Duolingo (NASDAQ:DUOL) Given New $85.00 Price Target at DA Davidson

Duolingo (NASDAQ:DUOL) had its price objective trimmed by DA Davidson from $170.00 to $85.00 in a research note issued to investors on Friday morning,Benzinga reports. The firm currently has a neutral rating on the stock.

DUOL has been the subject of a number of other research reports. Barclays decreased their price objective 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. Morgan Stanley restated an “equal weight” rating and issued a $100.00 price target (down from $245.00) on shares of Duolingo in a research report on Friday. Bank of America reaffirmed a “neutral” rating and set a $100.00 price objective on shares of Duolingo in a research report on Friday. Evercore reissued a “hold” rating and issued a $114.00 target price on shares of Duolingo in a report on Friday. Finally, Needham & Company LLC decreased their target price on Duolingo from $300.00 to $145.00 and set a “buy” rating for the company in a research note on Friday. Five investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Duolingo has an average rating of “Hold” and a consensus target price of $220.26.

Duolingo Stock Down 14.0%

NASDAQ:DUOL traded down $16.45 during mid-day trading on Friday, reaching $101.00. The stock had a trading volume of 20,096,588 shares, compared to its average volume of 2,830,754. The company has a market capitalization of $4.67 billion, a price-to-earnings ratio of 12.80, a price-to-earnings-growth ratio of 0.63 and a beta of 0.86. Duolingo has a 1-year low of $91.99 and a 1-year high of $544.93. The stock’s 50 day simple moving average is $144.48 and its two-hundred day simple moving average is $224.53. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.82 and a quick ratio of 2.82.

Duolingo (NASDAQ:DUOL) last announced its quarterly earnings data on Thursday, February 26th. The company reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.12. The firm had revenue of $282.87 million for the quarter, compared to analysts’ expectations of $275.95 million. Duolingo had a return on equity of 14.02% and a net margin of 40.03%.The company’s revenue was up 35.0% compared to the same quarter last year. Equities analysts anticipate that Duolingo will post 2.03 EPS for the current year.

Insider Activity

In other news, CFO Matthew Skaruppa sold 3,986 shares of Duolingo stock in a transaction that occurred on Wednesday, February 18th. The stock was 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 of the company’s stock, valued at approximately $3,590,751.12. The trade was a 11.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Natalie Glance sold 3,545 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The stock was 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 represents a 2.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 14,939 shares of company stock valued at $1,676,291. 15.67% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. EFG International AG bought a new stake in Duolingo during the fourth quarter worth approximately $26,000. Atlantic Union Bankshares Corp acquired a new position in shares of Duolingo during the 3rd quarter valued at $32,000. AlphaCentric Advisors LLC acquired a new position in shares of Duolingo during the 4th quarter valued at $33,000. Emerald Mutual Fund Advisers Trust bought a new stake in shares of Duolingo in the 2nd quarter worth $40,000. Finally, Farther Finance Advisors LLC lifted its holdings in shares of Duolingo by 82.2% in 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 period. Institutional investors and hedge funds own 91.59% of the company’s stock.

More Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q4 results beat estimates — revenue and EPS topped expectations and the company reported strong margin metrics. Earnings Report
• Positive Sentiment: User scale: Duolingo closed 2025 with >50M daily active users and topped $1B in bookings — evidence of continued product adoption. Shareholder Letter
• Positive Sentiment: Strong full-year profitability: reports note roughly $400M profit for 2025, underlining unit economics at scale. Profit Article
• Neutral Sentiment: Management is explicitly shifting to prioritize user growth over near-term monetization, saying bookings and revenue growth will slow as they aim for 100M DAUs by 2028. Reuters Strategy Piece
• Neutral Sentiment: Management set explicit DAU growth targets and framed short-term profitability trade-offs as part of a longer-term expansion plan. Seeking Alpha
• Negative Sentiment: Guidance disappointment: FY‑2026 and Q1 2026 revenue/bookings guidance came in below Street expectations, triggering sharp intraday selling. Guidance/Miss Report
• Negative Sentiment: Analyst downgrades and price-target cuts accelerated the sell-off (multiple firms cut targets and/or ratings after the call). Analyst Moves
• Negative Sentiment: Regulatory/litigation risk: investor law firms have launched probes into DUOL, increasing uncertainty and potential legal overhang. Investigation Alert
• Negative Sentiment: High-volume selling and negative press amplified moves — multiple outlets flagged a steep intraday decline and described investor concern over the strategy shift. Barron’s

About Duolingo

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.