Duolingo’s (DUOL) Neutral Rating Reiterated at Bank of America

Bank of America restated their neutral rating on shares of Duolingo (NASDAQ:DUOL) in a research note issued to investors on Friday, MarketBeat reports. Bank of America currently has a $100.00 price target on the stock.

Several other research analysts have also recently weighed in on DUOL. Truist Financial set a $245.00 price objective on Duolingo in a research report on Thursday, January 15th. Citigroup reiterated a “neutral” rating and issued a $101.00 price objective (down from $270.00) on shares of Duolingo in a research note on Friday. The Goldman Sachs Group cut their price objective on shares of Duolingo from $425.00 to $250.00 and set a “neutral” rating for the company in a report on Friday, November 7th. UBS Group set a $245.00 target price on shares of Duolingo in a report on Monday, January 5th. Finally, Jefferies Financial Group lifted their price target on shares of Duolingo from $210.00 to $220.00 and gave the company a “hold” rating in a research report on Thursday, December 11th. Five investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $220.26.

Duolingo Stock Down 14.0%

Shares of DUOL opened at $101.00 on Friday. The firm has a market cap of $4.67 billion, a P/E ratio of 11.85, a price-to-earnings-growth ratio of 0.54 and a beta of 0.90. 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 has a 52 week low of $91.99 and a 52 week high of $544.93. The firm’s 50-day simple moving average is $144.48 and its 200 day simple moving average is $223.10.

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

Insider Activity

In other news, CFO Matthew Skaruppa sold 3,986 shares of the business’s 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 completion of the transaction, the chief financial officer owned 31,631 shares of the company’s stock, valued at approximately $3,590,751.12. The trade was a 11.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Robert Meese sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $110.06, for a total value of $110,060.00. Following the completion of the sale, the insider directly owned 122,636 shares in the company, valued at $13,497,318.16. This trade represents a 0.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 14,939 shares of company stock valued at $1,676,291 in the last three months. Company insiders own 18.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Baillie Gifford & Co. increased its position in Duolingo by 71.9% during the 4th quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company’s stock worth $853,184,000 after purchasing an additional 2,033,611 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of Duolingo by 3.3% in the second 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 period. Capital World Investors grew its holdings in Duolingo by 0.5% during the 4th quarter. Capital World Investors now owns 2,241,378 shares of the company’s stock worth $393,362,000 after acquiring an additional 11,140 shares during the last quarter. Dragoneer Investment Group LLC raised its stake in shares of Duolingo by 324.4% during the third quarter. Dragoneer Investment Group LLC now owns 1,580,787 shares of the company’s stock valued at $508,760,000 after acquiring an additional 1,208,346 shares during the last quarter. Finally, State Street Corp lifted its holdings in shares of Duolingo by 0.5% during the second quarter. State Street Corp now owns 1,164,387 shares of the company’s stock worth $477,422,000 after purchasing an additional 6,109 shares during the period. 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

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.