Truist Financial Begins Coverage on Duolingo (NASDAQ:DUOL)

Stock analysts at Truist Financial initiated coverage on shares of Duolingo (NASDAQ:DUOL) in a report issued on Tuesday. The firm set a “buy” rating and a $245.00 price target on the stock. Truist Financial’s price target suggests a potential upside of 32.33% from the company’s current price.

Other analysts also recently issued reports about the stock. DA Davidson lowered their price target on shares of Duolingo from $220.00 to $205.00 and set a “neutral” rating on the stock in a report on Wednesday, December 3rd. Barclays decreased their price objective on shares of Duolingo from $390.00 to $230.00 and set an “equal weight” rating for the company in a research report on Thursday, November 6th. The Goldman Sachs Group dropped their target price on Duolingo from $425.00 to $250.00 and set a “neutral” rating on the stock in a research report on Friday, November 7th. JPMorgan Chase & Co. reduced their price target on Duolingo from $465.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. Finally, Jefferies Financial Group increased their price target on Duolingo from $210.00 to $220.00 and gave the stock a “hold” rating in a research report on Thursday, December 11th. Twelve investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Duolingo has an average rating of “Hold” and a consensus target price of $311.25.

Duolingo Stock Performance

Shares of DUOL opened at $185.15 on Tuesday. The company has a current ratio of 2.82, a quick ratio of 2.82 and a debt-to-equity ratio of 0.07. The firm has a market cap of $8.56 billion, a PE ratio of 23.47, a P/E/G ratio of 0.90 and a beta of 0.87. Duolingo has a 12 month low of $166.27 and a 12 month high of $544.93. The stock has a fifty day moving average price of $197.39 and a 200-day moving average price of $289.08.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings data on Wednesday, November 5th. The company reported $5.95 EPS for the quarter, beating the consensus estimate of $0.72 by $5.23. The firm had revenue of $271.71 million during the quarter, compared to analyst estimates of $260.14 million. Duolingo had a net margin of 40.03% and a return on equity of 14.02%. Duolingo’s revenue was up 41.1% on a year-over-year basis. During the same period last year, the firm posted $0.49 EPS. Equities research analysts predict that Duolingo will post 2.03 earnings per share for the current fiscal year.

Insider Activity at Duolingo

In related news, General Counsel Stephen C. Chen sold 1,514 shares of the stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $175.87, for a total value of $266,267.18. Following the completion of the transaction, the general counsel directly owned 31,542 shares of the company’s stock, valued at approximately $5,547,291.54. This represents a 4.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Severin Hacker sold 10,000 shares of the firm’s stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $263.13, for a total value of $2,631,300.00. Following the completion of the transaction, the insider owned 72 shares in the company, valued at $18,945.36. The trade was a 99.29% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 53,169 shares of company stock valued at $11,605,151. 18.30% of the stock is owned by corporate insiders.

Institutional Trading of Duolingo

Large investors have recently bought and sold shares of the business. Kiker Wealth Management LLC purchased a new position in Duolingo in the 2nd quarter worth approximately $31,000. Emerald Mutual Fund Advisers Trust acquired a new stake in shares of Duolingo in the second quarter valued at approximately $40,000. Atlantic Union Bankshares Corp purchased a new position in Duolingo during the third quarter worth approximately $32,000. Farther Finance Advisors LLC boosted its stake in Duolingo by 82.2% during the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock worth $43,000 after buying an additional 60 shares during the last quarter. Finally, State of Wyoming acquired a new position in Duolingo during the first quarter worth $42,000. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Bank of America upgraded DUOL to Buy, arguing the market underestimates Duolingo’s entertainment/gaming appeal and raising focus on a larger TAM tied to mobile-game-like engagement. Duolingo is more game than classroom, Bank of America says in Buy upgrade
• Positive Sentiment: Coverage and commentary (Benzinga/MSN) highlight the same BofA thesis and call out the note as the principal reason for the intraday surge in DUOL share demand. Duolingo Stock Jumps After Bank of America Says It’s More Than A Language App
• Positive Sentiment: Technicals: commentators flagged an “island reversal” and an analyst “change of tune,” reinforcing momentum buying following the BofA note and supporting a short-term bullish technical setup. Duolingo stock forms island reversal as key analyst changes tune
• Neutral Sentiment: Cultural coverage — e.g., a Guardian review of a book about gamification — reinforces the narrative that Duolingo’s product is part of a broader gamification trend; useful for thematic investors but not a direct near-term catalyst. The Score by C Thi Nguyen review – a brilliant warning about the gamification of everyday life
• Negative Sentiment: Risk note: coverage on Duolingo’s rapid product shifts (chess surge) and broader AI-related concerns flags potential execution and regulatory/quality risks that could pressure user engagement or costs if not managed. Investors should watch these operational risks. Should Duolingo’s Chess Surge and AI Risk Concerns Require Action From Duolingo (DUOL) Investors?

Duolingo Company Profile

Duolingo, Inc (NASDAQ:DUOL) is a technology-driven education company that operates a widely used language-learning platform. Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo offers a freemium service featuring bite-sized lessons, gamified exercises and adaptive learning algorithms. The company’s core product is its mobile and web application, which supports instruction in more than 40 languages, ranging from widely spoken tongues such as English and Spanish to lesser-taught options including Irish and Swahili.

In addition to its flagship language courses, Duolingo has expanded its product suite to include the Duolingo English Test, an on-demand, computer-based English proficiency exam designed for academic and professional admissions.