Duolingo (NASDAQ:DUOL) Stock Jumps 4.9% – Time to Buy?

Duolingo, Inc. (NASDAQ:DUOL) shares rose 4.9% on Friday. The stock traded as high as $165.30 and last traded at $165.16. 268,786 shares changed hands during trading, a decline of 85% from the average session volume of 1,786,045 shares. The stock had previously closed at $157.42.

Latest Duolingo News

Here’s some of the latest news about DUOL:

• Positive Sentiment: Duolingo’s CEO argued that ChatGPT and live translation are unlikely to replace the app, and said open-weight AI models have reduced the cost of some tasks to less than a cent. The comments may reassure investors about the product’s differentiation and AI costs. Article: Duolingo CEO explains why ChatGPT and live translation won’t replace the app Article: Open-weight AI models cut some Duolingo costs to less than a cent, says CEO
• Negative Sentiment: Several law firms publicized a securities class action filed against Duolingo, with a December 7, 2026 deadline to seek lead-plaintiff status. The complaint alleges investors were misled about the sustainability of user growth while the company shifted toward AI-generated lessons; these claims have not been proven. Multiple notices repeat the same lawsuit, rather than representing separate cases. Article: DUOL Investor Alert Article: Kaplan Fox advises Duolingo investors of class action deadline
• Negative Sentiment: A proposed EU Digital Fairness Act could scrutinize app features including Duolingo’s streaks and autoplay. If adopted, new rules could require product changes or add compliance costs, though the proposal is not yet law. Article: EU’s proposed Digital Fairness Act takes aim at Duolingo

Analyst Ratings Changes

Several equities analysts have commented on DUOL shares. Barclays raised their price target on shares of Duolingo from $115.00 to $133.00 and gave the company an “equal weight” rating in a research report on Wednesday, November 4th. Compass Point assumed coverage on Duolingo in a research report on Tuesday, August 18th. They set a “buy” rating on the stock. Morgan Stanley upped their price objective on Duolingo from $140.00 to $145.00 and gave the stock an “equal weight” rating in a research report on Wednesday, November 4th. Needham & Company LLC increased their price objective on Duolingo from $145.00 to $165.00 and gave the company a “buy” rating in a research note on Wednesday, November 4th. Finally, Evercore set a $128.00 target price on Duolingo in a report on Wednesday, November 4th. Eight research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Duolingo currently has a consensus rating of “Hold” and an average target price of $148.75.

Duolingo Price Performance

The stock’s 50 day moving average is $146.04 and its two-hundred day moving average is $124.35. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.75 and a quick ratio of 2.75. The stock has a market capitalization of $7.74 billion, a PE ratio of 54.62, a price-to-earnings-growth ratio of 1.29 and a beta of 1.08.

Duolingo (NASDAQ:DUOL) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported $0.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.03). Duolingo had a return on equity of 10.35% and a net margin of 12.33%. The firm had revenue of $309.01 million during the quarter, compared to analysts’ expectations of $303.20 million. During the same quarter in the prior year, the firm earned $5.95 EPS. The firm’s revenue was up 13.7% compared to the same quarter last year. As a group, sell-side analysts forecast that Duolingo, Inc. will post 2.72 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Luis van Ahn sold 110,046 shares of the stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $151.70, for a total value of $16,693,978.20. Following the transaction, the chief executive officer owned 110,046 shares of the company’s stock, valued at $16,693,978.20. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Stephen C. Chen sold 3,700 shares of the stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $175.00, for a total value of $647,500.00. Following the completion of the transaction, the general counsel directly owned 40,069 shares in the company, valued at $7,012,075. This trade represents a 8.45% 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. Insiders have sold a total of 264,440 shares of company stock valued at $39,697,193 over the last quarter. Company insiders own 16.62% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in DUOL. Childress Capital Advisors LLC raised its position in shares of Duolingo by 5.3% during the 3rd quarter. Childress Capital Advisors LLC now owns 1,925 shares of the company’s stock worth $274,000 after acquiring an additional 97 shares in the last quarter. Versant Capital Management Inc boosted its holdings in Duolingo by 73.4% in the third quarter. Versant Capital Management Inc now owns 267 shares of the company’s stock valued at $38,000 after purchasing an additional 113 shares in the last quarter. Joel Isaacson & Co. LLC boosted its holdings in Duolingo by 6.5% in the third quarter. Joel Isaacson & Co. LLC now owns 2,071 shares of the company’s stock valued at $295,000 after purchasing an additional 127 shares in the last quarter. Voya Investment Management LLC boosted its holdings in Duolingo by 6.1% in the third quarter. Voya Investment Management LLC now owns 3,126 shares of the company’s stock valued at $445,000 after purchasing an additional 181 shares in the last quarter. Finally, Heritage Family Offices LLP purchased a new position in Duolingo in the third quarter valued at approximately $27,000. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Duolingo Company Profile

Duolingo, Inc. is an educational technology company best known for its mobile and web-based language-learning platform. The app offers courses in numerous languages and uses interactive lessons, practice activities and game-like features to help learners build skills. Founded in 2011 by Luis von Ahn and Severin Hacker, the company is headquartered in Pittsburgh, Pennsylvania, and serves learners around the world. Its products also include the Duolingo English Test, an online English-proficiency assessment, and learning apps focused on subjects such as math and music.