Duolingo (NASDAQ:DUOL) Issues Quarterly Earnings Results

Duolingo (NASDAQ:DUOL) posted its earnings results on Thursday. The company reported $0.31 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.19), Zacks reports. Duolingo had a net margin of 12.59% and a return on equity of 11.74%. The business had revenue of $209.55 million for the quarter, compared to analysts’ expectations of $205.49 million. Duolingo updated its FY 2025 guidance to EPS and its Q1 2025 guidance to EPS.

Duolingo Trading Down 17.0 %

Shares of DUOL traded down $63.71 during mid-day trading on Friday, hitting $312.07. The company had a trading volume of 3,454,218 shares, compared to its average volume of 761,692. The business’s 50-day simple moving average is $359.71 and its 200-day simple moving average is $310.14. The company has a quick ratio of 3.09, a current ratio of 3.09 and a debt-to-equity ratio of 0.07. Duolingo has a 1-year low of $145.05 and a 1-year high of $441.77. The stock has a market cap of $13.73 billion, a PE ratio of 170.53 and a beta of 0.89.

Insider Buying and Selling

In other Duolingo news, CFO Matthew Skaruppa sold 3,284 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 $1,429,459.52. Following the transaction, the chief financial officer now directly owns 59,982 shares of the company’s stock, valued at $26,108,964.96. The trade was a 5.19 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Ahn Luis Von sold 41,759 shares of Duolingo stock in a transaction that occurred on 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. Over the last three months, insiders have sold 305,639 shares of company stock valued at $105,445,057. Insiders own 18.30% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have weighed in on DUOL. UBS Group raised their target price on shares of Duolingo from $408.00 to $410.00 and gave the company a “buy” rating in a report on Monday, January 27th. Piper Sandler raised their target price on shares of Duolingo from $351.00 to $390.00 and gave the company an “overweight” rating in a report on Friday. Needham & Company LLC raised their target price on shares of Duolingo from $385.00 to $400.00 and gave the company a “buy” rating in a report on Friday. DA Davidson raised their target price on shares of Duolingo from $350.00 to $400.00 and gave the company a “buy” rating in a report on Friday. Finally, Barclays raised their target price on shares of Duolingo from $295.00 to $330.00 and gave the company an “equal weight” rating in a report on Friday. Seven investment analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $369.09.

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.