Duolingo (NASDAQ:DUOL) Earns “In-Line” Rating from Evercore

Duolingo (NASDAQ:DUOL)‘s stock had its “in-line” rating reiterated by equities research analysts at Evercore in a report released on Friday. They currently have a $114.00 price objective on the stock. Evercore’s price objective suggests a potential downside of 2.94% from the stock’s current price.

Other research analysts have also issued reports about the stock. Morgan Stanley restated an “equal weight” rating and issued a $100.00 price objective (down from $245.00) on shares of Duolingo in a report on Friday. Bank of America raised shares of Duolingo from a “neutral” rating to a “buy” rating and decreased their price target for the stock from $301.00 to $250.00 in a research note on Monday, January 5th. KeyCorp cut Duolingo from an “overweight” rating to a “sector weight” rating in a research report on Thursday, November 6th. BMO Capital Markets upgraded Duolingo to a “buy” rating in a report on Monday, January 12th. Finally, Barclays lowered their target price on Duolingo from $390.00 to $230.00 and set an “equal weight” rating for the company in a research note on Thursday, November 6th. Seven investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Duolingo has a consensus rating of “Hold” and an average target price of $240.26.

Duolingo Price Performance

Shares of Duolingo stock opened at $117.45 on Friday. The business has a 50 day moving average of $146.18 and a 200 day moving average of $226.19. Duolingo has a 52 week low of $104.51 and a 52 week high of $544.93. The company has a market cap of $5.43 billion, a PE ratio of 14.89, a P/E/G ratio of 0.60 and a beta of 0.86. The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.07.

Insider Buying and Selling

In other Duolingo news, insider Natalie Glance sold 3,545 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $113.51, for a total transaction of $402,392.95. Following the completion of the sale, the insider directly owned 115,380 shares in the company, valued at approximately $13,096,783.80. This trade represents a 2.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, General Counsel Stephen C. Chen sold 1,901 shares of Duolingo stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $113.26, for a total transaction of $215,307.26. Following the completion of the transaction, the general counsel directly owned 30,545 shares of the company’s stock, valued at $3,459,526.70. This trade represents a 5.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 14,939 shares of company stock worth $1,676,291 in the last 90 days. 15.67% of the stock is owned by company insiders.

Hedge Funds Weigh In On Duolingo

A number of hedge funds have recently added to or reduced their stakes in the company. EFG International AG bought a new position in Duolingo in the 4th quarter valued at approximately $26,000. Atlantic Union Bankshares Corp purchased a new position in shares of Duolingo in the third quarter worth $32,000. AlphaCentric Advisors LLC bought a new position in shares of Duolingo during the fourth quarter valued at $33,000. Emerald Mutual Fund Advisers Trust purchased a new stake in shares of Duolingo during the second quarter valued at $40,000. Finally, Farther Finance Advisors LLC boosted its position in shares of Duolingo by 82.2% during the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock valued at $43,000 after buying an additional 60 shares during the last quarter. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

More Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q4 beats: Duolingo reported $0.91 EPS (above $0.78 est.) and $282.9M revenue (above ~$276M est.), and said it closed 2025 with >50M DAU and >$1B in bookings — evidence of strong underlying user and profitability metrics. Press Release
• Positive Sentiment: Long-term user target: Management set a goal of ~20% DAU growth and 100M users by 2028, signaling an aggressive growth push that could expand monetization opportunities if achieved. Seeking Alpha
• Neutral Sentiment: AI and buyback discussion: Management plans increased AI investment and has discussed buyback activity; these moves aim to defend market position but raise near-term cost and valuation questions. Yahoo Finance
• Negative Sentiment: Strategy shift hits guidance: Duolingo warned FY?2026 revenue ~ $1.2B vs. consensus ~$1.3B and Q1 revenue ~$288.5M vs. ~$289.3M est., and forecast softer bookings as it prioritizes DAU growth — the weaker forward outlook spooked investors. WSJ
• Negative Sentiment: Market reaction and volatility: Coverage and headlines note a sharp share drop after the call as Wall Street reacts negatively to sacrificing near-term revenue for DAU — Barron’s calls the strategy shake?up a key reason for the stock plunge. Barron’s
• Negative Sentiment: Investor/legal risk: A law firm (Johnson Fistel) announced an investigation into potential securities claims tied to Duolingo executives, which can increase legal uncertainty and investor concern. Newsfile
• Negative Sentiment: Rising short interest: Short interest jumped in February (to ~23% of float), raising the potential for continued selling pressure and volatility. InsiderMonkey

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.