Needham & Company LLC Issues Pessimistic Forecast for Duolingo (NASDAQ:DUOL) Stock Price

Duolingo (NASDAQ:DUOL) had its price objective reduced by equities research analysts at Needham & Company LLC from $300.00 to $145.00 in a report issued on Friday,Benzinga reports. The firm presently has a “buy” rating on the stock. Needham & Company LLC’s target price would suggest a potential upside of 23.46% from the company’s current price.

Several other research firms have also issued reports on DUOL. Citigroup restated a “market perform” rating on shares of Duolingo in a report on Monday, January 12th. JPMorgan Chase & Co. dropped their price target on Duolingo from $300.00 to $200.00 and set an “overweight” rating on the stock in a research note on Tuesday, January 20th. UBS Group set a $245.00 target price on shares of Duolingo in a research note on Monday, January 5th. Wells Fargo & Company decreased their target price on Duolingo from $185.00 to $160.00 and set an “underweight” rating for the company in a research report on Thursday, January 8th. Finally, Scotiabank reduced their price objective on Duolingo from $600.00 to $300.00 and set a “sector outperform” rating for the company in a research note on Thursday, November 6th. Ten analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $276.58.

Duolingo Stock Performance

NASDAQ:DUOL opened at $117.45 on Friday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.82 and a current ratio of 2.82. Duolingo has a fifty-two week low of $104.51 and a fifty-two week high of $544.93. The company has a 50 day simple moving average of $146.18 and a two-hundred day simple moving average of $226.19. The company has a market capitalization of $5.43 billion, a PE ratio of 14.89, a P/E/G ratio of 0.60 and a beta of 0.86.

Insider Buying and Selling

In other Duolingo news, CFO Matthew Skaruppa sold 3,986 shares of the stock in a transaction dated 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 sale, the chief financial officer owned 31,631 shares in the company, valued at approximately $3,590,751.12. This trade represents a 11.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Natalie Glance sold 3,545 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the insider directly owned 115,380 shares of the company’s stock, valued at approximately $13,096,783.80. This represents a 2.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 14,939 shares of company stock valued at $1,676,291. 15.67% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Duolingo

Large investors have recently made changes to their positions in the business. EFG International AG bought a new stake in Duolingo in the fourth quarter worth about $26,000. Atlantic Union Bankshares Corp bought a new stake in shares of Duolingo in the 3rd quarter worth approximately $32,000. AlphaCentric Advisors LLC purchased a new position in Duolingo in the fourth quarter valued at approximately $33,000. Emerald Mutual Fund Advisers Trust purchased a new position in Duolingo in the second quarter valued at approximately $40,000. Finally, Farther Finance Advisors LLC grew its holdings 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 purchasing an additional 60 shares during the period. 91.59% of the stock is owned by hedge funds and other institutional investors.

Duolingo News Summary

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q4 beats: Duolingo reported $0.91 EPS (above $0.78 est.) and $282.9M revenue (above ~$276M est.), and said it closed 2025 with >50M DAU and >$1B in bookings — evidence of strong underlying user and profitability metrics. Press Release
• Positive Sentiment: Long-term user target: Management set a goal of ~20% DAU growth and 100M users by 2028, signaling an aggressive growth push that could expand monetization opportunities if achieved. Seeking Alpha
• Neutral Sentiment: AI and buyback discussion: Management plans increased AI investment and has discussed buyback activity; these moves aim to defend market position but raise near-term cost and valuation questions. Yahoo Finance
• Negative Sentiment: Strategy shift hits guidance: Duolingo warned FY‑2026 revenue ~ $1.2B vs. consensus ~$1.3B and Q1 revenue ~$288.5M vs. ~$289.3M est., and forecast softer bookings as it prioritizes DAU growth — the weaker forward outlook spooked investors. WSJ
• Negative Sentiment: Market reaction and volatility: Coverage and headlines note a sharp share drop after the call as Wall Street reacts negatively to sacrificing near-term revenue for DAU — Barron’s calls the strategy shake‑up a key reason for the stock plunge. Barron’s
• Negative Sentiment: Investor/legal risk: A law firm (Johnson Fistel) announced an investigation into potential securities claims tied to Duolingo executives, which can increase legal uncertainty and investor concern. Newsfile
• Negative Sentiment: Rising short interest: Short interest jumped in February (to ~23% of float), raising the potential for continued selling pressure and volatility. InsiderMonkey

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.