Duolingo (NASDAQ:DUOL) Stock: Insider Stephen Chen Sells 3,700 Shares

Duolingo, Inc. (NASDAQ:DUOL) General Counsel Stephen Chen sold 3,700 shares of Duolingo stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $175.00, for a total value of $647,500.00. Following the completion of the sale, the general counsel directly owned 40,069 shares of the company’s stock, valued at $7,012,075. The trade was a 8.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Duolingo Stock Performance

Duolingo stock traded down $4.46 during mid-day trading on Thursday, reaching $156.81. 2,279,538 shares of the stock traded hands, compared to its average volume of 1,802,692. Duolingo, Inc. has a 12-month low of $87.89 and a 12-month high of $213.37. The business’s 50-day moving average is $144.95 and its 200-day moving average is $124.13. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. The stock has a market capitalization of $7.34 billion, a PE ratio of 51.75, a price-to-earnings-growth ratio of 1.05 and a beta of 1.08.

Duolingo (NASDAQ:DUOL) last announced its earnings results on Tuesday, November 3rd. The company reported $0.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.57 by ($0.03). The firm had revenue of $309.01 million during the quarter, compared to analysts’ expectations of $303.20 million. Duolingo had a return on equity of 10.54% and a net margin of 12.33%. The company’s revenue for the quarter was up 13.7% on a year-over-year basis. During the same period in the previous year, the business posted $5.95 earnings per share. As a group, sell-side analysts predict that Duolingo, Inc. will post 2.62 EPS for the current fiscal year.

Institutional Investors Weigh In On Duolingo

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DUOL. Childress Capital Advisors LLC lifted its holdings in Duolingo by 5.3% in the 3rd quarter. Childress Capital Advisors LLC now owns 1,925 shares of the company’s stock worth $274,000 after purchasing an additional 97 shares in the last quarter. Versant Capital Management Inc grew its holdings in Duolingo by 73.4% during the 3rd quarter. Versant Capital Management Inc now owns 267 shares of the company’s stock valued at $38,000 after buying an additional 113 shares in the last quarter. Root Financial Partners LLC raised its position in shares of Duolingo by 194.1% during the first quarter. Root Financial Partners LLC now owns 250 shares of the company’s stock valued at $25,000 after buying an additional 165 shares during the last quarter. Heritage Family Offices LLP bought a new stake in shares of Duolingo during the third quarter valued at approximately $27,000. Finally, Rathbones Group PLC lifted its holdings in shares of Duolingo by 2.9% in the first quarter. Rathbones Group PLC now owns 7,460 shares of the company’s stock worth $735,000 after buying an additional 211 shares in the last quarter. 91.59% of the stock is owned by hedge funds and other institutional investors.

Duolingo News Summary

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q3 revenue topped estimates at $309 million, while daily active users rose 29% year over year. Management also raised its outlook, supporting the case that product engagement is strengthening. Duolingo Q3 2026 results
• Neutral Sentiment: Truist raised its price target from $120 to $170 but kept a Hold rating, signaling improved expectations while stopping short of a bullish recommendation. Truist rating update
• Neutral Sentiment: The CEO discussed monetizing the platform while preserving the free-user experience, a key strategic trade-off as the company seeks to convert user growth into revenue. CEO on monetization strategy
• Negative Sentiment: Q3 earnings per share of $0.54 missed analyst expectations, and bookings growth has lagged the faster expansion in users. That gap may keep investors focused on whether Duolingo can monetize its growing audience without harming engagement. Q3 earnings details
• Negative Sentiment: Several law firms publicized a securities class action alleging misleading statements during May 2025–February 2026; the allegations have not been proven. The lead-plaintiff deadline is December 7, 2026, and continued litigation may add uncertainty. Class action announcement
• Negative Sentiment: Director William Gordon sold 10,000 shares. The sale was made under a pre-arranged Rule 10b5-1 plan, which moderates—but does not eliminate—the potential negative signal investors may infer from insider selling. Director share sale

Analysts Set New Price Targets

A number of analysts have commented on DUOL shares. Evercore set a $128.00 target price on shares of Duolingo in a report on Wednesday. Wall Street Zen upgraded shares of Duolingo from a “sell” rating to a “hold” rating in a research note on Sunday, August 16th. Truist Financial boosted their price objective on shares of Duolingo from $120.00 to $170.00 and gave the company a “hold” rating in a research report on Thursday. Susquehanna initiated coverage on Duolingo in a research note on Tuesday, August 18th. They issued a “positive” rating for the company. Finally, Argus restated a “hold” rating and issued a $146.00 price objective on shares of Duolingo in a research note on Tuesday, August 25th. Eight equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Duolingo currently has a consensus rating of “Hold” and a consensus target price of $145.62.

Duolingo Company Profile

Duolingo, Inc develops technology-based learning products designed to make education accessible and engaging. Its flagship Duolingo mobile and web platform offers gamified courses in languages including Spanish, English, French, German and Japanese, among others. Lessons incorporate interactive exercises, personalized practice and achievement-based features intended to support regular learning.

The company also operates the Duolingo English Test, an online English-proficiency assessment that can be taken remotely and is accepted by educational institutions and other organizations.