Duolingo (NASDAQ:DUOL) Upgraded at Bank of America

Bank of America upgraded shares of Duolingo (NASDAQ:DUOL) from a neutral rating to a buy rating in a research report sent to investors on Monday, Marketbeat reports. They currently have $250.00 price target on the stock, down from their previous price target of $301.00.

DUOL has been the topic of several other research reports. DA Davidson dropped their target price on shares of Duolingo from $220.00 to $205.00 and set a “neutral” rating on the stock in a research report on Wednesday, December 3rd. Morgan Stanley set a $300.00 price target on Duolingo in a report on Thursday, November 6th. Weiss Ratings restated a “hold (c)” rating on shares of Duolingo in a research note on Monday, December 29th. Citigroup lowered Duolingo from a “buy” rating to a “market perform” rating in a research report on Thursday, November 6th. Finally, JPMorgan Chase & Co. lowered their target price on Duolingo from $465.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, November 6th. Twelve investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $311.00.

Duolingo Price Performance

Shares of NASDAQ:DUOL opened at $176.30 on Monday. The company has a current ratio of 2.82, a quick ratio of 2.82 and a debt-to-equity ratio of 0.07. The stock has a market cap of $8.15 billion, a PE ratio of 22.34, a price-to-earnings-growth ratio of 0.94 and a beta of 0.87. The stock’s fifty day simple moving average is $193.16 and its two-hundred day simple moving average is $286.24. Duolingo has a 1-year low of $166.27 and a 1-year high of $544.93.

Duolingo (NASDAQ:DUOL) last announced its earnings results on Wednesday, November 5th. The company reported $5.95 EPS for the quarter, beating the consensus estimate of $0.72 by $5.23. Duolingo had a net margin of 40.03% and a return on equity of 14.02%. The company had revenue of $271.71 million during the quarter, compared to the consensus estimate of $260.14 million. During the same quarter in the prior year, the company posted $0.49 earnings per share. The firm’s revenue for the quarter was up 41.1% on a year-over-year basis. As a group, analysts forecast that Duolingo will post 2.03 EPS for the current fiscal year.

Insider Transactions at Duolingo

In other Duolingo news, insider Severin Hacker sold 10,000 shares of the company’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $172.74, for a total transaction of $1,727,400.00. Following the sale, the insider directly owned 72 shares of the company’s stock, valued at $12,437.28. This represents a 99.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Matthew Skaruppa sold 3,059 shares of the stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $175.76, for a total transaction of $537,649.84. Following the transaction, the chief financial officer owned 37,487 shares of the company’s stock, valued at $6,588,715.12. This represents a 7.54% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 53,169 shares of company stock valued at $11,605,151. 15.67% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Duolingo

Several institutional investors have recently made changes to their positions in the stock. Dragoneer Investment Group LLC grew its position in shares of Duolingo by 324.4% in the third quarter. Dragoneer Investment Group LLC now owns 1,580,787 shares of the company’s stock valued at $508,760,000 after purchasing an additional 1,208,346 shares in the last quarter. Baillie Gifford & Co. boosted its stake in Duolingo by 28.6% in the 3rd quarter. Baillie Gifford & Co. now owns 2,827,834 shares of the company’s stock worth $910,110,000 after purchasing an additional 628,943 shares during the period. Norges Bank purchased a new position in Duolingo during the 2nd quarter valued at about $192,965,000. Balyasny Asset Management L.P. increased its position in shares of Duolingo by 22,970.4% during the third quarter. Balyasny Asset Management L.P. now owns 415,268 shares of the company’s stock valued at $133,650,000 after buying an additional 413,468 shares during the period. Finally, AQR Capital Management LLC lifted its holdings in shares of Duolingo by 78.4% in the third quarter. AQR Capital Management LLC now owns 740,869 shares of the company’s stock worth $238,441,000 after buying an additional 325,648 shares in the last quarter. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Key Headlines Impacting Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Bank of America upgraded Duolingo to a “Buy,” framing the company as more than a language app and helping trigger a rally earlier in the week. Bank of America Upgrades Duolingo (NASDAQ:DUOL) to “Buy”
• Positive Sentiment: Truist initiated coverage with a Buy and a $245 price target (about ~39% above recent levels), reinforcing the bullish narrative around Duolingo’s growth and AI investment. Truist coverage and $245 PT
• Positive Sentiment: Major outlets are featuring Duolingo as an AI play — Barron’s and other coverage highlight the company as a beneficiary of the AI-driven shift in education technology, which supports longer-term upside sentiment. AI Is ‘Transformative’ for Economy. Duolingo and 5 Other Stocks to Play the Shift.
• Positive Sentiment: Coverage noting the stock jumped after Bank of America’s bullish note points to immediate buying demand from investors viewing Duolingo as executing beyond a simple app. Duolingo Stock Jumps After Bank of America Says It’s More Than A Language App
• Neutral Sentiment: Valuation-focused pieces examine DUOL after the analyst upgrades and AI push — they highlight both upside catalysts and valuation questions, leaving the stock’s fair value a focus for investors. A Look At Duolingo (DUOL) Valuation After Analyst Upgrades And Push Into AI-Powered Learning
• Neutral Sentiment: New institutional adoption: reporting that New Zealand universities will accept Duolingo’s English proficiency test increases TAM and credibility but is an incremental, not transformational, revenue item in the near term. NZ universities accepting English proficiency tests through Duolingo
• Negative Sentiment: Short-term pullback: market-pace weakness pushed DUOL lower in a session where broader market strength contrasted with the stock’s decline, suggesting profit-taking or rotation away from recent AI/education winners. Duolingo, Inc. (DUOL) Stock Falls Amid Market Uptick
• Negative Sentiment: Competitive signal: an article about a Duolingo alternative resonating with users underscores ongoing competition in language learning that could pressure engagement or pricing if rivals scale. This Duolingo alternative changed the way I learn languages

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.