The stock of Duolingo Inc (NASDAQ: DUOL) has increased by 3.77 when compared to last closing price of 383.66. Despite this, the company has experienced a 1.56% gain in its stock price over the last five trading sessions. fool.com reported 2025-02-09 that We’re only a little over a month into the new year, and some stocks are already starting to separate themselves from the pack. Today, let’s examine two growth stocks that have come quickly out of the gates in 2025: Duolingo (DUOL 1.14%) and Spotify Technology (SPOT -0.46%).
Is It Worth Investing in Duolingo Inc (NASDAQ: DUOL) Right Now?
Duolingo Inc (NASDAQ: DUOL) has a higher price-to-earnings ratio of 219.55x compared to its average ratio, The 36-month beta value for DUOL is at 0.88. Analysts have varying views on the stock, with 5 analysts rating it as a “buy,” 8 rating it as “overweight,” 8 as “hold,” and 0 as “sell.”
The public float for DUOL is 35.78M, and currently, shorts hold a 4.03% of that float. The average trading volume for DUOL on February 13, 2025 was 549.60K shares.
DUOL’s Market Performance
DUOL’s stock has seen a 1.56% increase for the week, with a 25.83% rise in the past month and a 21.79% gain in the past quarter. The volatility ratio for the week is 3.98%, and the volatility levels for the past 30 days are at 4.78% for Duolingo Inc The simple moving average for the last 20 days is 10.23% for DUOL stock, with a simple moving average of 52.56% for the last 200 days.
Analysts’ Opinion of DUOL
Many brokerage firms have already submitted their reports for DUOL stocks, with Jefferies repeating the rating for DUOL by listing it as a “Hold.” The predicted price for DUOL in the upcoming period, according to Jefferies is $370 based on the research report published on January 24, 2025 of the current year 2025.
Needham, on the other hand, stated in their research note that they expect to see DUOL reach a price target of $385, previously predicting the price at $370. The rating they have provided for DUOL stocks is “Buy” according to the report published on December 19th, 2024.
BofA Securities gave a rating of “Neutral” to DUOL, setting the target price at $375 in the report published on December 11th of the previous year.
DUOL Trading at 14.14% from the 50-Day Moving Average
After a stumble in the market that brought DUOL to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.30% of loss for the given period.
Volatility was left at 4.78%, however, over the last 30 days, the volatility rate increased by 3.98%, as shares surge +27.39% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +14.52% upper at present.
During the last 5 trading sessions, DUOL rose by +1.56%, which changed the moving average for the period of 200-days by +85.31% in comparison to the 20-day moving average, which settled at $361.15. In addition, Duolingo Inc saw 22.79% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DUOL starting from Hacker Severin, who sale 10,000 shares at the price of $391.46 back on Feb 05 ’25. After this action, Hacker Severin now owns 72 shares of Duolingo Inc, valued at $3,914,552 using the latest closing price.
Hacker Severin, the Chief Tech Officer, Co-Founder of Duolingo Inc, sale 10,000 shares at $333.95 during a trade that took place back on Jan 21 ’25, which means that Hacker Severin is holding 72 shares at $3,339,535 based on the most recent closing price.
Stock Fundamentals for DUOL
Current profitability levels for the company are sitting at:
- 0.08 for the present operating margin
- 0.73 for the gross margin
The net margin for Duolingo Inc stands at 0.13. The total capital return value is set at 0.06. Equity return is now at value 12.08, with 8.30 for asset returns.
Based on Duolingo Inc (DUOL), the company’s capital structure generated 0.06 points at debt to capital in total, while cash flow to debt ratio is standing at 4.6.
Currently, EBITDA for the company is -5.83 million with net debt to EBITDA at -13.28. When we switch over and look at the enterprise to sales, we see a ratio of 24.24. The receivables turnover for the company is 7.32for trailing twelve months and the total asset turnover is 0.57. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.09.
Conclusion
In conclusion, Duolingo Inc (DUOL) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
