Duolingo (NASDAQ:DUOL) Stock Keeps Buy Rating at DA Davidson

Duolingo (NASDAQ:DUOL)‘s stock had its “buy” rating reaffirmed by research analysts at DA Davidson in a research report issued on Tuesday, Benzinga reports. They presently have a $175.00 price target on the stock. DA Davidson’s price target suggests a potential upside of 22.70% from the company’s current price.

A number of other analysts also recently issued reports on DUOL. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Duolingo in a report on Monday, September 14th. Bank of America downgraded shares of Duolingo from a “neutral” rating to an “underperform” rating and dropped their price target for the company from $103.00 to $93.00 in a report on Tuesday, August 4th. Argus restated a “hold” rating and set a $146.00 price target on shares of Duolingo in a research note on Tuesday, August 25th. Evercore set a $105.00 price target on Duolingo in a research note on Thursday, August 6th. Finally, UBS Group boosted their price target on Duolingo from $125.00 to $150.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Duolingo currently has an average rating of “Hold” and an average price target of $124.38.

Duolingo Stock Performance

Shares of NASDAQ DUOL traded up $8.32 during trading on Tuesday, reaching $142.62. 1,067,499 shares of the company traded hands, compared to its average volume of 1,877,132. The firm has a 50 day simple moving average of $141.33 and a 200-day simple moving average of $121.44. The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $6.67 billion, a PE ratio of 16.90, a P/E/G ratio of 1.18 and a beta of 0.89. Duolingo has a 52-week low of $87.89 and a 52-week high of $353.00.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.60 by $0.06. The firm had revenue of $298.45 million for the quarter, compared to the consensus estimate of $295.58 million. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The business’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.91 EPS. Equities research analysts anticipate that Duolingo will post 2.62 earnings per share for the current year.

Insiders Place Their Bets

In other Duolingo news, CEO Luis van Ahn sold 46,682 shares of the company’s stock in a transaction that occurred on Thursday, September 24th. The stock was sold at an average price of $150.63, for a total value of $7,031,709.66. Following the completion of the transaction, the chief executive officer directly owned 46,682 shares in the company, valued at $7,031,709.66. This represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Meese sold 1,354 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $129.13, for a total value of $174,842.02. Following the completion of the transaction, the insider owned 169,391 shares of the company’s stock, valued at $21,873,459.83. The trade was a 0.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 140,694 shares of company stock worth $20,991,914 over the last ninety days. 16.62% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Root Financial Partners LLC boosted its stake in Duolingo by 194.1% in the 1st quarter. Root Financial Partners LLC now owns 250 shares of the company’s stock worth $25,000 after purchasing an additional 165 shares during the period. FNY Investment Advisers LLC bought a new position in Duolingo in the 2nd quarter worth approximately $34,000. Banque Cantonale Vaudoise boosted its stake in Duolingo by 51.1% in the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company’s stock worth $34,000 after purchasing an additional 115 shares during the period. Caitong International Asset Management Co. Ltd bought a new position in Duolingo in the 4th quarter worth approximately $73,000. Finally, Osbon Capital Management LLC bought a new position in shares of Duolingo during the 4th quarter valued at approximately $84,000. 91.59% of the stock is currently owned by institutional investors.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Shares recovered after finding support near the 80-day moving average below the $140 level. Technical analysts describe the current setup as historically bullish, suggesting the pullback may be nearing a potential reversal. Don’t Skip This Historically Bullish Duolingo Stock Setup
• Positive Sentiment: DA Davidson reaffirmed its “buy” rating and assigned a $175 price target, implying substantial upside from recent trading levels. The endorsement provides support after DUOL’s recent decline.
• Positive Sentiment: Indonesia is emerging as one of Duolingo’s fastest-growing markets, strengthening the international expansion narrative and potentially supporting future user and subscription growth. Duolingo sees rapid Indonesia growth
• Positive Sentiment: A bullish investment analysis argues that Duolingo’s proprietary user data, testing infrastructure and AI-powered personalization create a competitive moat. AI may also reduce content costs and enable expansion into additional education categories. Duolingo Is Much Cheaper And Defensible Than Most Investors Think
• Neutral Sentiment: Duolingo recently exceeded quarterly earnings and revenue expectations, with revenue up 18.3% year over year, although earnings declined from the prior-year quarter. The mixed results remain an important backdrop for valuation.
• Negative Sentiment: CEO Luis von Ahn sold 46,682 shares worth approximately $7.0 million, reducing his direct ownership by half. The sale occurred under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal. Duolingo CEO sells shares
• Negative Sentiment: The stock recently fell sharply and remains below its 50-day moving average. The broader decline and a consensus “Hold” rating show that investors remain cautious despite the rebound setup.

About Duolingo

Duolingo, Inc develops digital learning products designed to make education accessible through mobile devices and the web. Its primary product is the Duolingo language-learning platform, which offers courses in numerous languages through interactive, game-like lessons, practice exercises and personalized learning features.

The company also provides the Duolingo English Test, an online English-proficiency assessment used by educational institutions and other organizations. In addition, Duolingo has expanded beyond language learning with products such as Duolingo Math and Duolingo Music, while offering premium subscription features through plans including Super Duolingo and Duolingo Max.

Duolingo serves users internationally, with its applications and online services available across a broad range of geographies.