The Goldman Sachs Group Cuts Duolingo (NASDAQ:DUOL) Price Target to $105.00

Duolingo (NASDAQ:DUOL) had its price target reduced by The Goldman Sachs Group from $250.00 to $105.00 in a research report report published on Monday,Benzinga reports. They currently have a neutral rating on the stock.

A number of other equities analysts also recently issued reports on the company. Morgan Stanley reaffirmed an “equal weight” rating and set a $100.00 price target (down from $245.00) on shares of Duolingo in a research report on Friday, February 27th. Jefferies Financial Group upped their target price on Duolingo from $210.00 to $220.00 and gave the company a “hold” rating in a research report on Thursday, December 11th. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $95.00 price target (down from $200.00) on shares of Duolingo in a report on Friday, February 27th. DA Davidson lowered their target price on shares of Duolingo from $170.00 to $85.00 and set a “neutral” rating for the company in a research note on Friday, February 27th. Finally, BMO Capital Markets upgraded shares of Duolingo to a “buy” rating in a research note on Monday, January 12th. Five analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $206.32.

Duolingo Stock Performance

DUOL stock opened at $96.17 on Monday. Duolingo has a one year low of $91.99 and a one year high of $544.93. The firm has a market cap of $4.45 billion, a price-to-earnings ratio of 11.29, a PEG ratio of 0.70 and a beta of 0.90. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.82 and a current ratio of 2.61. The firm has a 50-day simple moving average of $139.55 and a two-hundred day simple moving average of $219.04.

Duolingo (NASDAQ:DUOL) last issued its quarterly earnings data on Thursday, February 26th. The company reported $0.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.12. Duolingo had a net margin of 39.91% and a return on equity of 14.88%. The firm had revenue of $282.87 million for the quarter, compared to the consensus estimate of $275.95 million. The business’s revenue was up 35.0% on a year-over-year basis. On average, equities analysts forecast that Duolingo will post 2.03 EPS for the current fiscal year.

Insider Activity

In related news, insider Robert Meese sold 1,000 shares of the business’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $110.06, for a total value of $110,060.00. Following the completion of the transaction, the insider directly owned 122,636 shares in the company, valued at $13,497,318.16. The trade was a 0.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Matthew Skaruppa sold 3,986 shares of the firm’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $113.52, for a total transaction of $452,490.72. Following the sale, the chief financial officer owned 31,631 shares in the company, valued at approximately $3,590,751.12. This represents a 11.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 14,939 shares of company stock valued at $1,676,291 over the last 90 days. Company insiders own 15.67% of the company’s stock.

Hedge Funds Weigh In On Duolingo

Several institutional investors and hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd purchased a new position in Duolingo during the fourth quarter worth approximately $73,000. Virtu Financial LLC acquired a new stake in Duolingo in the 4th quarter valued at $4,282,000. Alpine Woods Capital Investors LLC purchased a new stake in Duolingo in the 4th quarter worth $333,000. Vident Advisory LLC lifted its holdings in Duolingo by 5.8% during the fourth quarter. Vident Advisory LLC now owns 2,647 shares of the company’s stock valued at $465,000 after purchasing an additional 145 shares in the last quarter. Finally, Cim LLC grew its position in shares of Duolingo by 6.0% in the fourth quarter. Cim LLC now owns 4,390 shares of the company’s stock valued at $770,000 after purchasing an additional 248 shares during the period. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Trending Headlines about Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Director James H. Shelton bought 5,000 shares (increasing his stake ~108%), a signal of insider confidence that can support the share price. SEC Form 4
• Positive Sentiment: Duolingo previously announced a US$400M buyback to back growth/AI investments — reduces float and provides capital support, a concrete near-term positive for shareholders. Duolingo Backs User Growth And AI With US$400m Buyback Plan
• Neutral Sentiment: Analysts/coverage highlight FY2026 as a transition year: management is prioritizing free-user engagement and DAU growth (target 100M DAUs by 2028) which could depress near-term monetization and earnings but potentially enable longer-term growth. Mixed implications for valuation. Duolingo: FY2026 Will Be A Year Of Transition, Doubling Daily Active Users By 2028
• Neutral Sentiment: Short-interest data in recent reporting appears inconsistent/insignificant (reported zeros), so current short-squeeze dynamics are unclear and unlikely to explain today’s move. (Data noise limits inference.)
• Negative Sentiment: Zacks downgraded DUOL from “hold” to “strong sell,” which can trigger selling pressure from retail and model-driven funds. Zacks Research
• Negative Sentiment: Two law firms (Pomerantz; Faruqi & Faruqi) announced investigations/possible litigation on behalf of Duolingo investors, increasing legal overhang and uncertainty. Pomerantz Investigation Faruqi & Faruqi Investigation
• Negative Sentiment: Critical media pieces argue the stock’s collapse reflects deeper issues (slowing growth, strategy shift toward DAUs over near-term monetization), keeping bearish sentiment high. Inc: Duolingo Stock Is Falling Off a Cliff Seeking Alpha: The 80% Drop Doesn’t Make It Cheap
• Negative Sentiment: Competitive risk: reports that Google launched a new language-learning tool add pressure to user acquisition and monetization assumptions. Goodbye Duolingo: Google has just launched a new language learning tool

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.