Bank of America Reaffirms “Neutral” Rating for Duolingo (NASDAQ:DUOL)

Duolingo (NASDAQ:DUOL)‘s stock had its “neutral” rating restated by stock analysts at Bank of America in a research report issued to clients and investors on Friday, Marketbeat Ratings reports. They currently have a $100.00 target price on the stock. Bank of America‘s price target suggests a potential downside of 0.57% from the company’s current price.

A number of other equities analysts have also recently commented on DUOL. Wells Fargo & Company dropped their price objective on shares of Duolingo from $185.00 to $160.00 and set an “underweight” rating for the company in a research note on Thursday, January 8th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $95.00 price objective (down from $200.00) on shares of Duolingo in a report on Friday. Truist Financial set a $245.00 price objective on Duolingo in a report on Thursday, January 15th. BMO Capital Markets raised Duolingo to a “buy” rating in a research note on Monday, January 12th. Finally, Barclays dropped their target price on shares of Duolingo from $390.00 to $230.00 and set an “equal weight” rating for the company in a report on Thursday, November 6th. Six equities research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $232.37.

Duolingo Stock Down 14.4%

DUOL stock traded down $16.88 during midday trading on Friday, hitting $100.57. The company’s stock had a trading volume of 11,705,641 shares, compared to its average volume of 2,740,705. The company has a market cap of $4.65 billion, a PE ratio of 12.73, a P/E/G ratio of 0.60 and a beta of 0.86. The company has a current ratio of 2.82, a quick ratio of 2.82 and a debt-to-equity ratio of 0.07. The firm’s 50-day moving average is $146.18 and its 200-day moving average is $226.19. Duolingo has a 12 month low of $91.99 and a 12 month high of $544.93.

Insider Buying and Selling

In related news, insider Robert Meese sold 1,000 shares of the business’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $110.06, for a total transaction of $110,060.00. Following the completion of the transaction, the insider directly owned 122,636 shares of the company’s stock, 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 through this hyperlink. Also, General Counsel Stephen C. Chen sold 1,901 shares of the company’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $113.26, for a total value of $215,307.26. Following the sale, the general counsel owned 30,545 shares in the company, valued at approximately $3,459,526.70. This trade represents a 5.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 14,939 shares of company stock valued at $1,676,291. 15.67% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Duolingo

A number of hedge funds and other institutional investors have recently modified their holdings of DUOL. Baillie Gifford & Co. grew its stake in shares of Duolingo by 71.9% during the fourth quarter. Baillie Gifford & Co. now owns 4,861,445 shares of the company’s stock worth $853,184,000 after purchasing an additional 2,033,611 shares in the last quarter. Vanguard Group Inc. lifted its stake in Duolingo by 3.3% in the second quarter. Vanguard Group Inc. now owns 3,647,951 shares of the company’s stock valued at $1,495,733,000 after buying an additional 116,135 shares during the last quarter. Capital World Investors lifted its stake in Duolingo by 0.5% in the fourth quarter. Capital World Investors now owns 2,241,378 shares of the company’s stock valued at $393,362,000 after buying an additional 11,140 shares during the last quarter. Dragoneer Investment Group LLC boosted its holdings in shares of Duolingo by 324.4% in the third quarter. Dragoneer Investment Group LLC now owns 1,580,787 shares of the company’s stock valued at $508,760,000 after acquiring an additional 1,208,346 shares during the period. Finally, State Street Corp grew its position in shares of Duolingo by 0.5% during the second quarter. State Street Corp now owns 1,164,387 shares of the company’s stock worth $477,422,000 after acquiring an additional 6,109 shares during the last quarter. 91.59% of the stock is currently owned by institutional investors and hedge funds.

Duolingo News Roundup

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q4 beat on both revenue and EPS; record user metrics and >$1B bookings demonstrate underlying demand. Duolingo Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Some analysts kept neutral/inline ratings (Scotiabank, Citigroup, Morgan Stanley, Evercore) and Needham still has a buy at a reduced target — signaling mixed views among sell-side firms. Analyst Notes (Evercore/TickerReport)
• Negative Sentiment: Management guided to softer bookings and slower revenue growth for 2026 as it sacrifices near-term monetization to chase 100M daily active users by 2028 — the change in priorities is the main driver of the sell-off. Duolingo prioritizes user growth over monetization, forecasts softer bookings (Reuters)
• Negative Sentiment: Major price-target cuts and downgrades (notably JPMorgan slashed its target from $200 to $95) intensified selling as analysts re-price the stock around slower near-term growth. Analyst Coverage Changes (Benzinga)
• Negative Sentiment: Regulatory and sentiment risks rose: Johnson Fistel launched an investor investigation and short interest has risen materially, which can amplify downside volatility. Johnson Fistel Investigation Notice (GlobeNewswire)

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.