Morgan Stanley Reiterates “Equal Weight” Rating for Duolingo (NASDAQ:DUOL)

Duolingo (NASDAQ:DUOL)‘s stock had its “equal weight” rating restated by Morgan Stanley in a research note issued on Friday,Benzinga reports. They currently have a $100.00 price target on the stock, down from their previous price target of $245.00. Morgan Stanley’s target price would suggest a potential downside of 14.86% from the stock’s previous close.

A number of other equities analysts have also recently weighed in on the stock. The Goldman Sachs Group lowered their price objective on shares of Duolingo from $425.00 to $250.00 and set a “neutral” rating for the company in a research report on Friday, November 7th. Bank of America upgraded Duolingo from a “neutral” rating to a “buy” rating and cut their price objective for the company from $301.00 to $250.00 in a report on Monday, January 5th. DA Davidson dropped their target price on Duolingo from $205.00 to $170.00 and set a “neutral” rating for the company in a research report on Tuesday, January 27th. Citigroup reiterated a “market perform” rating on shares of Duolingo in a research note on Monday, January 12th. Finally, Citizens Jmp lowered shares of Duolingo from a “market outperform” rating to a “hold” rating in a research note on Thursday, November 6th. Ten analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $276.58.

Duolingo Trading Up 5.2%

NASDAQ DUOL opened at $117.45 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.82 and a quick ratio of 2.82. The stock has a market capitalization of $5.43 billion, a P/E ratio of 14.89, a PEG ratio of 0.60 and a beta of 0.86. The firm’s 50-day moving average is $146.18 and its two-hundred day moving average is $226.19. Duolingo has a 12 month low of $104.51 and a 12 month high of $544.93.

Insider Activity

In related news, insider Natalie Glance sold 3,545 shares of the stock in a transaction 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 $13,096,783.80. This represents a 2.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Robert Meese sold 1,000 shares of Duolingo stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $110.06, for a total value of $110,060.00. Following the sale, the insider directly owned 122,636 shares of the company’s stock, valued at $13,497,318.16. This trade represents a 0.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 14,939 shares of company stock worth $1,676,291. 15.67% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Duolingo

Several hedge funds have recently added to or reduced their stakes in DUOL. NewEdge Advisors LLC raised its holdings in Duolingo by 1,868.2% during the first quarter. NewEdge Advisors LLC now owns 433 shares of the company’s stock worth $134,000 after purchasing an additional 411 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in Duolingo by 123.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 87,556 shares of the company’s stock worth $27,190,000 after acquiring an additional 48,451 shares in the last quarter. Focus Partners Wealth raised its stake in Duolingo by 28.3% during the 1st quarter. Focus Partners Wealth now owns 2,021 shares of the company’s stock worth $628,000 after acquiring an additional 446 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. purchased a new stake in Duolingo in the second quarter valued at $865,000. Finally, Oppenheimer Asset Management Inc. acquired a new position in Duolingo in the second quarter valued at $437,000. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

More Duolingo News

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.