JPMorgan Chase & Co. Issues Pessimistic Forecast for Duolingo (NASDAQ:DUOL) Stock Price

Duolingo (NASDAQ:DUOL) had its price target reduced by research analysts at JPMorgan Chase & Co. from $300.00 to $200.00 in a note issued to investors on Tuesday,Benzinga reports. The firm presently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s target price would suggest a potential upside of 36.23% from the stock’s previous close.

Several other equities analysts also recently issued reports on DUOL. Wells Fargo & Company cut their price objective on Duolingo from $185.00 to $160.00 and set an “underweight” rating for the company in a research report on Thursday, January 8th. Barclays lowered their target price on Duolingo from $390.00 to $230.00 and set an “equal weight” rating for the company in a research note on Thursday, November 6th. Morgan Stanley cut their price target on Duolingo from $300.00 to $275.00 and set an “overweight” rating for the company in a report on Tuesday, January 13th. Weiss Ratings reissued a “hold (c)” rating on shares of Duolingo in a report on Monday, December 29th. Finally, BMO Capital Markets upgraded shares of Duolingo to a “buy” rating in a research report on Monday, January 12th. Twelve equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $303.50.

Duolingo Trading Down 1.2%

Shares of DUOL stock opened at $146.81 on Tuesday. The company has a market capitalization of $6.79 billion, a P/E ratio of 18.61, a P/E/G ratio of 0.78 and a beta of 0.87. Duolingo has a 12-month low of $142.10 and a 12-month high of $544.93. The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.07. The firm has a 50-day moving average price of $179.06 and a 200 day moving average price of $268.79.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $5.95 earnings per share 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 company had revenue of $271.71 million during the quarter, compared to analyst estimates of $260.14 million. During the same quarter last year, the business posted $0.49 earnings per share. The company’s revenue was up 41.1% on a year-over-year basis. Research analysts forecast that Duolingo will post 2.03 earnings per share for the current fiscal year.

Insider Transactions at Duolingo

In other Duolingo news, insider Severin Hacker sold 10,000 shares of the company’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $172.74, for a total transaction of $1,727,400.00. Following the transaction, the insider directly owned 72 shares in the company, valued at approximately $12,437.28. This represents a 99.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, General Counsel Stephen C. Chen sold 1,514 shares of the firm’s 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 completion of the transaction, the general counsel directly owned 31,542 shares in the company, valued at $5,547,291.54. This trade represents a 4.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 43,169 shares of company stock valued at $8,457,951. 15.67% of the stock is owned by company insiders.

Institutional Trading of Duolingo

A number of institutional investors have recently bought and sold shares of the business. Bryce Point Capital LLC bought a new position in Duolingo in the second quarter valued at approximately $946,000. Vanguard Group Inc. boosted its holdings in shares of Duolingo by 3.3% in the 2nd quarter. Vanguard Group Inc. now owns 3,647,951 shares of the company’s stock valued at $1,495,733,000 after buying an additional 116,135 shares during the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of Duolingo in the 2nd quarter valued at approximately $14,377,000. Rhumbline Advisers grew its stake in shares of Duolingo by 17.2% in the second quarter. Rhumbline Advisers now owns 124,376 shares of the company’s stock valued at $50,997,000 after buying an additional 18,210 shares in the last quarter. Finally, Jefferies Financial Group Inc. increased its holdings in Duolingo by 117.0% during the second quarter. Jefferies Financial Group Inc. now owns 26,367 shares of the company’s stock worth $10,811,000 after buying an additional 14,219 shares during the last quarter. Institutional investors and hedge funds own 91.59% of the company’s stock.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Large consumer marketing push — Duolingo ran a Bad Bunny / Super Bowl–inspired takeover in the NYC subway, a high-visibility campaign that could lift brand awareness and user acquisition in the near term. Read More.
• Positive Sentiment: Investor “deep value” thesis gaining attention — a Benzinga long-piece argues DUOL is being treated like a broken business despite solid fundamentals, framing the current price as a potential buying opportunity. This could attract value-seeking buyers if sentiment stabilizes. Read More.
• Positive Sentiment: Long-term fundamentals highlighted — a Seeking Alpha piece emphasizes Duolingo’s freemium + AI product roadmap, diversified monetization (subs, ads, DET) and international expansion (China momentum), arguing headwinds may be temporary. Read More.
• Neutral Sentiment: Valuation analysis is mixed — recent write-ups note conflicting signals from P/E and DCF work after recent share weakness, leaving fair-value views split among investors. Read More.
• Neutral Sentiment: Stock showing resilience despite CFO change — coverage points out shares have “held strength” around the CFO transition, suggesting execution risk is being monitored but hasn’t triggered a sell-off yet. Read More.
• Neutral Sentiment: Market-driven pullback noted — headline coverage (Zacks) flags that DUOL fell amid a broader market uptick, indicating some of the move is sentiment/market-flow rather than company-specific news. Read More.
• Negative Sentiment: Negative press/UX criticism — opinion pieces (MSN) accuse Duolingo of manipulative UX/marketing tactics, which can dent user trust or attract regulatory/PR scrutiny if amplified. Read More.

About Duolingo

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.