Key Points
- Duolingo General Counsel Stephen Chen sold 3,700 shares for $647,500 at $175 per share, reducing his stake by 8.45% to 40,069 shares. The sale was made under a pre-arranged Rule 10b5-1 plan.
- In its latest quarter, Duolingo reported revenue of $309.01 million, above expectations and up 13.7% year over year, while EPS of $0.54 fell short of the $0.57 consensus.
- Analyst sentiment is mixed: eight analysts rate the stock Buy, 14 Hold and one Sell, with a consensus price target of $145.62.
Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) General Counsel Stephen Chen sold 3,700 shares of the business's stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $175.00, for a total value of $647,500.00. Following the transaction, the general counsel directly owned 40,069 shares in the company, valued at approximately $7,012,075. This trade represents a 8.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Duolingo Price Performance
NASDAQ:DUOL opened at $157.02 on Friday. Duolingo, Inc. has a 12-month low of $87.89 and a 12-month high of $213.37. The firm has a market capitalization of $7.35 billion, a price-to-earnings ratio of 51.82, a P/E/G ratio of 1.30 and a beta of 1.08. The stock's 50 day moving average price is $145.28 and its two-hundred day moving average price is $124.17. The company has a quick ratio of 2.72, a current ratio of 2.75 and a debt-to-equity ratio of 0.06.
Duolingo (NASDAQ:DUOL - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The company reported $0.54 EPS for the quarter, missing the consensus estimate of $0.57 by ($0.03). Duolingo had a return on equity of 10.35% and a net margin of 12.33%. The business had revenue of $309.01 million for the quarter, compared to the consensus estimate of $303.20 million. During the same quarter in the prior year, the firm posted $5.95 earnings per share. The business's revenue was up 13.7% compared to the same quarter last year. On average, analysts anticipate that Duolingo, Inc. will post 2.65 earnings per share for the current year.
Wall Street Analyst Weigh In
Several equities research analysts have issued reports on DUOL shares. JPMorgan Chase & Co. raised their price target on Duolingo from $135.00 to $155.00 and gave the company a "neutral" rating in a report on Wednesday. KeyCorp raised shares of Duolingo from a "hold" rating to an "overweight" rating in a research report on Tuesday, August 18th. The Goldman Sachs Group set a $128.00 price objective on shares of Duolingo in a report on Wednesday. Jefferies Financial Group upped their price objective on shares of Duolingo from $95.00 to $125.00 and gave the company a "hold" rating in a report on Tuesday, July 14th. Finally, Weiss Ratings lowered shares of Duolingo from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday. Eight research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $145.62.
View Our Latest Stock Analysis on Duolingo
Duolingo News Roundup
Here are the key news stories impacting Duolingo this week:
- Positive Sentiment: Duolingo’s Q3 revenue beat expectations, while daily active users grew about 29% year over year and paid subscribers rose 14%. Management also raised its full-year revenue outlook and forecast Q4 bookings growth, supporting the longer-term growth case. Duolingo results and outlook
- Positive Sentiment: CEO commentary on monetizing while protecting the free-user experience may reassure investors concerned that stronger ads or paid features could undermine engagement. CEO on monetization and free users
- Neutral Sentiment: Truist raised its price target to $170 but kept a Hold rating, reflecting improved expectations while signaling limited conviction after the recent rebound. Analyst updates
- Negative Sentiment: Q3 EPS came in below consensus, and bookings growth lagged the increase in daily users. That gap raises questions about how quickly Duolingo can convert engagement into revenue and profits; valuation concerns may also weigh after the recent surge. Duolingo valuation analysis
- Negative Sentiment: Several law firms publicized a securities class action alleging misleading statements during May 2025–February 2026. The claims are allegations, not findings, but the litigation adds uncertainty. Class action notice
- Negative Sentiment: Two insiders reported stock sales. Both transactions were made under pre-arranged Rule 10b5-1 plans, which may temper the signal, but insider selling can still add to cautious sentiment. SEC insider-sale filing
Institutional Investors Weigh In On Duolingo
Several hedge funds have recently bought and sold shares of the stock. Childress Capital Advisors LLC boosted 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 worth $274,000 after acquiring an additional 97 shares during the period. Versant Capital Management Inc grew its position in shares of Duolingo by 73.4% in the third quarter. Versant Capital Management Inc now owns 267 shares of the company's stock valued at $38,000 after purchasing an additional 113 shares during the last quarter. Joel Isaacson & Co. LLC grew its position in shares of Duolingo by 6.5% in the third quarter. Joel Isaacson & Co. LLC now owns 2,071 shares of the company's stock valued at $295,000 after purchasing an additional 127 shares during the last quarter. Root Financial Partners LLC increased its stake in shares of Duolingo by 194.1% during the first quarter. Root Financial Partners LLC now owns 250 shares of the company's stock worth $25,000 after purchasing an additional 165 shares during the period. Finally, Heritage Family Offices LLP bought a new position in shares of Duolingo during the third quarter worth approximately $27,000. 91.59% of the stock is currently owned by institutional investors and hedge funds.
Duolingo Company Profile
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Get Free Report)
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.
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