Duolingo (NASDAQ:DUOL) Shares Gap Up Following Analyst Upgrade

Duolingo, Inc. (NASDAQ:DUOL)’s stock price gapped up before the market opened on Wednesday after Wedbush raised their price target on the stock from $150.00 to $155.00. The stock had previously closed at $128.00, but opened at $160.00. Wedbush currently has a neutral rating on the stock. Duolingo shares last traded at $168.7190, with a volume of 1,046,476 shares.

Several other research analysts have also recently issued reports on DUOL. Scotiabank set a $120.00 price target on Duolingo in a report on Thursday, August 6th. Compass Point began coverage on Duolingo in a research note on Tuesday, August 18th. They set a “buy” rating for the company. Craig Hallum lowered Duolingo to a “hold” rating in a research note on Tuesday, August 18th. Evercore set a $128.00 target price on Duolingo in a report on Wednesday. Finally, KeyCorp raised Duolingo from a “hold” rating to an “overweight” rating in a research report on Tuesday, August 18th. Eight investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $134.44.

Insiders Place Their Bets

In other news, General Counsel Stephen Chen sold 8,072 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $149.33, for a total transaction of $1,205,391.76. Following the sale, the general counsel owned 43,769 shares in the company, valued at $6,536,024.77. The trade was a 15.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Natalie Glance sold 2,751 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $129.13, for a total transaction of $355,236.63. Following the completion of the sale, the insider owned 170,650 shares of the company’s stock, valued at approximately $22,036,034.50. This trade represents a 1.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 250,740 shares of company stock valued at $37,685,893 over the last 90 days. 16.62% of the stock is owned by corporate insiders.

More Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo reported Q3 revenue of $309 million, above analyst expectations of $303 million, and said daily active user growth accelerated to 29% year over year. It also raised its outlook, including projected Q4 bookings growth of 13%; these growth and guidance signals are driving optimism. Duolingo Reports Third Quarter 2026 Results
• Positive Sentiment: Needham raised its price target to $165, a positive analyst signal that may reinforce confidence in the company’s growth prospects. Needham Raises Price Target
• Neutral Sentiment: Wells Fargo upgraded DUOL from “underweight” to “equal weight” and raised its target to $120. The rating change is an improvement, but the target is below the cited $128 share price. Wells Fargo Rating Information
• Negative Sentiment: Q3 EPS of $0.54 fell short of analyst estimates, a potential concern despite the revenue beat. Multiple law firms also publicized an existing securities class action concerning investors who bought shares between May 2, 2025, and February 26, 2026. The litigation could weigh on sentiment, though the announcements largely repeat the same case. Class Action Notice

Institutional Trading of Duolingo

Hedge funds and other institutional investors have recently modified their holdings of the business. Childress Capital Advisors LLC grew its holdings in shares of Duolingo by 5.3% during the third quarter. Childress Capital Advisors LLC now owns 1,925 shares of the company’s stock valued at $274,000 after buying an additional 97 shares in the last quarter. Versant Capital Management Inc raised its position in Duolingo by 73.4% during the third quarter. Versant Capital Management Inc now owns 267 shares of the company’s stock valued at $38,000 after buying an additional 113 shares during the period. Root Financial Partners LLC lifted its stake in Duolingo by 194.1% in the 1st quarter. Root Financial Partners LLC now owns 250 shares of the company’s stock worth $25,000 after acquiring an additional 165 shares in the last quarter. Heritage Family Offices LLP purchased a new stake in Duolingo in the 3rd quarter worth about $27,000. Finally, Rathbones Group PLC boosted its position in Duolingo by 2.9% during the 1st quarter. Rathbones Group PLC now owns 7,460 shares of the company’s stock worth $735,000 after acquiring an additional 211 shares during the period. Institutional investors and hedge funds own 91.59% of the company’s stock.

Duolingo Price Performance

The stock has a market capitalization of $8.14 billion, a price-to-earnings ratio of 20.67, a price-to-earnings-growth ratio of 1.11 and a beta of 1.08. The company has a current ratio of 2.72, a quick ratio of 2.72 and a debt-to-equity ratio of 0.06. The stock has a 50-day simple moving average of $144.65 and a 200 day simple moving average of $124.10.

Duolingo (NASDAQ:DUOL) last issued its earnings results on Tuesday, November 3rd. The company reported $0.54 earnings per share for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.03). The business had revenue of $309.01 million during the quarter, compared to analyst estimates of $303.20 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 13.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $5.95 EPS. On average, equities research analysts forecast that Duolingo, Inc. will post 2.62 EPS for the current fiscal year.

About Duolingo

Duolingo, Inc develops technology-based learning products designed to make education accessible and engaging. Its flagship Duolingo mobile and web platform offers gamified courses in languages including Spanish, English, French, German and Japanese, among others. Lessons incorporate interactive exercises, personalized practice and achievement-based features intended to support regular learning.

The company also operates the Duolingo English Test, an online English-proficiency assessment that can be taken remotely and is accepted by educational institutions and other organizations.