Primecap Management Co. CA Increases Stock Position in Duolingo, Inc. (NASDAQ:DUOL)

Primecap Management Co. CA grew its stake in Duolingo, Inc. (NASDAQ:DUOL) by 42.7% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,350 shares of the company’s stock after buying an additional 1,600 shares during the period. Primecap Management Co. CA’s holdings in Duolingo were worth $1,116,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Dimensional Fund Advisors LP grew its position in Duolingo by 44.2% in the second quarter. Dimensional Fund Advisors LP now owns 88,410 shares of the company’s stock worth $18,448,000 after acquiring an additional 27,090 shares in the last quarter. WINTON GROUP Ltd bought a new position in shares of Duolingo during the 2nd quarter valued at about $1,048,000. Federated Hermes Inc. increased its position in shares of Duolingo by 1.5% during the 2nd quarter. Federated Hermes Inc. now owns 274,434 shares of the company’s stock valued at $57,266,000 after purchasing an additional 4,139 shares during the last quarter. American Century Companies Inc. raised its holdings in shares of Duolingo by 25.1% during the 2nd quarter. American Century Companies Inc. now owns 498,957 shares of the company’s stock valued at $104,117,000 after buying an additional 100,167 shares in the last quarter. Finally, Headlands Technologies LLC lifted its position in Duolingo by 350.7% in the 2nd quarter. Headlands Technologies LLC now owns 3,457 shares of the company’s stock worth $721,000 after buying an additional 2,690 shares during the last quarter. Institutional investors own 91.59% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have commented on DUOL. JPMorgan Chase & Co. decreased their price target on shares of Duolingo from $275.00 to $255.00 and set an “overweight” rating on the stock in a research note on Thursday, August 8th. DA Davidson reissued a “buy” rating and issued a $250.00 price target on shares of Duolingo in a research note on Tuesday, September 10th. Piper Sandler reaffirmed an “overweight” rating and set a $271.00 price objective on shares of Duolingo in a research note on Friday, August 30th. Bank of America raised Duolingo from a “neutral” rating to a “buy” rating and set a $245.00 target price for the company in a research note on Friday, July 26th. Finally, Needham & Company LLC decreased their target price on shares of Duolingo from $267.00 to $245.00 and set a “buy” rating on the stock in a research note on Thursday, August 8th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating, eight have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $237.40.

Insiders Place Their Bets

In other news, CEO Ahn Luis Von sold 1,000 shares of the firm’s stock in a transaction that occurred on Friday, June 28th. The stock was sold at an average price of $215.00, for a total value of $215,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other Duolingo news, General Counsel Stephen C. Chen sold 19,464 shares of the firm’s stock in a transaction that occurred on Friday, August 30th. The shares were sold at an average price of $211.55, for a total transaction of $4,117,609.20. Following the completion of the transaction, the general counsel now owns 35,558 shares of the company’s stock, valued at $7,522,294.90. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Ahn Luis Von sold 1,000 shares of Duolingo stock in a transaction that occurred on Friday, June 28th. The shares were sold at an average price of $215.00, for a total transaction of $215,000.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 92,555 shares of company stock worth $18,302,871. Company insiders own 18.30% of the company’s stock.

Duolingo Stock Performance

NASDAQ:DUOL opened at $250.23 on Thursday. The company has a quick ratio of 3.28, a current ratio of 3.28 and a debt-to-equity ratio of 0.07. The firm’s fifty day simple moving average is $195.83 and its 200 day simple moving average is $203.34. The stock has a market cap of $10.79 billion, a P/E ratio of 257.97 and a beta of 0.76. Duolingo, Inc. has a twelve month low of $140.16 and a twelve month high of $258.00.

Duolingo (NASDAQ:DUOL) last announced its earnings results on Wednesday, August 7th. The company reported $0.51 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $0.19. Duolingo had a net margin of 10.44% and a return on equity of 9.64%. The firm had revenue of $178.30 million for the quarter, compared to analyst estimates of $177.13 million. During the same quarter in the previous year, the firm posted $0.08 EPS. The company’s revenue for the quarter was up 40.6% compared to the same quarter last year. As a group, research analysts predict that Duolingo, Inc. will post 1.87 EPS for the current year.

Duolingo 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.