Duolingo (NASDAQ:DUOL) Shares Gap Down – Time to Sell?

Shares of Duolingo, Inc. (NASDAQ:DUOL) gapped down before the market opened on Friday . The stock had previously closed at $375.78, but opened at $325.06. Duolingo shares last traded at $306.25, with a volume of 608,057 shares.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. JMP Securities reissued a “market perform” rating on shares of Duolingo in a research note on Friday, February 14th. Bank of America cut Duolingo from a “buy” rating to a “neutral” rating and boosted their target price for the company from $355.00 to $375.00 in a research note on Wednesday, December 11th. UBS Group raised their price target on shares of Duolingo from $408.00 to $410.00 and gave the stock a “buy” rating in a research note on Monday, January 27th. The Goldman Sachs Group increased their target price on shares of Duolingo from $250.00 to $275.00 and gave the stock a “neutral” rating in a report on Thursday, November 7th. Finally, Scotiabank started coverage on shares of Duolingo in a research note on Thursday, December 5th. They issued a “sector outperform” rating and a $425.00 price target on the stock. Seven research analysts have rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $369.09.

Duolingo Stock Performance

The company has a debt-to-equity ratio of 0.07, a current ratio of 3.09 and a quick ratio of 3.09. The stock has a 50-day moving average price of $360.31 and a 200-day moving average price of $309.24. The company has a market capitalization of $13.73 billion, a price-to-earnings ratio of 170.53 and a beta of 0.89.

Insiders Place Their Bets

In other Duolingo news, insider Natalie Glance sold 2,667 shares of the firm’s 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. This trade represents a 2.02 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Severin Hacker sold 188,901 shares of the company’s stock in a transaction that occurred on Wednesday, December 11th. The shares were sold at an average price of $339.54, for a total value of $64,139,445.54. Following the completion of the transaction, the insider now directly owns 72 shares in the company, valued at $24,446.88. The trade was a 99.96 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 305,639 shares of company stock valued at $105,445,057 over the last ninety days. 18.30% of the stock is currently owned by company insiders.

Institutional Trading of Duolingo

Institutional investors have recently added to or reduced their stakes in the company. True Wealth Design LLC acquired a new stake in shares of Duolingo during the third quarter worth $26,000. First Horizon Advisors Inc. acquired a new stake in Duolingo in the 3rd quarter worth about $29,000. Quarry LP boosted its holdings in Duolingo by 250.0% in the 4th quarter. Quarry LP now owns 91 shares of the company’s stock valued at $30,000 after purchasing an additional 65 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Duolingo during the 4th quarter worth approximately $31,000. Finally, Harvest Fund Management Co. Ltd increased its holdings in shares of Duolingo by 5,050.0% during the fourth quarter. Harvest Fund Management Co. Ltd now owns 103 shares of the company’s stock worth $33,000 after purchasing an additional 101 shares during the period. 91.59% of the stock is currently owned by institutional investors.

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.