Duolingo (NASDAQ:DUOL) Now Covered by Analysts at Truist Financial

Equities researchers at Truist Financial started coverage on shares of Duolingo (NASDAQ:DUOL) in a report issued on Tuesday. The brokerage set a “buy” rating and a $245.00 price target on the stock. Truist Financial’s target price points to a potential upside of 32.33% from the company’s previous close.

Other equities analysts have also recently issued reports about the company. The Goldman Sachs Group lowered their price target on Duolingo from $425.00 to $250.00 and set a “neutral” rating for the company in a report on Friday, November 7th. Citizens Jmp cut shares of Duolingo from a “market outperform” rating to a “hold” rating in a research report on Thursday, November 6th. Bank of America raised shares of Duolingo from a “neutral” rating to a “buy” rating and reduced their price target for the company from $301.00 to $250.00 in a research note on Monday. Scotiabank lowered their price objective on shares of Duolingo from $600.00 to $300.00 and set a “sector outperform” rating for the company in a research report on Thursday, November 6th. Finally, UBS Group set a $250.00 target price on Duolingo in a research report on Monday. Twelve equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $311.25.

Duolingo Stock Up 4.9%

Shares of NASDAQ DUOL opened at $185.15 on Tuesday. The company has a market capitalization of $8.56 billion, a P/E ratio of 23.47, a P/E/G ratio of 0.90 and a beta of 0.87. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.82 and a quick ratio of 2.82. The company has a 50 day simple moving average of $197.39 and a 200-day simple moving average of $289.08. Duolingo has a 1 year low of $166.27 and a 1 year high of $544.93.

Duolingo (NASDAQ:DUOL) last released its quarterly earnings data on Wednesday, November 5th. The company reported $5.95 EPS for the quarter, beating analysts’ consensus estimates of $0.72 by $5.23. The firm had revenue of $271.71 million for the quarter, compared to analysts’ expectations of $260.14 million. Duolingo had a return on equity of 14.02% and a net margin of 40.03%.The firm’s quarterly revenue was up 41.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.49 earnings per share. On average, equities research analysts predict that Duolingo will post 2.03 earnings per share for the current year.

Insider Buying and Selling at Duolingo

In other news, General Counsel Stephen C. Chen sold 1,514 shares of the business’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $175.87, for a total transaction of $266,267.18. Following the completion of the sale, the general counsel owned 31,542 shares in the company, valued at approximately $5,547,291.54. The trade was a 4.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Matthew Skaruppa sold 3,059 shares of the stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $175.76, for a total transaction of $537,649.84. Following the completion of the transaction, the chief financial officer directly owned 37,487 shares in the company, valued at $6,588,715.12. This trade represents a 7.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 53,169 shares of company stock worth $11,605,151. 18.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Duolingo

Several large investors have recently bought and sold shares of DUOL. Kiker Wealth Management LLC purchased a new position in shares of Duolingo during the second quarter worth about $31,000. Emerald Mutual Fund Advisers Trust acquired a new stake in shares of Duolingo in the 2nd quarter valued at about $40,000. Atlantic Union Bankshares Corp purchased a new stake in shares of Duolingo in the third quarter valued at about $32,000. Farther Finance Advisors LLC boosted its holdings in shares of Duolingo by 82.2% in the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock valued at $43,000 after acquiring an additional 60 shares in the last quarter. Finally, State of Wyoming acquired a new position in shares of Duolingo during the first quarter worth about $42,000. Institutional investors and hedge funds own 91.59% of the company’s stock.

Duolingo News Roundup

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Bank of America upgraded DUOL to Buy, arguing the market underestimates Duolingo’s entertainment/gaming appeal and raising focus on a larger TAM tied to mobile-game-like engagement. Duolingo is more game than classroom, Bank of America says in Buy upgrade
• Positive Sentiment: Coverage and commentary (Benzinga/MSN) highlight the same BofA thesis and call out the note as the principal reason for the intraday surge in DUOL share demand. Duolingo Stock Jumps After Bank of America Says It’s More Than A Language App
• Positive Sentiment: Technicals: commentators flagged an “island reversal” and an analyst “change of tune,” reinforcing momentum buying following the BofA note and supporting a short-term bullish technical setup. Duolingo stock forms island reversal as key analyst changes tune
• Neutral Sentiment: Cultural coverage — e.g., a Guardian review of a book about gamification — reinforces the narrative that Duolingo’s product is part of a broader gamification trend; useful for thematic investors but not a direct near-term catalyst. The Score by C Thi Nguyen review – a brilliant warning about the gamification of everyday life
• Negative Sentiment: Risk note: coverage on Duolingo’s rapid product shifts (chess surge) and broader AI-related concerns flags potential execution and regulatory/quality risks that could pressure user engagement or costs if not managed. Investors should watch these operational risks. Should Duolingo’s Chess Surge and AI Risk Concerns Require Action From Duolingo (DUOL) Investors?

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.