On October 9, 2023, Durable Capital Partners LP (Trades, Portfolio) made a significant move in the stock market by reducing its stake in Duolingo Inc. The firm sold 30,000 shares, resulting in a trade change of -0.78. This transaction had a minor impact of -0.04 on the firm's portfolio.
About Durable Capital Partners LP (Trades, Portfolio)
Durable Capital Partners LP (Trades, Portfolio), a firm based in Chevy Chase, MD, is known for its strategic investment decisions. The firm's equity stands at $11.4 billion, spread across 50 stocks. Its top holdings include FirstService Corp (FSV, Financial), Intuit Inc (INTU, Financial), HubSpot Inc (HUBS, Financial), Roper Technologies Inc (ROP, Financial), and Duolingo Inc (DUOL, Financial). The firm's investments are primarily concentrated in the Technology and Healthcare sectors.
Details of the Trade
The shares were traded at a price of $169.39 each. Following the transaction, Durable Capital Partners LP (Trades, Portfolio) now holds 3,804,323 shares of Duolingo Inc, representing 5.66% of the firm's portfolio and 9.16% of the total shares of Duolingo Inc.
Overview of Duolingo Inc
Duolingo Inc, a technology company based in the USA, made its Initial Public Offering (IPO) on July 28, 2021. The company develops a mobile learning platform for language learning and is the top-grossing app in the Education category on both Google Play and the Apple App Store. Its products, powered by sophisticated data analytics and artificial intelligence, are designed to make learning easier and more engaging. The company's market cap stands at $7.2 billion, with a current stock price of $173.
Analysis of Duolingo Inc's Stock
Since its IPO, Duolingo Inc's stock has gained 22.35%, with a year-to-date increase of 143.9%. However, the company's GF Valuation is currently not available due to insufficient data. The stock's gain percent since the transaction is 2.13%.
Evaluation of Duolingo Inc's Performance
Duolingo Inc's performance is evaluated using various metrics. The company's GF Score is 24/100, indicating poor future performance potential. Its balance sheet rank is 8/10, while its profitability rank is 2/10. The company's growth rank is 0/10, indicating no growth in the recent past. The Piotroski F-Score is 5, and the Altman Z score is 19.05, suggesting financial stability.
Analysis of Duolingo Inc's Financial Health
Duolingo Inc's financial health is evaluated using various metrics. The company's Return on Equity (ROE) is -5.65, and its Return on Assets (ROA) is -4.12. The company's gross margin growth and operating margin growth are both 0.00. Over the past three years, the company's revenue growth is 61.40%, while its EBITDA growth is -61.00, and its earning growth is -52.50.
Assessment of Duolingo Inc's Stock Momentum
Duolingo Inc's stock momentum is evaluated using various metrics. The stock's RSI 5 Day is 48.18, RSI 9 Day is 52.52, and RSI 14 Day is 54.39. The stock's momentum index 6 - 1 Month is 16.19, and its momentum index 12 - 1 Month is 59.22.
In conclusion, Durable Capital Partners LP (Trades, Portfolio)'s decision to reduce its stake in Duolingo Inc will likely have a minimal impact on its portfolio due to the small trade change. However, the transaction could influence Duolingo Inc's stock, given the firm's significant holdings in the company.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
