Duolingo (NASDAQ:DUOL) Trading Up 3.7% – Still a Buy?

Duolingo, Inc. (NASDAQ:DUOL) shot up 3.7% during trading on Thursday . The stock traded as high as $141.52 and last traded at $144.3390. 78,034 shares changed hands during mid-day trading, a decline of 96% from the average daily volume of 1,926,415 shares. The stock had previously closed at $139.24.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo joined Samsung in a widely shared social-media joke targeting Apple’s newly launched foldable iPhone Duo. The campaign, centered on Duolingo’s Duo owl and Apple’s use of the “Duo” name, gives the language-learning company free publicity and reinforces its distinctive brand voice. Mashable article Latestly article
• Positive Sentiment: The viral exchange was covered by multiple technology and entertainment outlets, potentially increasing consumer awareness and engagement at limited direct marketing cost. The immediate benefit is primarily brand reach; investors should not treat the publicity as evidence of incremental revenue yet. CNET article NewsBytes article
• Positive Sentiment: Duolingo’s “Can’t pronounce Hermès?” campaign introduced a phonetic fashion collection and a New York Fashion Week pop-up. The initiative broadens the brand beyond its app and may support engagement, merchandising, and cultural relevance, although financial impact remains uncertain. Marketing-Interactive article
• Neutral Sentiment: Duolingo presented at Citi’s 2026 Global TMT Conference. The supplied report is a transcript, but no specific new financial targets, product announcements, or guidance changes are identified in the headline information. Seeking Alpha transcript
• Negative Sentiment: A separate viral account claims a CEO learned Spanish faster using ChatGPT than Duolingo. While anecdotal and not a measured product comparison, the story highlights growing generative-AI competition and could raise concerns about user retention and the durability of Duolingo’s language-learning advantage. MSN article

Analyst Ratings Changes

Several brokerages have recently issued reports on DUOL. Citigroup upgraded shares of Duolingo from a “hold” rating to a “buy” rating in a research note on Tuesday, August 18th. Craig Hallum cut shares of Duolingo to a “hold” rating in a research note on Tuesday, August 18th. Scotiabank set a $120.00 price objective on Duolingo in a research report on Thursday, August 6th. Susquehanna started coverage on shares of Duolingo in a research report on Tuesday, August 18th. They set a “positive” rating on the stock. Finally, Needham & Company LLC reiterated a “buy” rating and set a $145.00 price objective on shares of Duolingo in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $124.38.

Duolingo Trading Up 3.8%

The company has a market cap of $6.76 billion, a P/E ratio of 17.12, a P/E/G ratio of 1.20 and a beta of 0.89. The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.06. The business has a 50-day moving average price of $137.02 and a two-hundred day moving average price of $117.61.

Duolingo (NASDAQ:DUOL) last released its earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.60 by $0.06. The company had revenue of $298.45 million for the quarter, compared to the consensus estimate of $295.58 million. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The company’s revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.91 EPS. On average, analysts predict that Duolingo, Inc. will post 2.62 EPS for the current year.

Insider Buying and Selling at Duolingo

In other Duolingo news, insider Natalie Glance sold 2,751 shares of Duolingo stock in a transaction on Monday, August 17th. The shares were sold at an average price of $129.13, for a total transaction of $355,236.63. Following the completion of the sale, the insider owned 170,650 shares of the company’s stock, valued at approximately $22,036,034.50. The trade was a 1.59% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Meese sold 1,354 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $129.13, for a total transaction of $174,842.02. Following the sale, the insider owned 169,391 shares of the company’s stock, valued at $21,873,459.83. The trade was a 0.79% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 6,668 shares of company stock valued at $874,382. 16.62% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Duolingo

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Meiji Yasuda Asset Management Co Ltd. lifted its stake in Duolingo by 3.5% in the second quarter. Meiji Yasuda Asset Management Co Ltd. now owns 940 shares of the company’s stock valued at $385,000 after buying an additional 32 shares during the period. Evergreen Capital Management LLC grew its position in shares of Duolingo by 5.0% during the 2nd quarter. Evergreen Capital Management LLC now owns 818 shares of the company’s stock worth $335,000 after buying an additional 39 shares during the period. Public Employees Retirement System of Ohio increased its stake in shares of Duolingo by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 11,740 shares of the company’s stock valued at $3,778,000 after acquiring an additional 73 shares during the last quarter. Northwestern Mutual Investment Management Company LLC raised its position in shares of Duolingo by 1.2% in the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 8,953 shares of the company’s stock valued at $1,571,000 after acquiring an additional 105 shares during the period. Finally, Banque Cantonale Vaudoise boosted its stake in Duolingo by 51.1% during the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company’s stock worth $34,000 after acquiring an additional 115 shares during the last quarter. Institutional investors own 91.59% of the company’s stock.

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.