Duolingo (NASDAQ:DUOL – Get Free Report) had its price target cut by equities researchers at Barclays from $230.00 to $110.00 in a research report issued on Monday,Benzinga reports. The firm presently has an “equal weight” rating on the stock. Barclays‘s price target would suggest a potential upside of 13.34% from the company’s current price.
A number of other analysts also recently issued reports on DUOL. Morgan Stanley reaffirmed an “equal weight” rating and set a $100.00 price target (down from $245.00) on shares of Duolingo in a report on Friday. Evercore reaffirmed a “hold” rating and issued a $114.00 price target on shares of Duolingo in a report on Friday. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $95.00 price target (down from $200.00) on shares of Duolingo in a research note on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Duolingo in a research report on Monday, December 29th. Finally, Wells Fargo & Company dropped their target price on shares of Duolingo from $185.00 to $160.00 and set an “underweight” rating on the stock in a research report on Thursday, January 8th. Five equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $213.95.
Read Our Latest Stock Analysis on DUOL
Duolingo Trading Down 3.9%
Duolingo (NASDAQ:DUOL – Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported $0.91 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to analyst estimates of $275.95 million. The company’s quarterly revenue was up 35.0% compared to the same quarter last year. Sell-side analysts expect that Duolingo will post 2.03 earnings per share for the current fiscal year.
Insiders Place Their Bets
In other Duolingo news, CFO Matthew Skaruppa sold 3,986 shares of the business’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $113.52, for a total transaction of $452,490.72. Following the sale, the chief financial officer directly owned 31,631 shares in the company, valued at approximately $3,590,751.12. The trade was a 11.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Stephen C. Chen sold 1,901 shares of the company’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 directly owned 30,545 shares in the company, valued at approximately $3,459,526.70. This trade represents a 5.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 14,939 shares of company stock worth $1,676,291. Insiders own 18.30% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently added to or reduced their stakes in DUOL. Baillie Gifford & Co. increased its position in shares of Duolingo by 71.9% in the fourth quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company’s stock valued at $853,184,000 after buying an additional 2,033,611 shares in the last quarter. Dragoneer Investment Group LLC raised its holdings in Duolingo by 324.4% in the 3rd 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. State of Michigan Retirement System boosted its stake in Duolingo by 5,800.0% in 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 increased its holdings in shares of Duolingo by 1,715,575.9% during the 4th quarter. FIL Ltd now owns 497,546 shares of the company’s stock worth $87,319,000 after buying an additional 497,517 shares during the last quarter. Finally, Norges Bank acquired a new stake in Duolingo during the fourth quarter worth about $86,159,000. 91.59% of the stock is currently owned by institutional investors and hedge funds.
Trending Headlines about Duolingo
Here are the key news stories impacting Duolingo this week:
- Positive Sentiment: Q4 financial beat and strong free cash flow reinforce profitability thesis—Duolingo delivered solid sales, FCF and an EPS beat, evidence the business can still generate cash despite user-growth headwinds. Read More.
- Neutral Sentiment: Many brokerages (Bank of America, Scotiabank, Citigroup, Evercore, Morgan Stanley, JPMorgan) reiterated Neutral/Hold/Equal‑Weight ratings—signaling consensus caution rather than bullish conviction. Read More.
- Neutral Sentiment: Analyst writeups flag Duolingo’s AI investments and product roadmap as key watch items—management is balancing AI ambition with slower top‑line growth, making execution and monetization the next catalysts to watch. Read More.
- Negative Sentiment: DA Davidson cut its price target to $85, signaling a materially lower valuation expectation and contributing to selling pressure. Read More.
- Negative Sentiment: Needham trimmed its price target to $145 and Truist cut the stock to Hold—additional downgrades and lower targets are reinforcing negative sentiment. Read More.
- Negative Sentiment: Analyst commentary and coverage emphasize decelerating DAU/MAU and guidance for only ~11% bookings growth in FY2026 with EBITDA margin compression—raising concerns about saturation and limited upside from reinvestment. Read More.
- Negative Sentiment: Market reaction: shares already gapped down after the earnings/guidance headline and subsequent analyst actions; coverage frames the results as trading short-term bookings for MAU gains. Read More.
- Negative Sentiment: Media pieces highlight pressure on the freemium conversion model—investors should watch ARPU vs. retention metrics closely as higher monetization could hurt engagement. Read More.
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.
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