Duolingo’s (DUOL) Neutral Rating Reiterated at JPMorgan Chase & Co.

JPMorgan Chase & Co. restated their neutral rating on shares of Duolingo (NASDAQ:DUOL) in a research report released on Friday morning, Marketbeat reports. The firm currently has a $95.00 price target on the stock, down from their previous price target of $200.00.

Several other research firms also recently commented on DUOL. Evercore set a $330.00 price objective on shares of Duolingo and gave the company an “outperform” rating in a report on Thursday, November 6th. Wells Fargo & Company decreased their price target on shares of Duolingo from $185.00 to $160.00 and set an “underweight” rating on the stock in a research note on Thursday, January 8th. Bank of America raised shares of Duolingo from a “neutral” rating to a “buy” rating and lowered their price target for the company from $301.00 to $250.00 in a report on Monday, January 5th. Citizens Jmp cut Duolingo from a “market outperform” rating to a “hold” rating in a report on Thursday, November 6th. Finally, Scotiabank decreased their target price on Duolingo from $600.00 to $300.00 and set a “sector outperform” rating on the stock in a research report on Thursday, November 6th. Five equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $220.26.

Duolingo Trading Down 14.0%

Shares of NASDAQ:DUOL opened at $101.00 on Friday. Duolingo has a 52-week low of $91.99 and a 52-week high of $544.93. The company has a market capitalization 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 50-day simple moving average of $144.48 and a 200 day simple moving average of $223.10. 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 issued its earnings results 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 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 the consensus estimate of $275.95 million. Duolingo’s quarterly revenue was up 35.0% compared to the same quarter last year. Sell-side analysts forecast that Duolingo will post 2.03 earnings per share for the current year.

Insider Buying and Selling at Duolingo

In other Duolingo news, General Counsel Stephen C. Chen sold 1,901 shares of the firm’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $113.26, for a total transaction of $215,307.26. Following the transaction, the general counsel owned 30,545 shares in the company, valued at $3,459,526.70. This trade represents a 5.86% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Matthew Skaruppa sold 3,986 shares of Duolingo stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $113.52, for a total value of $452,490.72. Following the completion of the transaction, the chief financial officer directly owned 31,631 shares of the company’s stock, valued at $3,590,751.12. This represents a 11.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 14,939 shares of company stock valued at $1,676,291 over the last ninety days. Company insiders own 18.30% of the company’s stock.

Institutional Investors Weigh In On Duolingo

A number of large investors have recently bought and sold shares of DUOL. Baillie Gifford & Co. boosted its holdings in shares of Duolingo by 71.9% in the 4th quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company’s stock valued at $853,184,000 after purchasing an additional 2,033,611 shares in the last quarter. Dragoneer Investment Group LLC raised its holdings in shares of Duolingo by 324.4% during the 3rd quarter. Dragoneer Investment Group LLC now owns 1,580,787 shares of the company’s stock worth $508,760,000 after buying an additional 1,208,346 shares in the last quarter. State of Michigan Retirement System lifted its position in shares of Duolingo by 5,800.0% during the 4th quarter. State of Michigan Retirement System now owns 560,500 shares of the company’s stock worth $98,368,000 after buying an additional 551,000 shares during the last quarter. FIL Ltd boosted its stake in Duolingo by 1,715,575.9% in the fourth quarter. FIL Ltd now owns 497,546 shares of the company’s stock valued at $87,319,000 after buying an additional 497,517 shares in the last quarter. Finally, Norges Bank bought a new position in Duolingo in the fourth quarter valued at about $86,159,000. 91.59% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Duolingo

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.