Truist Financial Forecasts Strong Price Appreciation for Duolingo (NASDAQ:DUOL) Stock

Duolingo (NASDAQ:DUOL) had its price target raised by analysts at Truist Financial from $120.00 to $170.00 in a report issued on Thursday, Benzinga reports. The firm presently has a “hold” rating on the stock. Truist Financial‘s price target would suggest a potential upside of 5.97% from the company’s previous close.

Other equities analysts have also recently issued reports about the stock. KeyCorp upgraded shares of Duolingo from a “hold” rating to an “overweight” rating in a research report on Tuesday, August 18th. Wells Fargo & Company raised shares of Duolingo from an “underweight” rating to an “equal weight” rating and upped their price target for the stock from $80.00 to $120.00 in a report on Wednesday. Wedbush increased their price target on shares of Duolingo from $150.00 to $155.00 and gave the stock a “neutral” rating in a research report on Wednesday. Susquehanna began coverage on shares of Duolingo in a research note on Tuesday, August 18th. They issued a “positive” rating on the stock. Finally, Citigroup restated a “market perform” rating on shares of Duolingo in a research report on Wednesday. Eight analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Duolingo has a consensus rating of “Hold” and a consensus target price of $145.62.

Duolingo Price Performance

DUOL stock traded up $3.40 during midday trading on Thursday, reaching $160.42. The company had a trading volume of 1,283,226 shares, compared to its average volume of 857,488. The company has a market capitalization of $7.51 billion, a price-to-earnings ratio of 52.94, a price-to-earnings-growth ratio of 1.11 and a beta of 1.08. The stock has a 50 day moving average price of $145.63 and a 200-day moving average price of $124.23. Duolingo has a 1-year low of $87.89 and a 1-year high of $213.37. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $0.54 earnings per share for the quarter, missing the consensus estimate of $0.57 by ($0.03). The firm had revenue of $309.01 million for the quarter, compared to the consensus estimate of $303.20 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%. The company’s revenue for the quarter was up 13.7% compared to the same quarter last year. During the same period in the prior year, the company earned $5.95 EPS. Equities research analysts expect that Duolingo will post 2.70 earnings per share for the current year.

Insider Activity at Duolingo

In related news, Director William B. Gordon sold 10,000 shares of Duolingo stock in a transaction that occurred 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 sale, the director directly owned 68,415 shares of the company’s stock, valued at approximately $9,966,013.05. The trade was a 12.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 stock was sold at an average price of $129.13, for a total transaction of $355,236.63. Following the transaction, the insider owned 170,650 shares of the company’s stock, valued at approximately $22,036,034.50. This represents a 1.59% decrease in their ownership of the stock. 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 264,440 shares of company stock worth $39,697,193 over the last three months. 16.62% of the stock is owned by insiders.

Hedge Funds Weigh In On Duolingo

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Bank of America Corp DE boosted its position in Duolingo by 511.2% in the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock valued at $131,325,000 after buying an additional 1,114,315 shares in the last quarter. State of Michigan Retirement System grew its stake in shares of Duolingo by 112.9% during the first quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company’s stock worth $117,624,000 after buying an additional 632,807 shares during the last quarter. Renaissance Technologies LLC grew its stake in shares of Duolingo by 91.3% during the first quarter. Renaissance Technologies LLC now owns 603,806 shares of the company’s stock worth $59,517,000 after buying an additional 288,252 shares during the last quarter. Amundi increased its holdings in shares of Duolingo by 1,351.7% during the first quarter. Amundi now owns 449,068 shares of the company’s stock worth $44,265,000 after buying an additional 418,134 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in shares of Duolingo by 2.6% during the first quarter. Bank of New York Mellon Corp now owns 249,634 shares of the company’s stock worth $24,606,000 after buying an additional 6,233 shares in the last quarter. 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: Duolingo’s Q3 revenue exceeded expectations, while daily active users grew about 29% and paid subscribers rose nearly 14%. The company also raised its sales outlook, supporting optimism that user engagement can drive future growth. User growth and outlook
• Neutral Sentiment: Analyst reactions are mixed but mostly cautious: Truist lifted its price target to $170 while maintaining Hold, and Scotiabank raised its target to $140 with a Sector Perform rating. The target increases acknowledge improved prospects, but the ratings suggest limited conviction after the recent rebound. Scotiabank rating
• Negative Sentiment: Q3 earnings per share missed analysts’ estimates, and user growth outpacing bookings has renewed questions about monetization and near-term profitability. These concerns could temper the positive growth story. Growth and monetization analysis
• Negative Sentiment: Law firms are publicizing a securities class action alleging misleading statements during May 2025–February 2026. The allegations have not been proven, but the case adds uncertainty. Class action notice
• Negative Sentiment: Duolingo’s general counsel sold shares worth $647,500. The transaction was made under a pre-arranged trading plan, which may lessen its significance, though insider sales can weigh on sentiment. Insider sale details

Duolingo Company Profile

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.