Duolingo (NASDAQ:DUOL) Trading Up 3.7% – Time to Buy?

Shares of Duolingo, Inc. (NASDAQ:DUOL) shot up 3.7% on Thursday . The stock traded as high as $141.52 and last traded at $144.3390. 78,034 shares traded hands during trading, a decline of 96% from the average daily volume of 1,926,415 shares. The stock had previously closed at $139.24.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo reportedly retains 68% of users, a level highlighted as stronger than retention at popular mobile games such as Candy Crush and Royal Match. The comparison reinforces the platform’s engagement and could support the company’s subscription growth story. Duolingo user retention article
• Positive Sentiment: Duolingo received widespread free publicity after Apple introduced a foldable phone called the “iPhone Duo.” The company’s humorous social-media response, including exchanges with Samsung, generated substantial meme coverage and may increase brand awareness and engagement, although no immediate financial benefit was quantified. iPhone Duo memes article
• Positive Sentiment: A new Duolingo clothing line tied to language and pronunciation is expanding the brand beyond its core learning app. The initiative could create additional marketing reach and potential merchandise revenue, though its financial impact remains uncertain. Duolingo clothing line article
• Neutral Sentiment: Director William Gordon sold 10,000 shares for approximately $1.46 million, reducing his position by 12.75%. Because the transaction was conducted under a pre-arranged Rule 10b5-1 plan, it is a limited discretionary signal, but it may still weigh modestly on sentiment. SEC insider transaction filing
• Negative Sentiment: A widely circulated CEO account claiming ChatGPT taught him Spanish more effectively than Duolingo highlights the competitive threat from AI language-learning tools. Although anecdotal, the commentary could raise concerns about Duolingo’s long-term differentiation and weigh on the stock. ChatGPT language-learning article

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on DUOL shares. Scotiabank set a $120.00 target price on shares of Duolingo in a report on Thursday, August 6th. Barclays increased their price target on shares of Duolingo from $110.00 to $115.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 6th. Jefferies Financial Group boosted their price objective on shares of Duolingo from $95.00 to $125.00 and gave the company a “hold” rating in a research note on Tuesday, July 14th. Citigroup raised shares of Duolingo from a “hold” rating to a “buy” rating in a research note on Tuesday, August 18th. Finally, Susquehanna initiated coverage on Duolingo in a report on Tuesday, August 18th. They set a “positive” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Duolingo currently has a consensus rating of “Hold” and an average target price of $124.38.

Duolingo Stock Down 1.0%

The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.72 and a current ratio of 2.72. The firm has a market cap of $6.72 billion, a PE ratio of 17.02, a PEG ratio of 1.19 and a beta of 0.89. The stock has a fifty day moving average price of $137.76 and a 200-day moving average price of $118.02.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 EPS for the quarter, beating the consensus estimate of $0.60 by $0.06. The firm had revenue of $298.45 million for the quarter, compared to analyst estimates of $295.58 million. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. Duolingo’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.91 earnings per share. Research analysts expect that Duolingo, Inc. will post 2.62 EPS for the current year.

Insider Buying and Selling at Duolingo

In related news, insider Robert Meese sold 1,354 shares of Duolingo stock in a transaction on Monday, August 17th. The shares were sold at an average price of $129.13, for a total transaction of $174,842.02. Following the transaction, the insider owned 169,391 shares in the company, valued at approximately $21,873,459.83. The trade was a 0.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director William Gordon sold 10,000 shares of Duolingo stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $145.67, for a total transaction of $1,456,700.00. Following the transaction, the director owned 68,415 shares in the company, valued at $9,966,013.05. The trade was a 12.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 16,668 shares of company stock worth $2,331,082. 16.62% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Duolingo

Several institutional investors and hedge funds have recently modified their holdings of the stock. Root Financial Partners LLC raised its holdings in shares of Duolingo by 194.1% during the 1st quarter. Root Financial Partners LLC now owns 250 shares of the company’s stock valued at $25,000 after buying an additional 165 shares during the period. EFG International AG purchased a new position in Duolingo in the 4th quarter worth approximately $26,000. AlphaCentric Advisors LLC acquired a new stake in Duolingo in the fourth quarter valued at approximately $33,000. Banque Cantonale Vaudoise grew its position in Duolingo by 51.1% in the first quarter. Banque Cantonale Vaudoise now owns 340 shares of the company’s stock valued at $34,000 after acquiring an additional 115 shares in the last quarter. Finally, FNY Investment Advisers LLC purchased a new stake in shares of Duolingo during the second quarter valued at approximately $34,000. Hedge funds and other institutional investors own 91.59% of the company’s stock.

About Duolingo

Duolingo, Inc develops digital learning products designed to make education accessible through mobile devices and the web. Its primary product is the Duolingo language-learning platform, which offers courses in numerous languages through interactive, game-like lessons, practice exercises and personalized learning features.

The company also provides the Duolingo English Test, an online English-proficiency assessment used by educational institutions and other organizations. In addition, Duolingo has expanded beyond language learning with products such as Duolingo Math and Duolingo Music, while offering premium subscription features through plans including Super Duolingo and Duolingo Max.

Duolingo serves users internationally, with its applications and online services available across a broad range of geographies.