California State Teachers Retirement System increased its position in Duolingo, Inc. (NASDAQ:DUOL – Free Report) by 22.6% during the 1st quarter, HoldingsChannel.com reports. The fund owned 41,720 shares of the company’s stock after buying an additional 7,700 shares during the period. California State Teachers Retirement System’s holdings in Duolingo were worth $4,112,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors and hedge funds have also recently bought and sold shares of the company. Meiji Yasuda Asset Management Co Ltd. boosted its holdings in Duolingo by 3.5% in the 2nd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 940 shares of the company’s stock worth $385,000 after buying an additional 32 shares during the period. Evergreen Capital Management LLC raised its holdings in Duolingo by 5.0% during the 2nd quarter. Evergreen Capital Management LLC now owns 818 shares of the company’s stock valued at $335,000 after acquiring an additional 39 shares during the period. Public Employees Retirement System of Ohio raised its holdings in Duolingo by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 11,740 shares of the company’s stock valued at $3,778,000 after acquiring an additional 73 shares during the period. Northwestern Mutual Investment Management Company LLC lifted its position in shares of Duolingo by 1.2% during the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 8,953 shares of the company’s stock worth $1,571,000 after acquiring an additional 105 shares in the last quarter. Finally, Diversify Wealth Management LLC lifted its position in shares of Duolingo by 3.7% during the fourth quarter. Diversify Wealth Management LLC now owns 3,139 shares of the company’s stock worth $520,000 after acquiring an additional 111 shares in the last quarter. Institutional investors and hedge funds own 91.59% of the company’s stock.
Insider Buying and Selling
In other Duolingo news, insider Robert Meese sold 1,420 shares of Duolingo stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $112.16, for a total transaction of $159,267.20. Following the completion of the sale, the insider owned 170,745 shares of the company’s stock, valued at $19,150,759.20. The trade was a 0.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 dated Monday, May 18th. The shares were 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 in the company, valued at $19,696,619.59. This trade represents a 1.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 ninety days, insiders sold 9,506 shares of company stock worth $1,073,864. Corporate insiders own 16.62% of the company’s stock.
Duolingo Trading Up 6.8%
Duolingo (NASDAQ:DUOL – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 EPS for the quarter, topping analysts’ consensus estimates of $0.60 by $0.06. The business had revenue of $298.45 million during the quarter, compared to analysts’ expectations 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 in the previous year, the company earned $0.91 EPS. Sell-side analysts forecast that Duolingo, Inc. will post 2.76 earnings per share for the current fiscal year.
Key Stories Impacting 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
Wall Street Analyst Weigh In
Several equities analysts have recently weighed in on the company. JPMorgan Chase & Co. lifted their price target on Duolingo from $94.00 to $125.00 and gave the company a “neutral” rating in a research report on Friday, July 17th. Morgan Stanley increased their price target on shares of Duolingo from $95.00 to $125.00 and gave the stock an “equal weight” rating in a report on Thursday, July 16th. UBS Group raised their price objective on shares of Duolingo from $125.00 to $150.00 and gave the company a “buy” rating in a research report on Thursday. KeyCorp reaffirmed a “sector weight” rating on shares of Duolingo in a report on Thursday, June 4th. Finally, Weiss Ratings upgraded shares of Duolingo from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, June 18th. Three analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Duolingo currently has an average rating of “Hold” and an average price target of $148.12.
View Our Latest Report on Duolingo
Duolingo 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.
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