Dimensional Fund Advisors LP Sells 71,222 Shares of Duolingo, Inc. $DUOL

Key Points

• Dimensional Fund Advisors cut its Duolingo stake by 38.2%, selling 71,222 shares during the first quarter and retaining 115,408 shares worth approximately $11.4 million. Institutional investors collectively own 91.59% of the company.
• Duolingo exceeded second-quarter expectations, reporting adjusted EPS of $0.66 and revenue of $298.5 million, up 18.3% year over year, while daily active users rose 23%.
• Slower forward growth remains a concern: weaker-than-expected third-quarter revenue guidance triggered a sharp selloff, while analyst views remain mixed, with a consensus “Hold” rating and a $148.12 price target.

Dimensional Fund Advisors LP trimmed its position in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 38.2% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 115,408 shares of the company's stock after selling 71,222 shares during the quarter. Dimensional Fund Advisors LP owned 0.25% of Duolingo worth $11,368,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also bought and sold shares of the company. Root Financial Partners LLC boosted its stake in shares of Duolingo by 194.1% during the 1st 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. EFG International AG bought a new stake in Duolingo in the fourth quarter worth about $26,000. AlphaCentric Advisors LLC bought a new stake in Duolingo in the fourth quarter worth about $33,000. Banque Cantonale Vaudoise boosted its position in shares of Duolingo by 51.1% during the first quarter. Banque Cantonale Vaudoise now owns 340 shares of the company's stock valued at $34,000 after buying an additional 115 shares during the period. Finally, Caitong International Asset Management Co. Ltd purchased a new position in shares of Duolingo during the fourth quarter valued at approximately $43,000. Institutional investors own 91.59% of the company's stock.

More Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo exceeded second-quarter expectations, reporting adjusted earnings of $0.66 per share versus consensus of roughly $0.60-$0.61, while revenue rose 18.3% year over year to $298.5 million, above the $295.6 million estimate. DUOL Q2 Earnings Beat Estimates on Strong User Growth
• Positive Sentiment: Daily active users increased 23% year over year, and paid subscribers continued to grow, reinforcing Duolingo’s long-term expansion strategy. Management also cited lower artificial-intelligence costs as a factor supporting profitability. Duolingo stock sinks 15% as Q3 revenue forecast misses expectations
• Positive Sentiment: Needham reaffirmed its Buy rating and set a $145 price target, while Truist raised its target to $120 from $100, indicating some analysts see value after the recent selloff. Analyst ratings and price targets
• Neutral Sentiment: Management is prioritizing engagement and user growth, targeting 100 million daily active users by 2028, but projected 2026 revenue growth of approximately 16% signals a materially slower pace than Duolingo’s historical expansion. Duolingo outlines 2026 revenue growth of approximately 16%
• Negative Sentiment: The main overhang is Duolingo’s third-quarter revenue forecast, which fell below Wall Street expectations. The guidance overshadowed the earnings and user-growth beats, prompting a sharp post-earnings selloff and raising concerns that the company’s growth engine is slowing. Duolingo posts better-than-expected sales but stock drops
• Negative Sentiment: Bank of America downgraded Duolingo to Underperform, and Truist’s Hold rating with a $120 target remains below the recent trading level, reflecting valuation and execution concerns. Bank of America downgrades Duolingo

Duolingo Stock Performance

Duolingo stock opened at $130.90 on Monday. 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 company has a market capitalization of $6.10 billion, a PE ratio of 15.51, a P/E/G ratio of 1.03 and a beta of 0.87. The company has a 50 day moving average price of $125.76 and a 200-day moving average price of $114.86. Duolingo, Inc. has a fifty-two week low of $87.89 and a fifty-two week high of $415.76.

Duolingo (NASDAQ:DUOL - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.66 EPS for the quarter, topping the consensus estimate of $0.60 by $0.06. The company had revenue of $298.45 million for the quarter, compared to the consensus estimate of $295.58 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.Duolingo's quarterly revenue was up 18.3% on a year-over-year basis. During the same period last year, the business posted $0.91 EPS. As a group, equities analysts forecast that Duolingo, Inc. will post 2.74 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on DUOL. Needham & Company LLC reiterated a "buy" rating and issued a $145.00 price target on shares of Duolingo in a report on Thursday. Evercore set a $105.00 price objective on Duolingo in a report on Thursday. Scotiabank set a $120.00 price objective on Duolingo in a research report on Thursday. Wall Street Zen lowered Duolingo from a "hold" rating to a "sell" rating in a research note on Saturday. Finally, UBS Group lifted their target price on Duolingo from $125.00 to $150.00 and gave the stock a "buy" rating in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eighteen have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Duolingo currently has an average rating of "Hold" and a consensus target price of $148.12.

Insider Activity

In related news, General Counsel Stephen C. Chen sold 1,977 shares of Duolingo stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $113.61, for a total value of $224,606.97. Following the completion of the sale, the general counsel directly owned 52,807 shares in the company, valued at $5,999,403.27. The trade was a 3.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 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. Also, insider Natalie Glance sold 3,360 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $113.59, for a total transaction of $381,662.40. Following the transaction, the insider owned 173,401 shares in the company, valued at approximately $19,696,619.59. The trade was a 1.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Over the last 90 days, insiders have sold 9,506 shares of company stock worth $1,073,864. Company insiders own 16.62% of the company's stock.

Duolingo Company Profile

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.

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