Bank of America Upgrades Duolingo (NASDAQ:DUOL) to “Buy”

Duolingo (NASDAQ:DUOL) was upgraded by research analysts at Bank of America from a “neutral” rating to a “buy” rating in a report released on Monday, Marketbeat.com reports. The firm currently has a $250.00 price objective on the stock, down from their previous price objective of $301.00. Bank of America‘s target price would suggest a potential upside of 39.71% from the stock’s previous close.

Several other research analysts also recently commented on DUOL. Weiss Ratings reiterated a “hold (c)” rating on shares of Duolingo in a report on Monday, December 29th. DA Davidson reduced their price target on Duolingo from $220.00 to $205.00 and set a “neutral” rating on the stock in a research report on Wednesday, December 3rd. The Goldman Sachs Group lowered their price objective on Duolingo from $425.00 to $250.00 and set a “neutral” rating for the company in a research report on Friday, November 7th. Wells Fargo & Company dropped their price objective on Duolingo from $239.00 to $185.00 and set an “underweight” rating for the company in a research note on Thursday, November 6th. Finally, Jefferies Financial Group raised their target price on shares of Duolingo from $210.00 to $220.00 and gave the stock a “hold” rating in a report on Thursday, December 11th. Twelve equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $311.00.

Duolingo Stock Down 3.4%

Shares of DUOL opened at $178.94 on Monday. The firm has a market cap of $8.27 billion, a P/E ratio of 22.68, a P/E/G ratio of 0.95 and a beta of 0.87. The stock has a 50 day simple moving average of $195.09 and a two-hundred day simple moving average of $287.02. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.82 and a quick ratio of 2.82. Duolingo has a 1 year low of $166.27 and a 1 year high of $544.93.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $5.95 EPS for the quarter, topping the consensus estimate of $0.72 by $5.23. Duolingo had a net margin of 40.03% and a return on equity of 14.02%. The firm had revenue of $271.71 million for the quarter, compared to the consensus estimate of $260.14 million. During the same period last year, the firm posted $0.49 earnings per share. The business’s revenue was up 41.1% compared to the same quarter last year. On average, analysts forecast that Duolingo will post 2.03 earnings per share for the current fiscal year.

Insider Activity at Duolingo

In other news, General Counsel Stephen C. Chen sold 1,514 shares of Duolingo stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $175.87, for a total transaction of $266,267.18. Following the sale, the general counsel owned 31,542 shares of the company’s stock, valued at approximately $5,547,291.54. The trade was a 4.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Matthew Skaruppa sold 3,059 shares of the business’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $175.76, for a total transaction of $537,649.84. Following the transaction, the chief financial officer owned 37,487 shares in the company, valued at $6,588,715.12. This represents a 7.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 53,169 shares of company stock valued at $11,605,151 in the last 90 days. 18.30% of the stock is owned by company insiders.

Institutional Trading of Duolingo

Several large investors have recently bought and sold shares of the company. Kiker Wealth Management LLC purchased a new position in shares of Duolingo during the 2nd quarter worth approximately $31,000. Atlantic Union Bankshares Corp purchased a new stake in Duolingo in the third quarter worth $32,000. Emerald Mutual Fund Advisers Trust purchased a new stake in Duolingo in the second quarter worth $40,000. State of Wyoming bought a new position in Duolingo in the first quarter worth $42,000. Finally, Farther Finance Advisors LLC lifted its position in Duolingo by 82.2% during the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock valued at $43,000 after buying an additional 60 shares during the period. 91.59% of the stock is owned by institutional investors.

Duolingo News Summary

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Bank of America upgraded Duolingo to Buy, arguing the app should be viewed as an entertainment/gaming platform as well as an education product — a reframe that underpins a $250 price target and helped lift the shares earlier in the week. Duolingo is more game than classroom, Bank of America says in Buy upgrade
• Positive Sentiment: Truist initiated coverage with a Buy and a $245 target, adding a second major broker bullish on DUOL and reinforcing the narrative that AI and product engagement can drive long-term monetization. Truist coverage note
• Positive Sentiment: Media coverage highlights Duolingo’s push into AI-powered learning as a structural growth driver — analysts citing AI see meaningful product differentiation and monetization levers. AI Is ‘Transformative’ for Economy. Duolingo and 5 Other Stocks to Play the Shift.
• Positive Sentiment: Duolingo’s English proficiency test gained additional institutional acceptance as New Zealand universities now accept it for admissions — a tangible expansion of addressable market and validation for test monetization. NZ universities accepting English proficiency tests through Duolingo
• Neutral Sentiment: Technically, the stock formed an island reversal and jumped earlier in the week as investors reacted to bullish research notes; that move may have set up short-term profit-taking. Duolingo stock forms island reversal as key analyst changes tune
• Negative Sentiment: Despite the analyst upgrades and positive headlines, the stock is trading lower today — coverage notes point to market-wide strength that Duolingo failed to follow and possible short-term profit-taking by traders. Duolingo, Inc. (DUOL) Stock Falls Amid Market Uptick

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.