Duolingo, Inc. (NASDAQ:DUOL) Given Average Rating of “Hold” by Analysts

Shares of Duolingo, Inc. (NASDAQ:DUOL) have received a consensus recommendation of “Hold” from the twenty-three research firms that are currently covering the company, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, sixteen have given a hold rating and five have given a buy rating to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $206.3158.

A number of brokerages have recently weighed in on DUOL. DA Davidson dropped their price target on Duolingo from $170.00 to $85.00 and set a “neutral” rating on the stock in a research report on Friday, February 27th. Truist Financial lowered Duolingo from a “buy” rating to a “hold” rating and set a $100.00 price objective for the company. in a research report on Friday, February 27th. Scotiabank reaffirmed a “sector perform” rating and issued a $100.00 target price (down from $300.00) on shares of Duolingo in a research report on Friday, February 27th. Weiss Ratings reiterated a “hold (c)” rating on shares of Duolingo in a research note on Monday, December 29th. Finally, Bank of America reissued a “neutral” rating and set a $100.00 price target on shares of Duolingo in a report on Friday, February 27th.

Insiders Place Their Bets

In other Duolingo news, insider Natalie Glance sold 3,545 shares of the company’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $113.51, for a total value of $402,392.95. Following the completion of the transaction, the insider owned 115,380 shares in the company, valued at approximately $13,096,783.80. This represents a 2.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Matthew Skaruppa sold 3,986 shares of the firm’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $113.52, for a total transaction of $452,490.72. Following the completion of the sale, the chief financial officer owned 31,631 shares in the company, valued at $3,590,751.12. The trade was a 11.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 14,939 shares of company stock worth $1,676,291. 15.67% of the stock is owned by company insiders.

Hedge Funds Weigh In On Duolingo

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd bought a new position in Duolingo in the 4th quarter worth approximately $73,000. Virtu Financial LLC bought a new stake in Duolingo during the 4th quarter valued at $4,282,000. Alpine Woods Capital Investors LLC acquired a new position in Duolingo during the 4th quarter worth $333,000. Vident Advisory LLC boosted its position in Duolingo by 5.8% during the 4th quarter. Vident Advisory LLC now owns 2,647 shares of the company’s stock worth $465,000 after acquiring an additional 145 shares during the period. Finally, Cim LLC grew its stake in shares of Duolingo by 6.0% in the fourth quarter. Cim LLC now owns 4,390 shares of the company’s stock worth $770,000 after purchasing an additional 248 shares in the last quarter. 91.59% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: AI-first growth: Zacks highlights Duolingo’s AI-driven platform, ~50M daily active users and $1B in bookings, arguing its data moat and new AI courses/subscriptions support an ambition to reach 100M DAUs — a clear growth thesis that could re-accelerate monetization and revenue. Duolingo’s AI-First Strategy & Data Secures Dominance in Ed-Tech
• Positive Sentiment: Insider buying: Director James H. Shelton purchased 5,000 shares at roughly $99.76, signaling management-level confidence and providing short-term sentiment support. James Shelton Buys 5,000 Shares of Duolingo
• Positive Sentiment: Valuation/financial reset view: A Seeking Alpha piece frames the stock’s drop as a reset — notes $1.12B cash, minimal debt and very healthy margins (~72% gross, ~40% net) — suggesting the balance sheet and profitability give runway to invest in user growth without solvency risk. Duolingo’s Reset Opportunity
• Neutral Sentiment: Options activity: Analysts flag moves in the options market that could presage larger directional bets or volatility, but options flow is not definitive about fundamentals. Is the Options Market Predicting a Spike in Duolingo Stock?
• Neutral Sentiment: Short-interest report appears inconsistent (reported as a large increase but shows zero shares), so current short-interest impact is unclear — monitor reliable short data for true positioning.
• Negative Sentiment: Regulatory/securities probes: Faruqi & Faruqi and Pomerantz have launched investigations into Duolingo relating to recent market moves — these class-action inquiries increase legal risk and can pressure sentiment and liquidity until resolved. Faruqi & Faruqi Launches Investigation into Duolingo Pomerantz Investigates Claims
• Negative Sentiment: Institutional trim: Gilder Gagnon Howe reduced its position by ~66,397 shares (~$15.7M) last quarter — a meaningful sale from an active investor that can weigh on sentiment if others follow. Gilder Gagnon Howe Dumps 66,000 Duolingo Shares
• Negative Sentiment: Competitive/customer anecdote: A Lifehacker piece recounts a user switching to Babbel for better learning outcomes — anecdotal but a reminder of competition in retention/engagement metrics that underpin long-term monetization. I Ditched Duolingo for Babbel

Duolingo Stock Performance

Shares of NASDAQ DUOL traded up $0.38 during midday trading on Friday, hitting $101.92. The company’s stock had a trading volume of 2,009,484 shares, compared to its average volume of 3,676,588. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.82 and a current ratio of 2.61. Duolingo has a 1-year low of $91.99 and a 1-year high of $544.93. The firm’s fifty day moving average price is $136.37 and its 200-day moving average price is $216.37. The firm has a market cap of $4.71 billion, a P/E ratio of 11.96, a P/E/G ratio of 0.68 and a beta of 0.90.

Duolingo (NASDAQ:DUOL) last released its quarterly earnings data on Thursday, February 26th. The company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.12. Duolingo had a net margin of 39.91% and a return on equity of 14.88%. The firm had revenue of $282.87 million for the quarter, compared to analyst estimates of $275.95 million. The company’s revenue for the quarter was up 35.0% on a year-over-year basis. On average, sell-side analysts forecast that Duolingo will post 2.03 EPS for the current fiscal year.

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.