Duolingo, Inc. $DUOL Stock: Investment House LLC Boosts Stake

Key Points

• Investment House LLC increased its Duolingo stake by 49.7% in the third quarter, bringing its holdings to 25,975 shares valued at approximately $3.7 million. Institutional investors collectively own 91.59% of the stock.
• Analyst sentiment is mixed, with a consensus rating of “Hold” and an average price target of $125.31; targets range from $125 to $175.
• Duolingo reported quarterly revenue of $298.45 million and adjusted earnings of $0.66 per share, exceeding estimates, while insiders sold about $37.7 million of stock over the last quarter.

Investment House LLC grew its position in shares of Duolingo, Inc. (NASDAQ:DUOL - Free Report) by 49.7% in the third quarter, according to its most recent filing with the SEC. The fund owned 25,975 shares of the company's stock after acquiring an additional 8,624 shares during the quarter. Investment House LLC owned about 0.06% of Duolingo worth $3,699,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of DUOL. Root Financial Partners LLC raised its stake in Duolingo by 194.1% during the first quarter. Root Financial Partners LLC now owns 250 shares of the company's stock valued at $25,000 after purchasing an additional 165 shares in the last quarter. Versant Capital Management Inc grew its stake in shares of Duolingo by 73.4% in the 3rd quarter. Versant Capital Management Inc now owns 267 shares of the company's stock worth $38,000 after buying an additional 113 shares in the last quarter. FNY Investment Advisers LLC purchased a new position in shares of Duolingo in the 2nd quarter worth $34,000. Banque Cantonale Vaudoise grew its stake in shares of Duolingo by 51.1% in the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company's stock worth $34,000 after buying an additional 115 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new stake in shares of Duolingo in the 4th quarter worth about $73,000. 91.59% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

DUOL has been the subject of several recent research reports. Morgan Stanley reiterated a "neutral" rating and issued a $140.00 price target on shares of Duolingo in a research report on Friday, October 9th. Jefferies Financial Group boosted their price objective on Duolingo from $95.00 to $125.00 and gave the stock a "hold" rating in a research note on Tuesday, July 14th. DA Davidson restated a "buy" rating and set a $175.00 price objective on shares of Duolingo in a research report on Tuesday, September 29th. Wells Fargo & Company initiated coverage on Duolingo in a research note on Tuesday, August 18th. They issued an "overweight" rating for the company. Finally, UBS Group lifted their target price on Duolingo from $125.00 to $150.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $125.31.

Insider Activity at Duolingo

In other Duolingo news, CEO Luis van Ahn sold 110,046 shares of the stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $151.70, for a total value of $16,693,978.20. Following the sale, the chief executive officer owned 110,046 shares in the company, valued at $16,693,978.20. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Stephen C. Chen sold 8,072 shares of Duolingo stock in a transaction on Monday, September 14th. The stock was sold at an average price of $149.33, for a total value of $1,205,391.76. Following the sale, the general counsel owned 43,769 shares of the company's stock, valued at approximately $6,536,024.77. This trade represents a 15.57% 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. Insiders have sold 250,740 shares of company stock worth $37,685,893 over the last quarter. 16.62% of the stock is owned by insiders.

More Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo is expanding creator partnerships and paid advertising to strengthen global brand awareness and attract additional language learners, supporting its longer-term user-growth strategy. Duolingo's Expanding Marketing Reach Fuels Long-Term Growth Prospects
• Neutral Sentiment: Several law firms, including Rosen, Kaplan Fox, ClaimsFiler, Faruqi & Faruqi and Pomerantz, are soliciting investors who purchased Duolingo Class A shares between May 2, 2025, and February 26, 2026. Investors have until December 7, 2026, to seek lead-plaintiff status in the federal securities case. These notices largely repeat the same information rather than represent new company-specific developments. Rosen Duolingo Securities Class Action Notice
• Neutral Sentiment: An outage affecting Duolingo users was also reported, but the available report does not indicate the duration, scope, financial impact or whether the issue was fully resolved. Duolingo Outage Report
• Negative Sentiment: The class-action complaint alleges that Duolingo made material misstatements or omissions about its monetization and growth strategies, including claims that heavier advertising and mass-produced AI-generated lessons were hurting user engagement and sustainable growth. One announcement referenced a prior 25.49% stock decline. If the case advances, potential litigation costs, management distraction and reputational damage could weigh on valuation. Duolingo Class Action Lawsuit Allegations

Duolingo Stock Performance

Duolingo stock opened at $141.39 on Friday. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. The firm has a market capitalization of $6.62 billion, a P/E ratio of 16.75, a price-to-earnings-growth ratio of 1.12 and a beta of 1.05. Duolingo, Inc. has a 1-year low of $87.89 and a 1-year high of $322.09. The company's 50-day moving average is $145.72 and its 200 day moving average is $127.32.

Duolingo (NASDAQ:DUOL - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.06. The business had revenue of $298.45 million during the quarter, compared to analyst estimates of $295.58 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 18.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.91 earnings per share. Research analysts forecast that Duolingo, Inc. will post 2.62 EPS for the current year.

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.

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