DA Davidson Cuts Duolingo (NASDAQ:DUOL) Price Target to $85.00

Duolingo (NASDAQ:DUOL) had its target price reduced by DA Davidson from $170.00 to $85.00 in a research report sent to investors on Friday morning,Benzinga reports. They currently have a neutral rating on the stock.

Several other equities analysts also recently commented on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Duolingo in a report on Monday, December 29th. Truist Financial lowered Duolingo from a “buy” rating to a “hold” rating and set a $100.00 target price for the company. in a research report on Friday. Morgan Stanley reiterated an “equal weight” rating and issued a $100.00 price target (down from $245.00) on shares of Duolingo in a report on Friday. Bank of America restated a “neutral” rating and set a $100.00 price objective on shares of Duolingo in a report on Friday. Finally, Citigroup reiterated a “neutral” rating and issued a $101.00 target price (down from $270.00) on shares of Duolingo in a research note on Friday. Five investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $220.26.

Duolingo Stock Performance

NASDAQ:DUOL opened at $101.00 on Friday. The firm has a market capitalization of $4.67 billion, a PE ratio of 11.85, a PEG ratio of 0.54 and a beta of 0.90. The stock’s fifty day moving average is $144.48 and its 200 day moving average is $223.10. Duolingo has a fifty-two week low of $91.99 and a fifty-two week high of $544.93. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.82 and a current ratio of 2.61.

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

Insider Transactions at Duolingo

In other news, CFO Matthew Skaruppa sold 3,986 shares of the stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $113.52, for a total transaction of $452,490.72. Following the transaction, 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Natalie Glance sold 3,545 shares of the firm’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $113.51, for a total value of $402,392.95. Following the transaction, the insider owned 115,380 shares in the company, valued at approximately $13,096,783.80. This represents a 2.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 14,939 shares of company stock valued at $1,676,291 over the last 90 days. 18.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Duolingo

Several hedge funds have recently modified their holdings of the business. EFG International AG purchased a new stake in shares of Duolingo during the fourth quarter valued at $26,000. Atlantic Union Bankshares Corp acquired a new stake in Duolingo during the 3rd quarter worth about $32,000. AlphaCentric Advisors LLC purchased a new stake in Duolingo during the 4th quarter valued at about $33,000. Emerald Mutual Fund Advisers Trust acquired a new position in shares of Duolingo in the second quarter valued at about $40,000. Finally, Farther Finance Advisors LLC increased its holdings in shares of Duolingo by 82.2% in the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock valued at $43,000 after purchasing an additional 60 shares during the period. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Duolingo News Roundup

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q4 results beat estimates — revenue and EPS topped expectations and the company reported strong margin metrics. Earnings Report
• Positive Sentiment: User scale: Duolingo closed 2025 with >50M daily active users and topped $1B in bookings — evidence of continued product adoption. Shareholder Letter
• Positive Sentiment: Strong full-year profitability: reports note roughly $400M profit for 2025, underlining unit economics at scale. Profit Article
• Neutral Sentiment: Management is explicitly shifting to prioritize user growth over near-term monetization, saying bookings and revenue growth will slow as they aim for 100M DAUs by 2028. Reuters Strategy Piece
• Neutral Sentiment: Management set explicit DAU growth targets and framed short-term profitability trade-offs as part of a longer-term expansion plan. Seeking Alpha
• Negative Sentiment: Guidance disappointment: FY‑2026 and Q1 2026 revenue/bookings guidance came in below Street expectations, triggering sharp intraday selling. Guidance/Miss Report
• Negative Sentiment: Analyst downgrades and price-target cuts accelerated the sell-off (multiple firms cut targets and/or ratings after the call). Analyst Moves
• Negative Sentiment: Regulatory/litigation risk: investor law firms have launched probes into DUOL, increasing uncertainty and potential legal overhang. Investigation Alert
• Negative Sentiment: High-volume selling and negative press amplified moves — multiple outlets flagged a steep intraday decline and described investor concern over the strategy shift. Barron’s

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.