Duolingo, Inc. (NASDAQ:DUOL) Short Interest Up 26.5% in February

Duolingo, Inc. (NASDAQ:DUOL) saw a significant growth in short interest during the month of February. As of February 13th, there was short interest totaling 8,729,424 shares, a growth of 26.5% from the January 29th total of 6,902,698 shares. Based on an average trading volume of 3,146,213 shares, the days-to-cover ratio is currently 2.8 days. Approximately 23.1% of the company’s shares are sold short. Approximately 23.1% of the company’s shares are sold short. Based on an average trading volume of 3,146,213 shares, the days-to-cover ratio is currently 2.8 days.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on DUOL shares. Barclays reduced their target price on shares of Duolingo from $230.00 to $110.00 and set an “equal weight” rating on the stock in a research note on Monday. Morgan Stanley reissued an “equal weight” rating and issued a $100.00 price objective (down from $245.00) on shares of Duolingo in a research report on Friday. BMO Capital Markets upgraded Duolingo to a “buy” rating in a research report on Monday, January 12th. Wells Fargo & Company reduced their price target on Duolingo from $185.00 to $160.00 and set an “underweight” rating on the stock in a report on Thursday, January 8th. Finally, Needham & Company LLC decreased their price target on Duolingo from $300.00 to $145.00 and set a “buy” rating for the company in a research note on Friday. Five analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $206.32.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q4 financials remain a strength — Duolingo reported an earnings and revenue beat last quarter with strong margins and double‑digit revenue growth, supporting a longer‑term profitability story. (Company results referenced from recent filings and earnings call)
• Neutral Sentiment: Investor attention is elevated — several media outlets and screeners highlight increased retail/institutional interest in DUOL, which can increase volatility but doesn’t resolve the analyst sentiment shift. Zacks: Duolingo Attention
• Neutral Sentiment: Short‑interest data appears to show no meaningful change (reported 0 shares / data anomaly), so today’s move is not being driven by a sudden jump in shorting. (Data note: likely reporting artifact)
• Negative Sentiment: Goldman Sachs cut its price target sharply from $250 to $105 and moved to Neutral — a headline downgrade that directly pressures sentiment. Benzinga: Goldman Sachs Cuts PT
• Negative Sentiment: Barclays lowered its target from $230 to $110 and set an Equal‑Weight rating — another major shop dialing back expectations. Benzinga: Barclays Lowers PT
• Negative Sentiment: Additional cuts and reiterations to Hold/Neutral from multiple firms (DA Davidson cut to $85; Needham trimmed PT; Truist, Bank of America, Citigroup, Morgan Stanley, JPMorgan, Evercore and Scotiabank issued hold/neutral stances), amplifying downside pressure. ABN: DA Davidson PT Cut ABN: Shares Gap Down
• Negative Sentiment: Critical analysis questioning user growth and freemium conversion trends — Seeking Alpha and other pieces warn that DAU/MAU deceleration and structural AI risks could compress growth and margins, weakening the growth story that supported higher valuations. Seeking Alpha: Avoid

Insider Buying and Selling

In related news, General Counsel Stephen C. Chen sold 1,901 shares of the stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $113.26, for a total transaction of $215,307.26. Following the sale, the general counsel owned 30,545 shares in the company, valued at approximately $3,459,526.70. This represents a 5.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Matthew Skaruppa sold 3,986 shares of the firm’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $113.52, for a total value of $452,490.72. Following the completion of the sale, the chief financial officer owned 31,631 shares of the company’s stock, valued at approximately $3,590,751.12. This represents a 11.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 14,939 shares of company stock valued at $1,676,291. 15.67% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Duolingo

Large investors have recently modified their holdings of the business. Baillie Gifford & Co. lifted its position in shares of Duolingo by 71.9% in the 4th quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company’s stock worth $853,184,000 after purchasing an additional 2,033,611 shares during the period. Vanguard Group Inc. lifted its holdings in 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 buying an additional 116,135 shares during the period. Capital World Investors lifted its holdings in Duolingo by 0.5% during the fourth quarter. Capital World Investors now owns 2,241,378 shares of the company’s stock worth $393,362,000 after buying an additional 11,140 shares during the period. Dragoneer Investment Group LLC boosted its position in Duolingo by 324.4% during the 3rd quarter. Dragoneer Investment Group LLC now owns 1,580,787 shares of the company’s stock valued at $508,760,000 after acquiring an additional 1,208,346 shares in the last quarter. Finally, State Street Corp increased its holdings in shares of Duolingo by 0.5% in the 2nd quarter. State Street Corp now owns 1,164,387 shares of the company’s stock valued at $477,422,000 after acquiring an additional 6,109 shares during the period. Institutional investors own 91.59% of the company’s stock.

Duolingo Trading Down 0.2%

DUOL opened at $100.82 on Tuesday. The company has a quick ratio of 2.82, a current ratio of 2.61 and a debt-to-equity ratio of 0.07. The stock’s fifty day moving average is $142.79 and its two-hundred day moving average is $221.49. The company has a market capitalization of $4.66 billion, a P/E ratio of 11.83, a PEG ratio of 0.54 and a beta of 0.86. Duolingo has a 52 week low of $91.99 and a 52 week high of $544.93.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings results on Thursday, February 26th. The company reported $0.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.12. The business had revenue of $282.87 million for the quarter, compared to the consensus estimate of $275.95 million. Duolingo had a return on equity of 14.88% and a net margin of 39.91%.The business’s revenue was up 35.0% compared to the same quarter last year. Analysts forecast that Duolingo will post 2.03 earnings per share for the current 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.