Duolingo’s (DUOL) Buy Rating Reiterated at DA Davidson

DA Davidson restated their buy rating on shares of Duolingo (NASDAQ:DUOL) in a report published on Monday,Benzinga reports. DA Davidson currently has a $175.00 target price on the stock.

DUOL has been the subject of a number of other research reports. Needham & Company LLC reaffirmed a “buy” rating and issued a $145.00 price objective on shares of Duolingo in a research note on Thursday, August 6th. Morgan Stanley boosted their target price on shares of Duolingo from $95.00 to $125.00 and gave the company an “equal weight” rating in a research note on Thursday, July 16th. KeyCorp upgraded Duolingo from a “hold” rating to an “overweight” rating in a report on Tuesday, August 18th. Truist Financial raised their target price on Duolingo from $100.00 to $120.00 and gave the stock a “hold” rating in a research report on Thursday, August 6th. Finally, Wells Fargo & Company assumed coverage on Duolingo in a report on Tuesday, August 18th. They set an “overweight” rating on the stock. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $124.38.

Duolingo Price Performance

NASDAQ DUOL opened at $148.17 on Monday. The company has a current ratio of 2.72, a quick ratio of 2.72 and a debt-to-equity ratio of 0.06. Duolingo has a 1 year low of $87.89 and a 1 year high of $353.00. The company has a market cap of $6.93 billion, a PE ratio of 17.56, a PEG ratio of 1.26 and a beta of 0.89. The stock’s 50-day moving average price is $139.04 and its two-hundred day moving average price is $118.91.

Duolingo (NASDAQ:DUOL) last released its earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.06. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The business had revenue of $298.45 million for the quarter, compared to the consensus estimate of $295.58 million. During the same period last year, the firm posted $0.91 earnings per share. The firm’s quarterly revenue was up 18.3% compared to the same quarter last year. On average, analysts predict that Duolingo will post 2.62 EPS for the current year.

Insider Activity at Duolingo

In other Duolingo news, insider Natalie Glance sold 2,751 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $129.13, for a total value of $355,236.63. Following the transaction, the insider owned 170,650 shares in the company, valued at approximately $22,036,034.50. This represents a 1.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director William Gordon sold 10,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $145.67, for a total transaction of $1,456,700.00. Following the completion of the sale, the director owned 68,415 shares of the company’s stock, valued at approximately $9,966,013.05. The trade was a 12.75% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 24,740 shares of company stock valued at $3,536,474. Company insiders own 16.62% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Capital World Investors raised its stake in shares of 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 purchasing an additional 11,140 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Duolingo by 2.5% in the 4th quarter. Geode Capital Management LLC now owns 811,809 shares of the company’s stock valued at $142,501,000 after buying an additional 19,698 shares in the last quarter. Bank of America Corp DE increased its holdings in Duolingo by 511.2% in the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock worth $131,325,000 after buying an additional 1,114,315 shares during the last quarter. State of Michigan Retirement System increased its holdings in Duolingo by 112.9% in the first quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company’s stock worth $117,624,000 after buying an additional 632,807 shares during the last quarter. Finally, Norges Bank acquired a new position in Duolingo in the fourth quarter worth approximately $86,159,000. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo ranked 80 positions ahead of Netflix in a new power ranking, highlighting the strength of its consumer brand and growth profile. Duolingo beats Netflix by 80 spots in new power ranking
• Positive Sentiment: DA Davidson reaffirmed its “Buy” rating, providing continued support from at least one research firm. DA Davidson Reaffirms Buy Rating for Duolingo
• Positive Sentiment: Institutional ownership remains high at 91.59%, while several large investors—including Bank of America, the State of Michigan Retirement System and Norges Bank—recently increased or initiated positions.
• Neutral Sentiment: Brokerages collectively maintain a “Hold” recommendation, with one Strong Buy, eight Buys, 14 Holds and one Sell. The average price target of $124.38 is below recent trading levels, suggesting analysts see limited near-term upside. Duolingo Given Consensus Recommendation of Hold
• Neutral Sentiment: Investor attention has increased, with Duolingo among the stocks heavily searched on Zacks; however, the report did not identify a new fundamental catalyst. Investors Heavily Search Duolingo
• Negative Sentiment: General Counsel Stephen Chen sold 8,072 shares for approximately $1.2 million, reducing his direct ownership by 15.57%. The sale was made under a pre-arranged Rule 10b5-1 plan, which makes it a less concerning signal, but insider selling can still weigh on sentiment. Duolingo General Counsel Sells 8,072 Shares
• Negative Sentiment: Reviews comparing Rocket Languages with Duolingo underscore competitive pressure in the language-learning market, although the article does not provide evidence of a material shift in Duolingo’s results. Will Rocket Languages’ Audio Lessons Blast You Past Duolingo?

About Duolingo

Duolingo, Inc develops digital learning products designed to make education accessible through mobile devices and the web. Its primary product is the Duolingo language-learning platform, which offers courses in numerous languages through interactive, game-like lessons, practice exercises and personalized learning features.

The company also provides the Duolingo English Test, an online English-proficiency assessment used by educational institutions and other organizations. In addition, Duolingo has expanded beyond language learning with products such as Duolingo Math and Duolingo Music, while offering premium subscription features through plans including Super Duolingo and Duolingo Max.

Duolingo serves users internationally, with its applications and online services available across a broad range of geographies.