Raymond James analyst Alexander Sklar has maintained their neutral stance on DUOL stock, giving a Hold rating on September 5.
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Alexander Sklar has given his Hold rating due to a combination of factors related to Duolingo’s recent updates and market performance. Despite the company’s efforts to enhance its offerings, such as integrating the Duolingo Score with LinkedIn and expanding its Chess course, there are concerns about the slowing user growth as indicated by third-party data. These updates, while promising in terms of product-led growth, have not yet translated into a significant increase in user activity or financial performance.
Moreover, the introduction of new features like Video Call for Max subscribers and the expansion of language courses to achieve higher proficiency levels are seen as positive steps. However, these developments are still in the early stages of rollout and their impact on conversion and retention rates remains to be fully realized. As a result, Sklar maintains a cautious outlook, suggesting that while Duolingo’s strategic initiatives are promising, the immediate financial benefits are not yet clear enough to warrant a more optimistic rating.
In another report released on September 5, D.A. Davidson also downgraded the stock to a Hold with a $300.00 price target.
Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DUOL in relation to earlier this year.