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

Duolingo (NASDAQ:DUOL)‘s stock had its “neutral” rating restated by stock analysts at JPMorgan Chase & Co. in a report released on Friday, MarketBeat Ratings reports. They presently have a $95.00 price target on the stock, down from their previous price target of $200.00. JPMorgan Chase & Co.‘s price target would suggest a potential downside of 19.11% from the stock’s current price.

DUOL has been the topic of a number of other reports. Jefferies Financial Group upped their price target on Duolingo from $210.00 to $220.00 and gave the company a “hold” rating in a report on Thursday, December 11th. Citigroup restated a “market perform” rating on shares of Duolingo in a research note on Monday, January 12th. Citizens Jmp lowered shares of Duolingo from a “market outperform” rating to a “hold” rating in a research note on Thursday, November 6th. KeyCorp cut shares of Duolingo from an “overweight” rating to a “sector weight” rating in a report on Thursday, November 6th. Finally, Bank of America upgraded shares of Duolingo from a “neutral” rating to a “buy” rating and dropped their target price for the stock from $301.00 to $250.00 in a report on Monday, January 5th. Seven equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $240.26.

Duolingo Price Performance

Shares of NASDAQ DUOL opened at $117.45 on Friday. The firm has a market cap of $5.43 billion, a P/E ratio of 14.89, a PEG ratio of 0.60 and a beta of 0.86. Duolingo has a twelve month low of $104.51 and a twelve month high of $544.93. The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.07. The company has a 50 day moving average of $146.18 and a 200 day moving average of $226.19.

Insider Buying and Selling at Duolingo

In related news, General Counsel Stephen C. Chen sold 1,901 shares of the stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $113.26, for a total value of $215,307.26. Following the completion of 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 position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Robert Meese sold 1,000 shares of the company’s stock in a transaction that occurred 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 owned 122,636 shares of the company’s stock, valued at approximately $13,497,318.16. The trade was a 0.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 14,939 shares of company stock worth $1,676,291. 15.67% of the stock is owned by insiders.

Institutional Trading of Duolingo

Several hedge funds have recently bought and sold shares of the stock. EFG International AG purchased a new position in Duolingo during the 4th quarter valued at approximately $26,000. Atlantic Union Bankshares Corp purchased a new position in shares of Duolingo in the third quarter valued at $32,000. AlphaCentric Advisors LLC bought a new stake in Duolingo in the fourth quarter worth $33,000. Emerald Mutual Fund Advisers Trust purchased a new stake in Duolingo during the second quarter valued at $40,000. Finally, Farther Finance Advisors LLC lifted its position in Duolingo by 82.2% during the third quarter. Farther Finance Advisors LLC now owns 133 shares of the company’s stock valued at $43,000 after purchasing an additional 60 shares during the last quarter. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Duolingo News Roundup

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

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.