Duolingo (NYSE:DUOL) Posts Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Posted by Emily Schoerning on Aug 6th, 2022

Duolingo (NYSE:DUOL – Get Rating) issued its earnings results on Thursday. The company reported ($0.38) EPS for the quarter, topping the consensus estimate of ($0.50) by $0.12, Briefing.com reports. Duolingo had a negative return on equity of 16.22% and a negative net margin of 21.26%. The company had revenue of $88.39 million during the quarter, compared to analyst estimates of $85.71 million. During the same quarter last year, the firm earned ($0.01) EPS. The business’s revenue was up 50.3% on a year-over-year basis. Duolingo updated its FY 2022 guidance to EPS and its Q3 2022 guidance to EPS.

Duolingo Price Performance

Shares of NYSE DUOL traded up $4.39 during mid-day trading on Friday, reaching $103.07. The company had a trading volume of 1,466,685 shares, compared to its average volume of 542,975. The company has a current ratio of 4.72, a quick ratio of 4.72 and a debt-to-equity ratio of 0.05. The stock has a market cap of $4.04 billion and a PE ratio of -58.56. The company has a 50-day moving average price of $94.83 and a two-hundred day moving average price of $89.98. Duolingo has a 1-year low of $60.50 and a 1-year high of $204.99.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Needham & Company LLC assumed coverage on Duolingo in a research note on Thursday, July 7th. They set a “buy” rating and a $115.00 target price on the stock. Piper Sandler lifted their target price on Duolingo from $95.00 to $119.00 and gave the company an “overweight” rating in a research note on Friday, June 24th. Raymond James raised Duolingo from a “market perform” rating to an “outperform” rating and set a $98.00 price objective on the stock in a research note on Friday, May 13th. The Goldman Sachs Group boosted their price objective on Duolingo to $84.00 in a research note on Thursday, June 9th. Finally, Barclays boosted their price objective on Duolingo from $95.00 to $102.00 in a research note on Friday. Two investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $112.56.

Insider Buying and Selling

In related news, major shareholder Durable Capital Partners Lp bought 136,968 shares of the firm’s stock in a transaction that occurred on Monday, May 9th. The shares were acquired at an average cost of $75.29 per share, for a total transaction of $10,312,320.72. Following the acquisition, the insider now directly owns 3,361,913 shares of the company’s stock, valued at approximately $253,118,429.77. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In other news, General Counsel Stephen C. Chen sold 10,535 shares of Duolingo stock in a transaction on Tuesday, June 21st. The stock was sold at an average price of $102.14, for a total transaction of $1,076,044.90. Following the transaction, the general counsel now owns 28,384 shares in the company, valued at $2,899,141.76. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Durable Capital Partners Lp purchased 136,968 shares of the stock in a transaction dated Monday, May 9th. The shares were acquired at an average price of $75.29 per share, for a total transaction of $10,312,320.72. Following the acquisition, the insider now directly owns 3,361,913 shares of the company’s stock, valued at approximately $253,118,429.77. The disclosure for this purchase can be found here. Insiders have sold 139,647 shares of company stock worth $13,644,892 in the last three months. 22.12% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of DUOL. Captrust Financial Advisors grew its stake in Duolingo by 620.8% in the first quarter. Captrust Financial Advisors now owns 555 shares of the company’s stock valued at $53,000 after purchasing an additional 478 shares in the last quarter. Canada Pension Plan Investment Board purchased a new position in Duolingo in the first quarter valued at about $342,000. California State Teachers Retirement System grew its stake in Duolingo by 11.0% in the first quarter. California State Teachers Retirement System now owns 6,043 shares of the company’s stock valued at $575,000 after purchasing an additional 599 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in Duolingo in the first quarter valued at about $620,000. Finally, Hsbc Holdings PLC purchased a new position in Duolingo in the first quarter valued at about $771,000. Hedge funds and other institutional investors own 40.17% of the company’s stock.

Duolingo Company Profile

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Duolingo, Inc develops a language-learning website and mobile app in the United States and China. The company offers courses in 40 different languages, including Spanish, English, French, Japanese, German, Italian, Chinese, Portuguese, and others. It also provides a digital language proficiency assessment exam.