This trade activity should not be overlooked: Duolingo Inc. (DUOL)

Duolingo Inc. (NASDAQ: DUOL) stock jumped 0.96% on Friday to $159.53 against a previous-day closing price of $158.01. With 1.2 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.51 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $160.52 whereas the lowest price it dropped to was $157.48. The 52-week range on DUOL shows that it touched its highest point at $168.40 and its lowest point at $64.73 during that stretch. It currently has a 1-year price target of $159.80. Beta for the stock currently stands at 0.37.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DUOL was up-trending over the past week, with a rise of 1.93%, but this was up by 22.49% over a month. Three-month performance surged to 1.33% while six-month performance rose 25.25%. The stock gained 56.39% in the past year, while it has gained 124.28% so far this year. A look at the trailing 12-month EPS for DUOL yields -0.79 with Next year EPS estimates of 0.05. For the next quarter, that number is -0.15. This implies an EPS growth rate of 41.20% for this year and 123.80% for next year.

Float and Shares Shorts:

At present, 41.22 million DUOL shares are outstanding with a float of 34.29 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.07 million, which was 4.98% higher than short shares on Jul 30, 2023. In addition to Dr. Luis Alfonso von Ahn Arellano Ph.D. as the firm’s Co-Founder, Chairman, Pres & CEO, Mr. Matthew Skaruppa serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 87.39% of DUOL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.00% of DUOL, in contrast to 40.71% held by mutual funds. Shares owned by individuals account for 25.81%. As the largest shareholder in DUOL with 12.09% of the stake, Baillie Gifford & Co. holds 4,275,077 shares worth 4,275,077. A second-largest stockholder of DUOL, Durable Capital Partners LP, holds 3,947,614 shares, controlling over 11.16% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in DUOL, holding 2,988,902 shares or 8.45% stake. With a 4.10% stake in DUOL, the Vanguard US Growth Fund is the largest stakeholder. A total of 1,448,472 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.92% of DUOL stock, is the second-largest Mutual Fund holder. It holds 1,032,767 shares valued at 151.98 million. Vanguard Small Cap Index Fund holds 2.43% of the stake in DUOL, owning 859,247 shares worth 126.45 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, DUOL reported revenue of $88.39M and operating income of -$15.03M. The EBITDA in the recently reported quarter was -$13.86M and diluted EPS was -$0.38.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DUOL since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DUOL analysts setting a high price target of $180.00 and a low target of $140.00, the average target price over the next 12 months is $159.80. Based on these targets, DUOL could surge 12.83% to reach the target high and fall by -12.24% to reach the target low. Reaching the average price target will result in a growth of 0.17% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded DUOL stock several times over the past three months with 0 Buys and 11 Sells. In these transactions, 0 shares were bought while 54,365 shares were sold. The number of buy transactions has increased to 66 while that of sell transactions has risen to 133 over the past year. The total number of shares bought during that period was 1,268,560 while 514,009 shares were sold.

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