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

Shares of Duolingo, Inc. (NASDAQ:DUOL) have received a consensus recommendation of “Hold” from the twenty-four research firms that are covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, fourteen have given a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is $124.3750.

DUOL has been the subject of several recent analyst reports. Scotiabank set a $120.00 target price on shares of Duolingo in a report on Thursday, August 6th. Wall Street Zen raised Duolingo from a “sell” rating to a “hold” rating in a report on Sunday, August 16th. Susquehanna initiated coverage on Duolingo in a research report on Tuesday, August 18th. They issued a “positive” rating on the stock. Jefferies Financial Group upped their price objective on Duolingo from $95.00 to $125.00 and gave the stock a “hold” rating in a research note on Tuesday, July 14th. Finally, Barclays increased their target price on Duolingo from $110.00 to $115.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th.

Duolingo Price Performance

Shares of NASDAQ:DUOL opened at $141.90 on Wednesday. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. Duolingo has a 1-year low of $87.89 and a 1-year high of $353.00. The company has a market capitalization of $6.64 billion, a P/E ratio of 16.81, a P/E/G ratio of 1.16 and a beta of 0.89. The firm’s 50 day simple moving average is $139.73 and its two-hundred day simple moving average is $119.53.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.60 by $0.06. The firm had revenue of $298.45 million during the quarter, compared to analysts’ expectations of $295.58 million. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The company’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.91 earnings per share. Research analysts expect that Duolingo will post 2.62 EPS for the current fiscal year.

Key Stories Impacting Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo launched a global crossover with Supercell’s Brawl Stars, featuring the Duo owl in a promotional boss battle. The campaign could expand brand awareness, user engagement and customer acquisition, although its direct financial impact is not yet clear. Brawl Stars’ and Duolingo’s Iconic Mascots Face Off in New Collaboration
• Neutral Sentiment: Analysts compared Duolingo with Ingram Micro and Coursera on valuation and investment appeal. These reports keep attention on whether Duolingo’s growth prospects justify its price relative to other technology and online-learning companies, but do not provide a decisive new catalyst. INGM or DUOL: Which Is the Better Value Stock Right Now? Analyzing Duolingo and Coursera
• Neutral Sentiment: Coverage of Duolingo’s AI upgrade and Super subscription changes suggests the initiatives could improve product capabilities and monetization. However, investors remain focused on execution, user adoption and whether the changes translate into sustained earnings growth. Duolingo’s AI Upgrade and Insider Sale
• Negative Sentiment: Several reports characterized DUOL as appearing expensive as AI-related product changes reshape the investment outlook. Valuation concerns can pressure the stock when investors demand clearer evidence that new offerings will accelerate growth. Duolingo Stock Seems Pricey as AI Product Changes Draw Focus
• Negative Sentiment: Director Stephen Chen sold 8,072 Duolingo shares. While an insider sale does not necessarily indicate deteriorating fundamentals, it adds near-term selling pressure and can reinforce investor concerns when the stock is already facing valuation scrutiny. Stephen Chen Sells 8,072 Shares of Duolingo Stock

Insiders Place Their Bets

In other Duolingo news, insider Robert Meese sold 1,354 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $129.13, for a total value of $174,842.02. Following the completion of the transaction, the insider directly owned 169,391 shares in the company, valued at $21,873,459.83. This represents a 0.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Luis van Ahn sold 28,292 shares of Duolingo stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $150.22, for a total transaction of $4,250,024.24. Following the sale, the chief executive officer owned 23,040 shares in the company, valued at approximately $3,461,068.80. The trade was a 55.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 53,032 shares of company stock worth $7,786,498 over the last ninety days. 16.62% of the stock is owned by company insiders.

Institutional Trading of Duolingo

Hedge funds have recently bought and sold shares of the stock. Sequoia Financial Advisors LLC bought a new position in shares of Duolingo during the 2nd quarter valued at about $379,000. Integrated Wealth Concepts LLC bought a new stake in shares of Duolingo in the second quarter worth about $328,000. IFP Advisors Inc increased its holdings in shares of Duolingo by 92.9% in the second quarter. IFP Advisors Inc now owns 1,491 shares of the company’s stock worth $171,000 after purchasing an additional 718 shares during the last quarter. Baird Financial Group Inc. lifted its position in shares of Duolingo by 881.9% in the second quarter. Baird Financial Group Inc. now owns 69,331 shares of the company’s stock worth $7,975,000 after buying an additional 62,270 shares in the last quarter. Finally, Allworth Financial LP lifted its position in shares of Duolingo by 268.9% in the second quarter. Allworth Financial LP now owns 1,907 shares of the company’s stock worth $219,000 after buying an additional 1,390 shares in the last quarter. Hedge funds and other institutional investors own 91.59% of the company’s stock.

About Duolingo

Duolingo, Inc develops digital learning products designed to make education accessible through mobile devices and the web. Its primary product is the Duolingo language-learning platform, which offers courses in numerous languages through interactive, game-like lessons, practice exercises and personalized learning features.

The company also provides the Duolingo English Test, an online English-proficiency assessment used by educational institutions and other organizations. In addition, Duolingo has expanded beyond language learning with products such as Duolingo Math and Duolingo Music, while offering premium subscription features through plans including Super Duolingo and Duolingo Max.

Duolingo serves users internationally, with its applications and online services available across a broad range of geographies.