Truist Financial Boosts Duolingo (NASDAQ:DUOL) Price Target to $120.00

Key Points

• Truist Financial raised Duolingo’s price target to $120 from $100 but maintained a “hold” rating, implying roughly 3% downside from the prior close.
• Duolingo exceeded second-quarter expectations with $298.5 million in revenue and $0.66 adjusted EPS; revenue grew 18.3% year over year, while daily active users increased 23%.
• Investor caution remains due to below-consensus third-quarter revenue guidance, declining year-over-year net income and EPS, and Bank of America’s downgrade to “underperform.”

Duolingo (NASDAQ:DUOL - Get Free Report) had its price target lifted by equities research analysts at Truist Financial from $100.00 to $120.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. Truist Financial's price objective would suggest a potential downside of 2.98% from the stock's previous close.

A number of other equities research analysts also recently issued reports on the company. Jefferies Financial Group boosted their price target on Duolingo from $95.00 to $125.00 and gave the company a "hold" rating in a research report on Tuesday, July 14th. Scotiabank set a $120.00 price target on shares of Duolingo in a report on Thursday. Evercore set a $105.00 price objective on shares of Duolingo in a research note on Thursday. Bank of America downgraded Duolingo from a "neutral" rating to an "underperform" rating and lowered their price target for the company from $103.00 to $93.00 in a report on Tuesday. Finally, Wells Fargo & Company upped their target price on Duolingo from $81.00 to $82.00 and gave the stock an "underweight" rating in a research report on Tuesday, July 7th. Three research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $148.24.

Duolingo Price Performance

Shares of DUOL stock traded down $11.63 during trading hours on Thursday, hitting $123.69. The company's stock had a trading volume of 2,525,419 shares, compared to its average volume of 2,040,620. The company has a current ratio of 2.62, a quick ratio of 2.62 and a debt-to-equity ratio of 0.07. Duolingo has a twelve month low of $87.89 and a twelve month high of $468.00. The stock has a market cap of $5.76 billion, a price-to-earnings ratio of 14.23, a P/E/G ratio of 1.05 and a beta of 0.87. The business has a fifty day moving average of $125.09 and a 200-day moving average of $115.19.

Duolingo (NASDAQ:DUOL - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.06. The firm had revenue of $298.45 million during the quarter, compared to the consensus estimate of $295.58 million. Duolingo had a net margin of 38.44% and a return on equity of 14.07%. The firm's revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.91 EPS. As a group, equities research analysts anticipate that Duolingo will post 2.81 EPS for the current year.

Insider Buying and Selling at Duolingo

In related news, insider Natalie Glance sold 3,360 shares of Duolingo stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $113.59, for a total value of $381,662.40. Following the transaction, the insider owned 173,401 shares of the company's stock, valued at approximately $19,696,619.59. This trade represents a 1.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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, General Counsel Stephen C. Chen sold 1,977 shares of the business's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $113.61, for a total transaction of $224,606.97. Following the sale, the general counsel owned 52,807 shares in the company, valued at $5,999,403.27. This represents a 3.61% decrease in their position. 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. In the last three months, insiders sold 9,506 shares of company stock valued at $1,073,864. 16.62% of the stock is owned by insiders.

Hedge Funds Weigh In On Duolingo

Institutional investors and hedge funds have recently modified their holdings of the stock. Meiji Yasuda Asset Management Co Ltd. raised its holdings in Duolingo by 3.5% in the 2nd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 940 shares of the company's stock valued at $385,000 after acquiring an additional 32 shares during the last quarter. Evergreen Capital Management LLC grew its holdings in Duolingo by 5.0% in the 2nd quarter. Evergreen Capital Management LLC now owns 818 shares of the company's stock valued at $335,000 after buying an additional 39 shares in the last quarter. Public Employees Retirement System of Ohio increased its position in Duolingo by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 11,740 shares of the company's stock worth $3,778,000 after purchasing an additional 73 shares during the last quarter. Northwestern Mutual Investment Management Company LLC boosted its holdings in Duolingo by 1.2% in the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 8,953 shares of the company's stock valued at $1,571,000 after purchasing an additional 105 shares during the last quarter. Finally, Diversify Wealth Management LLC grew its stake in shares of Duolingo by 3.7% in the 4th quarter. Diversify Wealth Management LLC now owns 3,139 shares of the company's stock valued at $520,000 after buying an additional 111 shares during the period. 91.59% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Duolingo

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo reported second-quarter revenue of approximately $298.5 million, up 18.3% year over year and ahead of analysts’ expectations. Adjusted earnings of $0.66 per share also exceeded consensus estimates near $0.60-$0.61. Duolingo stock sinks 15% as Q3 revenue forecast misses expectations
• Positive Sentiment: Daily active users increased 23% year over year, supporting management’s strategy of prioritizing engagement and long-term user expansion. Duolingo is targeting 100 million daily active users by 2028. Duolingo outlines 2026 revenue growth of approximately 16%
• Positive Sentiment: Needham reaffirmed its “buy” rating and maintained a $145 price target, implying potential upside from recent trading levels.
• Neutral Sentiment: Duolingo generated $88.3 million in operating cash flow and ended the quarter with approximately $1.2 billion in cash and cash equivalents, providing financial flexibility.
• Negative Sentiment: Third-quarter revenue guidance of about $302 million was below the roughly $303.9 million analyst consensus. Investors viewed the forecast as a sign that near-term monetization may lag user growth. Duolingo's lower-than-expected revenue forecast overshadows quarterly beat
• Negative Sentiment: Second-quarter net income and EPS declined from the prior-year period, while operating profit grew only modestly, reinforcing concerns about slowing profitability growth.
• Negative Sentiment: Bank of America downgraded Duolingo to “underperform,” adding to investor caution around the company’s growth outlook.

About Duolingo

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source