JFrog (NASDAQ:FROG) Stock Gets Downgrade from Wall Street Zen

Key Points

• Wall Street Zen downgraded JFrog from “Buy” to “Hold,” although broader analyst sentiment remains bullish, with 21 Buy ratings, one Hold, one Sell and an average price target of $109.48.
• JFrog shares rose 7.2% to $100.62, near their 12-month high of $105.76, while the company’s latest quarterly results exceeded expectations: EPS came in at $0.27 versus $0.24 expected and revenue grew 28.7% year over year.
• Insider selling may temper investor enthusiasm: insiders sold 915,453 shares worth approximately $86.7 million over the past 90 days, despite strong institutional ownership and new AI-security and software-governance product initiatives.

JFrog (NASDAQ:FROG - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

FROG has been the subject of several other reports. BTIG Research reiterated a "buy" rating and set a $115.00 target price on shares of JFrog in a research note on Friday, September 4th. Oppenheimer boosted their price objective on JFrog from $105.00 to $115.00 and gave the company an "outperform" rating in a research report on Friday, August 7th. Cantor Fitzgerald upped their price objective on JFrog from $80.00 to $100.00 and gave the stock an "overweight" rating in a research note on Monday, August 3rd. Royal Bank Of Canada reiterated an "outperform" rating and issued a $118.00 target price on shares of JFrog in a research note on Thursday, September 3rd. Finally, KeyCorp increased their price objective on JFrog from $89.00 to $114.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Twenty-one investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $109.48.

JFrog Trading Up 7.2%

Shares of NASDAQ:FROG opened at $100.62 on Friday. The stock's 50-day moving average price is $93.30 and its two-hundred day moving average price is $80.67. JFrog has a 12-month low of $34.05 and a 12-month high of $105.76. The firm has a market cap of $12.41 billion, a price-to-earnings ratio of -271.94 and a beta of 1.24.

JFrog (NASDAQ:FROG - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.27 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. The company had revenue of $163.77 million during the quarter, compared to the consensus estimate of $155.63 million. JFrog had a negative net margin of 7.35% and a negative return on equity of 2.71%. The company's quarterly revenue was up 28.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.18 EPS. JFrog has set its Q3 2026 guidance at 0.220-0.240 EPS and its FY 2026 guidance at 0.960-1.000 EPS. As a group, research analysts forecast that JFrog will post -0.11 earnings per share for the current fiscal year.

Insider Activity at JFrog

In other JFrog news, CRO Tali Notman sold 19,157 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $90.51, for a total value of $1,733,900.07. Following the completion of the sale, the executive owned 687,472 shares in the company, valued at $62,223,090.72. This represents a 2.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Frederic Simon sold 120,000 shares of JFrog stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $93.21, for a total transaction of $11,185,200.00. Following the sale, the director directly owned 2,864,328 shares of the company's stock, valued at $266,984,012.88. This trade represents a 4.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 915,453 shares of company stock worth $86,664,266 in the last 90 days. 11.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On JFrog

Several institutional investors have recently bought and sold shares of the stock. Wasatch Advisors LP boosted its holdings in shares of JFrog by 187.4% during the 1st quarter. Wasatch Advisors LP now owns 4,156,033 shares of the company's stock worth $195,043,000 after buying an additional 2,710,167 shares during the period. First Trust Advisors LP increased its holdings in JFrog by 85,066.4% in the 1st quarter. First Trust Advisors LP now owns 3,362,370 shares of the company's stock valued at $157,796,000 after buying an additional 3,358,422 shares during the period. Bank of America Corp DE raised its position in JFrog by 48.2% in the first quarter. Bank of America Corp DE now owns 2,517,899 shares of the company's stock worth $118,165,000 after purchasing an additional 819,326 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of JFrog by 78.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,964,925 shares of the company's stock worth $92,214,000 after buying an additional 861,835 shares during the period. Finally, Lazard Asset Management LLC boosted its stake in JFrog by 41.9% in the 1st quarter. Lazard Asset Management LLC now owns 1,716,050 shares of the company's stock valued at $80,534,000 after buying an additional 506,366 shares in the last quarter. 85.02% of the stock is currently owned by institutional investors.

JFrog News Roundup

Here are the key news stories impacting JFrog this week:

• Positive Sentiment: JFrog’s new AI-SEC products strengthen its growth narrative. The company introduced tools for detecting “shadow AI,” scanning AI assets and enforcing policies across development and production environments. The offering expands JFrog beyond artifact management into the potentially higher-value AI-security market. JFrog AI Security article
• Positive Sentiment: New DevGovOps and compliance capabilities could support enterprise adoption. Features including signed compliance evidence, repository-level policies and DORA-related controls position JFrog as a broader software governance platform and may improve customer retention. JFrog DevGovOps announcement
• Positive Sentiment: Analyst sentiment remains supportive. Truist raised its price target to $115 while maintaining a Buy rating, citing confidence in JFrog’s growth outlook. Recent institutional filings also showed substantial share additions by BlackRock, JPMorgan and other investors.
• Neutral Sentiment: The upcoming earnings report is the next major catalyst. JFrog previously beat quarterly revenue and EPS expectations, with revenue up 28.7% year over year, but investors will look for confirmation that cloud momentum and fiscal-year guidance remain on track. JFrog pre-earnings sentiment article
• Negative Sentiment: Insider selling is a risk signal. Director Barry Zwarenstein sold 1,250 shares under a pre-arranged Rule 10b5-1 plan. Separately, company insiders have reported numerous sales and no open-market purchases in the past six months, which could temper enthusiasm despite the recent product and analyst catalysts.

About JFrog

JFrog Ltd. is a software company that provides a platform for managing, securing and distributing software packages and releases throughout the application development lifecycle. Its technology is designed to help organizations move software reliably from development through production across cloud, on-premises and hybrid environments.

The company's products include JFrog Artifactory, a repository for storing and managing software packages and container images; JFrog Xray, which provides security and compliance analysis for software components; and tools for continuous integration, continuous delivery, software distribution and release management.

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