Duolingo, Inc. (NASDAQ:DUOL) Short Interest Up 26.5% in February

Duolingo, Inc. (NASDAQ:DUOL) was the recipient of a large growth in short interest in the month of February. As of February 13th, there was short interest totaling 8,729,424 shares, a growth of 26.5% from the January 29th total of 6,902,698 shares. Based on an average daily volume of 3,146,213 shares, the short-interest ratio is currently 2.8 days. Approximately 23.1% of the shares of the company are sold short. Approximately 23.1% of the shares of the company are sold short. Based on an average daily volume of 3,146,213 shares, the short-interest ratio is currently 2.8 days.

Duolingo Trading Down 0.2%

Duolingo stock opened at $100.82 on Tuesday. Duolingo has a 1 year low of $91.99 and a 1 year high of $544.93. The firm’s 50 day moving average price is $142.79 and its 200-day moving average price is $221.49. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.61 and a quick ratio of 2.82. The stock has a market cap of $4.66 billion, a P/E ratio of 11.83, a PEG ratio of 0.54 and a beta of 0.86.

Duolingo (NASDAQ:DUOL) last posted its earnings results on Thursday, February 26th. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.12. The company had revenue of $282.87 million during the quarter, compared to analysts’ expectations of $275.95 million. Duolingo had a net margin of 39.91% and a return on equity of 14.88%. The firm’s revenue was up 35.0% compared to the same quarter last year. On average, equities analysts predict that Duolingo will post 2.03 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

DUOL has been the topic of several analyst reports. Scotiabank reiterated a “sector perform” rating and set a $100.00 target price (down from $300.00) on shares of Duolingo in a research report on Friday. Barclays lowered their price objective on Duolingo from $230.00 to $110.00 and set an “equal weight” rating on the stock in a research report on Monday. Evercore reissued a “hold” rating and issued a $114.00 target price on shares of Duolingo in a report on Friday. The Goldman Sachs Group lowered their price target on shares of Duolingo from $250.00 to $105.00 and set a “neutral” rating on the stock in a report on Monday. Finally, JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $95.00 price target (down from $200.00) on shares of Duolingo in a research report on Friday. Five research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $206.32.

Key Stories Impacting Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q4 financials remain a strength — Duolingo reported an earnings and revenue beat last quarter with strong margins and double?digit revenue growth, supporting a longer?term profitability story. (Company results referenced from recent filings and earnings call)
• Neutral Sentiment: Investor attention is elevated — several media outlets and screeners highlight increased retail/institutional interest in DUOL, which can increase volatility but doesn’t resolve the analyst sentiment shift. Zacks: Duolingo Attention
• Neutral Sentiment: Short?interest data appears to show no meaningful change (reported 0 shares / data anomaly), so today’s move is not being driven by a sudden jump in shorting. (Data note: likely reporting artifact)
• Negative Sentiment: Goldman Sachs cut its price target sharply from $250 to $105 and moved to Neutral — a headline downgrade that directly pressures sentiment. Benzinga: Goldman Sachs Cuts PT
• Negative Sentiment: Barclays lowered its target from $230 to $110 and set an Equal?Weight rating — another major shop dialing back expectations. Benzinga: Barclays Lowers PT
• Negative Sentiment: Additional cuts and reiterations to Hold/Neutral from multiple firms (DA Davidson cut to $85; Needham trimmed PT; Truist, Bank of America, Citigroup, Morgan Stanley, JPMorgan, Evercore and Scotiabank issued hold/neutral stances), amplifying downside pressure. ABN: DA Davidson PT Cut ABN: Shares Gap Down
• Negative Sentiment: Critical analysis questioning user growth and freemium conversion trends — Seeking Alpha and other pieces warn that DAU/MAU deceleration and structural AI risks could compress growth and margins, weakening the growth story that supported higher valuations. Seeking Alpha: Avoid

Insider Buying and Selling at Duolingo

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

Institutional Trading of Duolingo

A number of large investors have recently added to or reduced their stakes in DUOL. Virtu Financial LLC purchased a new position in shares of Duolingo in the fourth quarter valued at $4,282,000. Alpine Woods Capital Investors LLC purchased a new position in shares of Duolingo in the 4th quarter worth $333,000. Vident Advisory LLC grew its stake in shares of Duolingo by 5.8% in the 4th quarter. Vident Advisory LLC now owns 2,647 shares of the company’s stock worth $465,000 after buying an additional 145 shares in the last quarter. Cim LLC increased its holdings in shares of Duolingo by 6.0% in the 4th quarter. Cim LLC now owns 4,390 shares of the company’s stock worth $770,000 after buying an additional 248 shares during the last quarter. Finally, Empowered Funds LLC purchased a new stake in shares of Duolingo during the 4th quarter valued at about $331,000. Institutional investors own 91.59% of the company’s stock.

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.