Duolingo (NASDAQ:DUOL) Given Neutral Rating at Bank of America

Bank of America reiterated their neutral rating on shares of Duolingo (NASDAQ:DUOL) in a research report released on Friday morning, MarketBeat Ratings reports. They currently have a $100.00 target price on the stock.

Several other equities analysts also recently commented on the company. The Goldman Sachs Group lowered their price objective on Duolingo from $425.00 to $250.00 and set a “neutral” rating on the stock in a research report on Friday, November 7th. Citizens Jmp cut Duolingo from a “market outperform” rating to a “hold” rating in a report on Thursday, November 6th. Jefferies Financial Group upped their price target on Duolingo from $210.00 to $220.00 and gave the stock a “hold” rating in a research note on Thursday, December 11th. DA Davidson reduced their price objective on shares of Duolingo from $205.00 to $170.00 and set a “neutral” rating on the stock in a research report on Tuesday, January 27th. Finally, Wells Fargo & Company lowered their target price on shares of Duolingo from $185.00 to $160.00 and set an “underweight” rating on the stock in a report on Thursday, January 8th. Five equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Duolingo has a consensus rating of “Hold” and an average target price of $220.26.

Duolingo Stock Performance

Duolingo stock traded down $16.45 during trading on Friday, reaching $101.00. The company had a trading volume of 20,096,588 shares, compared to its average volume of 2,830,754. The firm has a market capitalization of $4.67 billion, a price-to-earnings ratio of 12.80, a price-to-earnings-growth ratio of 0.63 and a beta of 0.86. 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’s 50-day simple moving average is $144.48 and its 200 day simple moving average is $224.53. Duolingo has a 52 week low of $91.99 and a 52 week high of $544.93.

Duolingo (NASDAQ:DUOL) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.12. Duolingo had a net margin of 40.03% and a return on equity of 14.02%. The business had revenue of $282.87 million for the quarter, compared to the consensus estimate of $275.95 million. The business’s quarterly revenue was up 35.0% compared to the same quarter last year. Sell-side analysts forecast that Duolingo will post 2.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Duolingo

In other Duolingo news, CFO Matthew Skaruppa sold 3,986 shares of Duolingo stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $113.52, for a total value of $452,490.72. Following the completion of the transaction, the chief financial officer directly owned 31,631 shares of the company’s stock, valued at $3,590,751.12. This trade represents a 11.19% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Natalie Glance sold 3,545 shares of the business’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $113.51, for a total transaction of $402,392.95. Following the completion of the sale, the insider owned 115,380 shares in the company, valued at approximately $13,096,783.80. This trade represents a 2.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 14,939 shares of company stock worth $1,676,291. Company insiders own 15.67% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Citigroup Inc. lifted its position in Duolingo by 31.8% during the third quarter. Citigroup Inc. now owns 259,666 shares of the company’s stock valued at $83,571,000 after acquiring an additional 62,614 shares during the last quarter. Bryce Point Capital LLC purchased a new position in Duolingo in the second quarter worth $946,000. Vanguard Group Inc. increased its position in shares of Duolingo by 3.3% during the second quarter. Vanguard Group Inc. now owns 3,647,951 shares of the company’s stock worth $1,495,733,000 after purchasing an additional 116,135 shares in the last quarter. Intech Investment Management LLC lifted its holdings in shares of Duolingo by 967.3% during the 3rd quarter. Intech Investment Management LLC now owns 48,926 shares of the company’s stock valued at $15,746,000 after purchasing an additional 44,342 shares during the last quarter. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of Duolingo in the 2nd quarter worth $14,377,000. 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: Q4 results beat estimates — revenue and EPS topped expectations and the company reported strong margin metrics. Earnings Report
• Positive Sentiment: User scale: Duolingo closed 2025 with >50M daily active users and topped $1B in bookings — evidence of continued product adoption. Shareholder Letter
• Positive Sentiment: Strong full-year profitability: reports note roughly $400M profit for 2025, underlining unit economics at scale. Profit Article
• Neutral Sentiment: Management is explicitly shifting to prioritize user growth over near-term monetization, saying bookings and revenue growth will slow as they aim for 100M DAUs by 2028. Reuters Strategy Piece
• Neutral Sentiment: Management set explicit DAU growth targets and framed short-term profitability trade-offs as part of a longer-term expansion plan. Seeking Alpha
• Negative Sentiment: Guidance disappointment: FY‑2026 and Q1 2026 revenue/bookings guidance came in below Street expectations, triggering sharp intraday selling. Guidance/Miss Report
• Negative Sentiment: Analyst downgrades and price-target cuts accelerated the sell-off (multiple firms cut targets and/or ratings after the call). Analyst Moves
• Negative Sentiment: Regulatory/litigation risk: investor law firms have launched probes into DUOL, increasing uncertainty and potential legal overhang. Investigation Alert
• Negative Sentiment: High-volume selling and negative press amplified moves — multiple outlets flagged a steep intraday decline and described investor concern over the strategy shift. Barron’s

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.