Truist Financial Forecasts Strong Price Appreciation for Duolingo (NASDAQ:DUOL) Stock

Duolingo (NASDAQ:DUOL) had its target price hoisted by equities research analysts at Truist Financial from $100.00 to $120.00 in a report released on Thursday,Benzinga reports. The firm presently has a “hold” rating on the stock. Truist Financial’s price target would indicate a potential downside of 8.33% from the stock’s current price.

Other equities analysts have also issued reports about the company. Morgan Stanley increased their price target on Duolingo from $95.00 to $125.00 and gave the company an “equal weight” rating in a research note on Thursday, July 16th. DA Davidson raised their price objective on Duolingo from $120.00 to $130.00 and gave the stock a “neutral” rating in a research note on Thursday. Needham & Company LLC reiterated a “buy” rating and issued a $145.00 target price on shares of Duolingo in a report on Thursday. Barclays raised their target price on Duolingo from $110.00 to $115.00 and gave the stock an “equal weight” rating in a research report on Thursday. Finally, Evercore set a $105.00 price objective on Duolingo in a report on Thursday. Three equities research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $148.12.

Duolingo Price Performance

Shares of NASDAQ DUOL opened at $130.90 on Thursday. The business’s fifty day moving average price is $125.76 and its two-hundred day moving average price is $115.10. The firm has a market capitalization of $6.10 billion, a PE ratio of 15.51, a P/E/G ratio of 0.95 and a beta of 0.87. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.62. Duolingo has a 1-year low of $87.89 and a 1-year high of $415.76.

Duolingo (NASDAQ:DUOL) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.06. The company had revenue of $298.45 million during the quarter, compared to analysts’ expectations of $295.58 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The company’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.91 earnings per share. On average, research analysts expect that Duolingo will post 2.76 EPS for the current year.

Insider Activity at Duolingo

In other Duolingo news, insider Robert Meese sold 1,420 shares of the firm’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $112.16, for a total transaction of $159,267.20. Following the completion of the transaction, the insider owned 170,745 shares in the company, valued at $19,150,759.20. This trade represents a 0.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Natalie Glance sold 3,360 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $113.59, for a total value of $381,662.40. Following the transaction, the insider owned 173,401 shares of the company’s stock, valued at $19,696,619.59. This represents a 1.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 9,506 shares of company stock worth $1,073,864. Company insiders own 16.62% of the company’s stock.

Institutional Trading of Duolingo

Several large investors have recently made changes to their positions in the business. NewEdge Advisors LLC grew its stake in shares of Duolingo by 1,868.2% during the first quarter. NewEdge Advisors LLC now owns 433 shares of the company’s stock valued at $134,000 after purchasing an additional 411 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Duolingo by 123.9% in the first quarter. Goldman Sachs Group Inc. now owns 87,556 shares of the company’s stock valued at $27,190,000 after acquiring an additional 48,451 shares during the last quarter. Focus Partners Wealth boosted its stake in Duolingo by 28.3% in the first quarter. Focus Partners Wealth now owns 2,021 shares of the company’s stock valued at $628,000 after acquiring an additional 446 shares during the last quarter. Amundi lifted its stake in Duolingo by 142.1% in the second quarter. Amundi now owns 26,075 shares of the company’s stock valued at $10,352,000 after buying an additional 15,306 shares during the period. Finally, Gabelli Funds LLC bought a new position in Duolingo during the second quarter worth about $205,000. Institutional investors own 91.59% of the company’s stock.

Trending Headlines about Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo exceeded second-quarter expectations, reporting adjusted earnings of $0.66 per share versus consensus of roughly $0.60-$0.61, while revenue rose 18.3% year over year to $298.5 million, above the $295.6 million estimate. DUOL Q2 Earnings Beat Estimates on Strong User Growth
• Positive Sentiment: Daily active users increased 23% year over year, and paid subscribers continued to grow, reinforcing Duolingo’s long-term expansion strategy. Management also cited lower artificial-intelligence costs as a factor supporting profitability. Duolingo stock sinks 15% as Q3 revenue forecast misses expectations
• Positive Sentiment: Needham reaffirmed its Buy rating and set a $145 price target, while Truist raised its target to $120 from $100, indicating some analysts see value after the recent selloff. Analyst ratings and price targets
• Neutral Sentiment: Management is prioritizing engagement and user growth, targeting 100 million daily active users by 2028, but projected 2026 revenue growth of approximately 16% signals a materially slower pace than Duolingo’s historical expansion. Duolingo outlines 2026 revenue growth of approximately 16%
• Negative Sentiment: The main overhang is Duolingo’s third-quarter revenue forecast, which fell below Wall Street expectations. The guidance overshadowed the earnings and user-growth beats, prompting a sharp post-earnings selloff and raising concerns that the company’s growth engine is slowing. Duolingo posts better-than-expected sales but stock drops
• Negative Sentiment: Bank of America downgraded Duolingo to Underperform, and Truist’s Hold rating with a $120 target remains below the recent trading level, reflecting valuation and execution concerns. Bank of America downgrades Duolingo

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.