Bank of America Reiterates Neutral Rating for Duolingo (NASDAQ:DUOL)

Duolingo (NASDAQ:DUOL)‘s stock had its “neutral” rating restated by analysts at Bank of America in a report released on Friday, Marketbeat.com reports. They presently have a $100.00 price target on the stock. Bank of America‘s price objective would suggest a potential downside of 0.99% from the company’s current price.

Other equities analysts have also recently issued reports about the stock. Citigroup restated a “neutral” rating and issued a $101.00 target price (down from $270.00) on shares of Duolingo in a research report on Friday. Truist Financial set a $245.00 price objective on shares of Duolingo in a research report on Thursday, January 15th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $100.00 target price (down from $245.00) on shares of Duolingo in a report on Friday. KeyCorp cut Duolingo from an “overweight” rating to a “sector weight” rating in a report on Thursday, November 6th. Finally, Needham & Company LLC dropped their price objective on Duolingo from $300.00 to $145.00 and set a “buy” rating for the company in a research report on Friday. Five analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $220.26.

Duolingo Stock Performance

NASDAQ:DUOL opened at $101.00 on Friday. The stock has a fifty day moving average price of $144.48 and a 200-day moving average price of $223.84. The company has a market cap of $4.67 billion, a price-to-earnings ratio of 11.85, a PEG ratio of 0.54 and a beta of 0.86. 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 $91.99 and a fifty-two week high of $544.93.

Duolingo (NASDAQ:DUOL) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.91 EPS for the quarter, topping analysts’ consensus estimates of $0.79 by $0.12. The company had revenue of $282.87 million for the quarter, compared to analysts’ expectations of $275.95 million. Duolingo had a return on equity of 14.02% and a net margin of 40.03%.The company’s revenue was up 35.0% compared to the same quarter last year. As a group, equities analysts anticipate that Duolingo will post 2.03 EPS for the current fiscal year.

Insider Transactions at Duolingo

In other news, insider Robert Meese sold 1,000 shares of Duolingo stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $110.06, for a total transaction of $110,060.00. Following the sale, the insider directly owned 122,636 shares of the company’s stock, valued at approximately $13,497,318.16. This trade represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Stephen C. Chen sold 1,901 shares of the company’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $113.26, for a total value of $215,307.26. Following the completion of the transaction, the general counsel directly owned 30,545 shares of the company’s stock, valued at $3,459,526.70. This represents a 5.86% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 14,939 shares of company stock worth $1,676,291. Insiders own 15.67% of the company’s stock.

Institutional Investors Weigh In On Duolingo

Hedge funds have recently added to or reduced their stakes in the business. New York Life Investment Management LLC increased its holdings in Duolingo by 0.7% in the second quarter. New York Life Investment Management LLC now owns 4,067 shares of the company’s stock valued at $1,668,000 after purchasing an additional 30 shares during the period. Meiji Yasuda Asset Management Co Ltd. increased its stake in shares of Duolingo by 3.5% in the second quarter. Meiji Yasuda Asset Management Co Ltd. now owns 940 shares of the company’s stock valued at $385,000 after buying an additional 32 shares during the period. Evergreen Capital Management LLC raised its position in shares of Duolingo by 5.0% during the second quarter. Evergreen Capital Management LLC now owns 818 shares of the company’s stock worth $335,000 after acquiring an additional 39 shares during the last quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych raised its position in shares of Duolingo by 22.2% during the third quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 220 shares of the company’s stock worth $71,000 after acquiring an additional 40 shares during the last quarter. Finally, True Wealth Design LLC lifted its stake in shares of Duolingo by 38.6% in the second quarter. True Wealth Design LLC now owns 176 shares of the company’s stock worth $72,000 after acquiring an additional 49 shares during the period. 91.59% of the stock is currently owned by institutional investors and hedge funds.

Duolingo News Summary

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q4 results beat estimates — revenue and EPS topped expectations and the company reported strong margin metrics. Earnings Report
• Positive Sentiment: User scale: Duolingo closed 2025 with >50M daily active users and topped $1B in bookings — evidence of continued product adoption. Shareholder Letter
• Positive Sentiment: Strong full-year profitability: reports note roughly $400M profit for 2025, underlining unit economics at scale. Profit Article
• Neutral Sentiment: Management is explicitly shifting to prioritize user growth over near-term monetization, saying bookings and revenue growth will slow as they aim for 100M DAUs by 2028. Reuters Strategy Piece
• Neutral Sentiment: Management set explicit DAU growth targets and framed short-term profitability trade-offs as part of a longer-term expansion plan. Seeking Alpha
• Negative Sentiment: Guidance disappointment: FY‑2026 and Q1 2026 revenue/bookings guidance came in below Street expectations, triggering sharp intraday selling. Guidance/Miss Report
• Negative Sentiment: Analyst downgrades and price-target cuts accelerated the sell-off (multiple firms cut targets and/or ratings after the call). Analyst Moves
• Negative Sentiment: Regulatory/litigation risk: investor law firms have launched probes into DUOL, increasing uncertainty and potential legal overhang. Investigation Alert
• Negative Sentiment: High-volume selling and negative press amplified moves — multiple outlets flagged a steep intraday decline and described investor concern over the strategy shift. Barron’s

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.