Duolingo (NASDAQ:DUOL) Reaches New 1-Year Low – Here’s Why

Duolingo, Inc. (NASDAQ:DUOL)’s stock price hit a new 52-week low on Monday . The company traded as low as $164.06 and last traded at $163.6970, with a volume of 726355 shares changing hands. The stock had previously closed at $176.66.

More Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo named its audit committee chair as the next CFO, which should reassure investors about financial oversight and continuity at the executive level. Duolingo names audit chair as next CFO
• Positive Sentiment: Some investors/analysts view the recent crash as a buying opportunity and argue Duolingo’s long-term growth engine is underappreciated, framing current weakness as potential entry points. Duolingo: The Crash Is A Gift
• Positive Sentiment: Another analysis says uncertainty is already priced in and a new growth initiative could be underappreciated, suggesting upside if execution improves. Duolingo: Uncertainty Priced In, New Growth Engine Is Underappreciated
• Neutral Sentiment: Duolingo is promoting a 33% discount on its Super plan — could help short-term ARPU/retention but may compress near-term revenue per user. The Duolingo owl is handing out 33% off their Super plan
• Neutral Sentiment: A valuation comparison piece contrasts Duolingo with V2X for value investors — useful context but not a catalyst by itself. VVX or DUOL: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: Several write-ups ask whether DUOL is mispriced after the selloff, offering differing valuations and scenarios — helpful for position sizing but not conclusive. Is Duolingo (DUOL) Mispriced After Recent Share Price Weakness?
• Negative Sentiment: The CEO warned of “near‑term tradeoffs,” flagging potential pressure on near-term growth/monetization that likely prompted investor selling. Duolingo stock forecast as CEO warns of “near-term tradeoffs”
• Negative Sentiment: Analysts warn Duolingo’s outperformance is meeting growth headwinds and that valuations may still be overstretched, adding selling pressure. Duolingo’s Rule Of 69.5% Outperformance Meets Growth Headwinds And Overstretched Valuations
• Negative Sentiment: Several bearish takes argue the plunge isn’t yet a buying opportunity, reinforcing downside narratives and keeping sellers active. Duolingo Has Plunged, But There’s No Opportunity Here Yet
• Negative Sentiment: Coverage noting recent multi-month lows and a large market-cap decline highlights the scale of the selloff and can perpetuate momentum selling. Duolingo stock forecast as CEO warns of “near-term tradeoffs”

Analyst Upgrades and Downgrades

DUOL has been the topic of several analyst reports. Bank of America upgraded shares of Duolingo from a “neutral” rating to a “buy” rating and dropped their price target for the company from $301.00 to $250.00 in a research note on Monday, January 5th. Barclays decreased their price target on shares of Duolingo from $390.00 to $230.00 and set an “equal weight” rating for the company in a report on Thursday, November 6th. Zacks Research downgraded shares of Duolingo from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 13th. BMO Capital Markets upgraded Duolingo to a “buy” rating in a report on Monday. Finally, Wells Fargo & Company dropped their price objective on Duolingo from $185.00 to $160.00 and set an “underweight” rating on the stock in a research note on Thursday, January 8th. Twelve research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $308.50.

Duolingo Stock Down 5.7%

The business has a fifty day moving average of $185.52 and a 200 day moving average of $278.39. The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.07. The firm has a market cap of $7.22 billion, a P/E ratio of 19.81, a P/E/G ratio of 0.85 and a beta of 0.87.

Duolingo (NASDAQ:DUOL) last issued its earnings results on Wednesday, November 5th. The company reported $5.95 EPS for the quarter, beating the consensus estimate of $0.72 by $5.23. The firm had revenue of $271.71 million during the quarter, compared to the consensus estimate of $260.14 million. Duolingo had a net margin of 40.03% and a return on equity of 14.02%. The business’s quarterly revenue was up 41.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.49 earnings per share. On average, equities research analysts predict that Duolingo, Inc. will post 2.03 EPS for the current year.

Insider Buying and Selling at Duolingo

In related news, General Counsel Stephen C. Chen sold 1,514 shares of the stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $175.87, for a total transaction of $266,267.18. Following the completion of the transaction, the general counsel directly owned 31,542 shares of the company’s stock, valued at approximately $5,547,291.54. This represents a 4.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Severin Hacker sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $263.13, for a total value of $2,631,300.00. Following the transaction, the insider directly owned 72 shares in the company, valued at $18,945.36. This trade represents a 99.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 53,169 shares of company stock worth $11,605,151. Company insiders own 18.30% of the company’s stock.

Institutional Investors Weigh In On Duolingo

A number of institutional investors and hedge funds have recently modified their holdings of DUOL. Parallel Advisors LLC boosted its stake in shares of Duolingo by 16.3% during the 2nd quarter. Parallel Advisors LLC now owns 186 shares of the company’s stock worth $76,000 after acquiring an additional 26 shares during the period. US Bancorp DE boosted its holdings in shares of Duolingo by 1.4% during the second quarter. US Bancorp DE now owns 1,968 shares of the company’s stock worth $807,000 after acquiring an additional 28 shares during the period. New York Life Investment Management LLC grew its position in shares of Duolingo by 0.7% in the second quarter. New York Life Investment Management LLC now owns 4,067 shares of the company’s stock valued at $1,668,000 after purchasing an additional 30 shares during the last quarter. Meiji Yasuda Asset Management Co Ltd. increased its stake in shares of Duolingo by 3.5% during the second quarter. Meiji Yasuda Asset Management Co Ltd. now owns 940 shares of the company’s stock worth $385,000 after purchasing an additional 32 shares during the period. Finally, Evergreen Capital Management LLC boosted its stake 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 purchasing an additional 39 shares during the period. 91.59% of the stock is owned by institutional investors.

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.