duolingo from a “buy” rating to a “neutral” rating and upped their price target for the stock from $355.00 to $375.00 in a research note on Wednesday, December 11th. DA Davidson increased their price objective on shares of Duolingo from $350.00 to $400.00 and gave the stock a “buy” rating in a research note on Friday, February 28th. JMP Securities reissued a “market perform” rating on shares of Duolingo in a report on Friday, February 14th. Scotiabank assumed coverage on Duolingo in a research report on Thursday, December 5th. They set a “sector outperform” rating and a $425.00 price objective for the company. Finally, Barclays raised their price objective on Duolingo from $295.00 to $330.00 and gave the company an “equal weight” rating in a research report on Friday, February 28th. Seven analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Duolingo currently has an average rating of “Moderate Buy” and an average target price of $376.25.

Duolingo Stock Performance

NASDAQ:DUOL opened at $306.17 on Friday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.09 and a current ratio of 3.09. The stock has a market capitalization of $13.85 billion, a P/E ratio of 167.31 and a beta of 0.92. The company has a 50 day moving average price of $347.77 and a 200 day moving average price of $318.22. Duolingo has a fifty-two week low of $145.05 and a fifty-two week high of $441.77.

Duolingo (NASDAQ:DUOL) last released its earnings results on Thursday, February 27th. The company reported $0.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.19). Duolingo had a return on equity of 11.74% and a net margin of 12.59%. The business had revenue of $209.55 million for the quarter, compared to analyst estimates of $205.49 million. Equities research analysts forecast that Duolingo will post 2.03 EPS for the current year.

Insider Transactions at Duolingo

In other Duolingo news, insider Natalie Glance sold 2,667 shares of Duolingo stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $435.28, for a total transaction of $1,160,891.76. Following the completion of the sale, the insider now directly owns 129,572 shares in the company, valued at $56,400,100.16. The trade was a 2.02 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, General Counsel Stephen C. Chen sold 2,064 shares of Duolingo stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $435.12, for a total transaction of $898,087.68. Following the sale, the general counsel now owns 34,634 shares of the company’s stock, valued at approximately $15,069,946.08. The trade was a 5.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 80,499 shares of company stock worth $28,144,768 over the last quarter. Corporate insiders own 18.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. FMR LLC increased its stake in shares of Duolingo by 39.9% during the fourth quarter. FMR LLC now owns 3,726,561 shares of the company’s stock worth $1,208,263,000 after acquiring an additional 1,063,327 shares during the period. Norges Bank purchased a new stake in shares of Duolingo in the fourth quarter valued at about $152,296,000. T. Rowe Price Investment Management Inc. lifted its stake in shares of Duolingo by 548.8% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 470,834 shares of the company’s stock valued at $152,659,000 after buying an additional 398,259 shares during the period. Invesco Ltd. lifted its stake in shares of Duolingo by 53.5% during 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 period. Finally, Spyglass Capital Management LLC acquired a new position in Duolingo during the third quarter worth approximately $38,512,000. 91.59% of the stock is currently owned by institutional investors and hedge funds.

Duolingo Company Profile

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.