JFrog (NASDAQ:FROG) Reaches New 52-Week High Following Earnings Beat

Key Points

• JFrog Ltd. reached a new 52-week high of $46.64 following a stronger-than-expected quarterly earnings report, posting a 0.18 EPS against an estimated 0.16.
• Analysts have responded positively, with multiple brokerages raising their price targets for JFrog shares, now averaging $45.81, reflecting increased confidence in the company’s performance.
• Insider selling was noted, with key figures selling shares totaling over $11 million in the last quarter, while insider ownership remains at 14.10% of the company's stock.

JFrog Ltd. (NASDAQ:FROG - Get Free Report) shares hit a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $46.64 and last traded at $43.29, with a volume of 992030 shares changing hands. The stock had previously closed at $38.79.

The company reported $0.18 earnings per share for the quarter, beating analysts' consensus estimates of $0.16 by $0.02. JFrog had a negative net margin of 18.18% and a negative return on equity of 7.66%. The firm had revenue of $127.20 million for the quarter, compared to analyst estimates of $122.80 million. During the same period last year, the company posted $0.15 EPS. JFrog's quarterly revenue was up 23.5% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on FROG shares. Stifel Nicolaus upped their price objective on shares of JFrog from $45.00 to $53.00 and gave the company a "buy" rating in a report on Friday. Piper Sandler restated a "neutral" rating and set a $48.00 target price (up from $40.00) on shares of JFrog in a research note on Friday. Wall Street Zen upgraded shares of JFrog from a "hold" rating to a "buy" rating in a report on Sunday, June 29th. KeyCorp upped their price target on shares of JFrog from $46.00 to $52.00 and gave the company an "overweight" rating in a research report on Friday. Finally, Barclays upped their price objective on shares of JFrog from $45.00 to $52.00 and gave the stock an "overweight" rating in a research report on Friday. Two analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $46.87.

Insider Activity

In other news, CTO Yoav Landman sold 30,000 shares of the stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $43.96, for a total transaction of $1,318,800.00. Following the transaction, the chief technology officer directly owned 6,271,086 shares in the company, valued at $275,676,940.56. This represents a 0.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Ben Haim Shlomi sold 15,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 8th. The shares were sold at an average price of $41.75, for a total transaction of $626,250.00. Following the completion of the transaction, the chief executive officer owned 4,981,412 shares in the company, valued at $207,973,951. The trade was a 0.30% decrease in their position. The disclosure for this sale can be found here. Insiders sold 308,338 shares of company stock valued at $13,154,150 over the last quarter. 14.10% of the stock is currently owned by company insiders.

Institutional Trading of JFrog

A number of hedge funds have recently made changes to their positions in the stock. LPL Financial LLC boosted its holdings in JFrog by 19.8% in the fourth quarter. LPL Financial LLC now owns 22,002 shares of the company's stock worth $647,000 after purchasing an additional 3,633 shares during the period. Geode Capital Management LLC raised its position in JFrog by 5.8% in the fourth quarter. Geode Capital Management LLC now owns 143,481 shares of the company's stock worth $4,220,000 after acquiring an additional 7,839 shares in the last quarter. Bank of Montreal Can bought a new stake in JFrog in the fourth quarter worth about $405,000. Legal & General Group Plc increased its stake in JFrog by 4.1% in the 4th quarter. Legal & General Group Plc now owns 542,055 shares of the company's stock worth $15,942,000 after purchasing an additional 21,567 shares in the last quarter. Finally, Raymond James Financial Inc. purchased a new position in JFrog in the 4th quarter worth about $30,554,000. Institutional investors and hedge funds own 85.02% of the company's stock.

JFrog Stock Performance

The company has a market cap of $4.71 billion, a PE ratio of -53.50 and a beta of 1.06. The company has a 50 day simple moving average of $42.08 and a two-hundred day simple moving average of $37.96.

About JFrog

JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution.