JPMorgan Chase & Co. Reiterates Neutral Rating for Duolingo (NASDAQ:DUOL)

Duolingo (NASDAQ:DUOL)‘s stock had its “neutral” rating reissued by equities research analysts at JPMorgan Chase & Co. in a report released on Friday, MarketBeat.com reports. They currently have a $95.00 price objective on the stock, down from their previous price objective of $200.00. JPMorgan Chase & Co.‘s price objective would indicate a potential downside of 19.11% from the stock’s previous close.

DUOL has been the subject of several other research reports. KeyCorp lowered Duolingo from an “overweight” rating to a “sector weight” rating in a report on Thursday, November 6th. Jefferies Financial Group boosted their price target on shares of Duolingo from $210.00 to $220.00 and gave the company a “hold” rating in a research report on Thursday, December 11th. Barclays dropped their target price on Duolingo from $390.00 to $230.00 and set an “equal weight” rating on the stock in a research report on Thursday, November 6th. BMO Capital Markets raised Duolingo to a “buy” rating in a report on Monday, January 12th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Duolingo in a research report on Monday, December 29th. Seven equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $240.26.

Duolingo Stock Performance

NASDAQ DUOL opened at $117.45 on Friday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.82 and a current ratio of 2.82. The company has a market capitalization of $5.43 billion, a PE ratio of 14.89, a price-to-earnings-growth ratio of 0.60 and a beta of 0.86. Duolingo has a 52-week low of $104.51 and a 52-week high of $544.93. The company has a 50-day simple moving average of $146.18 and a 200 day simple moving average of $226.19.

Insider Transactions at Duolingo

In other Duolingo news, CFO Matthew Skaruppa sold 3,986 shares of the company’s stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $113.52, for a total value of $452,490.72. Following the completion of the sale, the chief financial officer owned 31,631 shares of the company’s stock, valued at $3,590,751.12. This represents a 11.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Natalie Glance sold 3,545 shares of Duolingo stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $113.51, for a total transaction of $402,392.95. Following the completion of the transaction, the insider owned 115,380 shares in the company, valued at approximately $13,096,783.80. The trade was a 2.98% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 14,939 shares of company stock worth $1,676,291. Company insiders own 15.67% of the company’s stock.

Hedge Funds Weigh In On Duolingo

A number of institutional investors have recently bought and sold shares of DUOL. Emerald Mutual Fund Advisers Trust bought a new position in shares of Duolingo in the 2nd quarter worth about $40,000. Atlantic Union Bankshares Corp bought a new stake in Duolingo during the third quarter worth about $32,000. Farther Finance Advisors LLC grew its holdings in Duolingo by 82.2% in the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock worth $43,000 after purchasing an additional 60 shares during the period. KERR FINANCIAL PLANNING Corp purchased a new position in shares of Duolingo during the third quarter valued at approximately $47,000. Finally, EFG International AG bought a new stake in shares of Duolingo in the 4th quarter worth approximately $26,000. 91.59% of the stock is owned by institutional investors.

Trending Headlines about Duolingo

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.