The Goldman Sachs Group Lowers Duolingo (NASDAQ:DUOL) Price Target to $105.00

Duolingo (NASDAQ:DUOL) had its price objective cut by analysts at The Goldman Sachs Group from $250.00 to $105.00 in a research report issued on Monday,Benzinga reports. The firm currently has a “neutral” rating on the stock. The Goldman Sachs Group’s target price points to a potential upside of 3.34% from the stock’s previous close.

A number of other analysts have also recently commented on the stock. Truist Financial cut shares of Duolingo from a “buy” rating to a “hold” rating and set a $100.00 target price for the company. in a research note on Friday, February 27th. Needham & Company LLC cut their target price on Duolingo from $300.00 to $145.00 and set a “buy” rating on the stock in a research report on Friday, February 27th. Citizens Jmp downgraded Duolingo from a “market outperform” rating to a “hold” rating in a research note on Thursday, November 6th. Wells Fargo & Company reduced their price objective on Duolingo from $185.00 to $160.00 and set an “underweight” rating for the company in a research note on Thursday, January 8th. Finally, UBS Group set a $245.00 target price on Duolingo in a research report on Monday, January 5th. Five investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $206.32.

Duolingo Trading Up 0.8%

NASDAQ DUOL opened at $101.61 on Monday. The company has a quick ratio of 2.82, a current ratio of 2.61 and a debt-to-equity ratio of 0.07. The firm has a market cap of $4.70 billion, a PE ratio of 11.93, a price-to-earnings-growth ratio of 0.66 and a beta of 0.90. The company has a 50 day moving average price of $141.24 and a 200 day moving average price of $219.90. Duolingo has a 52 week low of $91.99 and a 52 week high of $544.93.

Duolingo (NASDAQ:DUOL) last announced its earnings results on Thursday, February 26th. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.12. The company had revenue of $282.87 million during the quarter, compared to the consensus estimate of $275.95 million. Duolingo had a net margin of 39.91% and a return on equity of 14.88%. Duolingo’s revenue for the quarter was up 35.0% on a year-over-year basis. As a group, sell-side analysts forecast that Duolingo will post 2.03 EPS for the current fiscal year.

Insider Activity

In other news, insider Robert Meese sold 1,000 shares of the stock in a transaction dated Tuesday, February 17th. The shares were 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 $13,497,318.16. This represents a 0.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Natalie Glance sold 3,545 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $113.51, for a total value of $402,392.95. Following the sale, the insider owned 115,380 shares in the company, valued at $13,096,783.80. This trade represents a 2.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 14,939 shares of company stock valued at $1,676,291. 18.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Duolingo

Institutional investors have recently bought and sold shares of the business. EFG International AG acquired a new position in shares of Duolingo during the 4th quarter worth approximately $26,000. Atlantic Union Bankshares Corp purchased a new position in Duolingo during the third quarter valued at $32,000. AlphaCentric Advisors LLC acquired a new stake in shares of Duolingo in the fourth quarter valued at about $33,000. Farther Finance Advisors LLC increased its stake in shares of Duolingo by 82.2% during the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock worth $43,000 after purchasing an additional 60 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Duolingo during the 4th quarter worth about $43,000. 91.59% of the stock is owned by institutional investors and hedge funds.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Company-backed buyback: Duolingo signaled support for user-growth and AI initiatives with a US$400M buyback plan — a clear cash-return / confidence signal that can underpin the share price. Duolingo Backs User Growth And AI With US$400m Buyback Plan
• Neutral Sentiment: Short-interest reports look anomalous/zero in the March filings (reported 0 shares / 0.0 days), so they offer no clear signal to traders at present. (Likely data/reporting quirk.)
• Negative Sentiment: Multiple law firms (Pomerantz; Faruqi & Faruqi) have announced investigations/claims on behalf of Duolingo investors — increased litigation risk that can pressure the stock and investor sentiment. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duolingo, Inc. – DUOL DUOL SHAREHOLDER REMINDER: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Duolingo
• Negative Sentiment: Analysts are cutting price targets and maintaining cautious/neutral ratings: Goldman Sachs cut its PT to $105 (neutral), Barclays to $110 (equal weight), DA Davidson to $85, Needham lowered its PT and several firms reiterated hold/neutral — downward revisions increase selling pressure and limit upside. Goldman Sachs Lowers Price Target to $105
• Negative Sentiment: Critical media and research pieces highlight decelerating growth, margin compression and strategic uncertainty (management shifting to user growth vs. monetization). Such narratives can weigh on valuation after the stock’s large multi-year decline. Duolingo: The 80% Drop Doesn’t Make It Cheap Duolingo: Heading To The Unknown – Avoid Duolingo Stock Is Falling Off a Cliff, Continuing a Dramatic Collapse
• Negative Sentiment: Competitive risk: reports that Google launched a new language-learning tool raise product/market-share concerns in the long run. Goodbye Duolingo: Google has just launched a new language learning tool

About Duolingo

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.