Duolingo, Inc. $DUOL Shares Sold by Pictet Asset Management Holding SA

Key Points

• Pictet Asset Management cut its Duolingo stake by 91.4% in Q4, selling 55,940 shares and leaving 5,237 shares valued at $919,000, even as other institutions (notably the State of Michigan Retirement System) made large purchases.
• Q1 beat but guidance disappointed: Duolingo reported revenue of $291.97M (+26.5% YoY) and EPS of $0.89 (vs. $0.79 expected) aided by AI-driven content and margin gains, yet management's cautious 2026 forecast and softer bookings outlook pressured the stock.
• Mixed investor sentiment: Analysts have lowered targets and the consensus rating is "Hold" (consensus price target $195.94), while insiders have sold shares (14,939 sold in the last 90 days), reflecting continued caution.

Pictet Asset Management Holding SA cut its stake in Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 91.4% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,237 shares of the company's stock after selling 55,940 shares during the period. Pictet Asset Management Holding SA's holdings in Duolingo were worth $919,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in the stock. State of Michigan Retirement System raised its holdings in Duolingo by 5,800.0% in the fourth quarter. State of Michigan Retirement System now owns 560,500 shares of the company's stock valued at $98,368,000 after acquiring an additional 551,000 shares in the last quarter. Quent Capital LLC raised its holdings in Duolingo by 21,133.9% in the fourth quarter. Quent Capital LLC now owns 12,528 shares of the company's stock valued at $2,199,000 after acquiring an additional 12,469 shares in the last quarter. Impax Asset Management Group plc raised its holdings in Duolingo by 21.5% in the fourth quarter. Impax Asset Management Group plc now owns 7,128 shares of the company's stock valued at $1,251,000 after acquiring an additional 1,263 shares in the last quarter. WT Asset Management Ltd acquired a new stake in Duolingo in the fourth quarter valued at $4,563,000. Finally, Rakuten Securities Inc. raised its holdings in Duolingo by 84.2% in the fourth quarter. Rakuten Securities Inc. now owns 4,623 shares of the company's stock valued at $811,000 after acquiring an additional 2,113 shares in the last quarter. 91.59% of the stock is owned by institutional investors and hedge funds.

Duolingo Stock Up 1.0%

Shares of NASDAQ:DUOL opened at $105.02 on Thursday. The stock has a market capitalization of $4.93 billion, a price-to-earnings ratio of 12.09, a price-to-earnings-growth ratio of 0.72 and a beta of 0.90. Duolingo, Inc. has a 1-year low of $87.89 and a 1-year high of $544.93. The company's fifty day moving average is $100.25 and its two-hundred day moving average is $154.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.61 and a current ratio of 2.62.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its earnings results on Monday, May 4th. The company reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.79 by $0.10. The company had revenue of $291.97 million for the quarter, compared to analysts' expectations of $288.60 million. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The firm's revenue was up 26.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.72 earnings per share. Equities analysts anticipate that Duolingo, Inc. will post 3.08 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Matthew Skaruppa sold 3,986 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $113.52, for a total value of $452,490.72. Following the sale, the chief financial officer owned 31,631 shares of the company's stock, valued at $3,590,751.12. This trade represents a 11.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Natalie Glance sold 3,545 shares of the stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $113.51, for a total transaction of $402,392.95. Following the completion of the sale, the insider directly owned 115,380 shares in the company, valued at approximately $13,096,783.80. This trade represents a 2.98% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 14,939 shares of company stock worth $1,676,291. 16.62% of the stock is owned by company insiders.

Duolingo News Summary

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q1 beat on revenue and EPS with user growth and margin gains — Duolingo reported revenue of ~$292M (+27% YoY) and EPS that beat estimates; management highlighted AI-built content and new speaking tools driving users and bookings. Duolingo Q1 Earnings Beat Estimates on User Growth, Margin Gains
• Positive Sentiment: AI automation improving margins and content scale — Coverage notes Duolingo is using AI to automate content creation, which supported the quarterly beat and could lower content costs over time. Duolingo Posts Higher 1Q Profit, Revenue as It Uses AI Automate Content Creation
• Neutral Sentiment: Monetization strategy evolving — Analysts highlight the company is shifting toward subscription and feature monetization (less reliance on ads); pricing and AI-feature rollout remain work in progress through 2026. DUOL Stock: Is Duolingo Building a High-Quality Monetization Engine?
• Neutral Sentiment: Product moves to boost organic growth — The firm is improving the free-user experience to drive word-of-mouth referrals and is expanding subjects/AI access as part of its 2026 growth playbook; these initiatives may pressure margins early as they scale. Duolingo improves free user experience to drive word of mouth referrals
• Negative Sentiment: CEO issued a stark 2026 forecast, increasing investor caution — Management signaled a slower bookings trajectory and deliberately slower user-to-monetization pacing in 2026, which triggered the recent pullback despite the quarter’s beats. Duolingo CEO issues stark forecast for 2026
• Negative Sentiment: Softer bookings outlook overshadowed the beat — Market reaction centered on guidance showing deceleration in bookings growth for Q2, driving a sharp intraday drop after the print. Duolingo stock slides 14% as softer bookings outlook overshadows Q1 beat
• Negative Sentiment: Legal and valuation pressures — A securities-fraud investigation reminder and commentary on a ~79% one-year share decline raise headline risk and highlight ongoing valuation skepticism even as the company pivots to AI-driven growth. INVESTIGATION REMINDER: Faruqi & Faruqi, LLP Continues Investigation of Potential Securities Claims Against Duolingo (DUOL) DUOL Stock: Should Investors Buy After The 79% One-Year Drop?

Wall Street Analyst Weigh In

DUOL has been the topic of several recent analyst reports. Truist Financial cut shares of Duolingo from a "buy" rating to a "hold" rating and set a $100.00 price target on the stock. in a report on Friday, February 27th. Citigroup reaffirmed a "neutral" rating and issued a $101.00 price target (down from $270.00) on shares of Duolingo in a report on Friday, February 27th. Scotiabank reissued a "sector perform" rating and set a $100.00 target price (down from $300.00) on shares of Duolingo in a report on Friday, February 27th. Evercore set a $97.00 target price on shares of Duolingo in a report on Tuesday. Finally, Morgan Stanley dropped their target price on shares of Duolingo from $100.00 to $95.00 and set an "equal weight" rating on the stock in a report on Tuesday. Three equities research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $195.94.

Duolingo 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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