JFrog (NASDAQ:FROG) Shares Gap Down - What's Next?

Key Points

• JFrog shares gapped down before trading, opening at $86.54 after closing at $90.43 the prior day and last trading around $84.70.
• Despite the pullback, the company recently delivered a strong earnings beat, reporting $0.27 EPS versus $0.22 expected and revenue of $153.98 million, up 25.8% year over year.
• Recent activity shows mixed signals: analysts remain mostly positive with a Moderate Buy consensus, while CEO Ben Haim Shlomi and other insiders have sold shares in recent weeks.

JFrog Ltd. (NASDAQ:FROG - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $90.43, but opened at $86.54. JFrog shares last traded at $84.6980, with a volume of 311,119 shares changing hands.

Analyst Upgrades and Downgrades

FROG has been the subject of several recent research reports. Weiss Ratings reissued a "sell (d-)" rating on shares of JFrog in a report on Friday. DA Davidson set a $90.00 price target on shares of JFrog in a research report on Friday, May 8th. Needham & Company LLC lifted their price target on shares of JFrog from $70.00 to $80.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Citigroup reissued a "buy" rating on shares of JFrog in a research note on Monday, June 8th. Finally, Morgan Stanley restated an "overweight" rating and issued a $80.00 price objective on shares of JFrog in a report on Friday, May 8th. Twenty-one analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, JFrog has a consensus rating of "Moderate Buy" and an average target price of $84.86.

JFrog Price Performance

The firm has a 50 day simple moving average of $82.13 and a two-hundred day simple moving average of $60.95. The stock has a market cap of $10.28 billion, a price-to-earnings ratio of -160.11 and a beta of 1.20.

JFrog (NASDAQ:FROG - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.05. The company had revenue of $153.98 million during the quarter, compared to analyst estimates of $147.45 million. JFrog had a negative return on equity of 4.61% and a negative net margin of 10.93%.The company's revenue for the quarter was up 25.8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.20 EPS. JFrog has set its FY 2026 guidance at 0.930-0.970 EPS and its Q2 2026 guidance at 0.230-0.25 EPS. On average, sell-side analysts expect that JFrog Ltd. will post -0.15 earnings per share for the current fiscal year.

Insider Activity at JFrog

In other JFrog news, CEO Ben Haim Shlomi sold 93,072 shares of the company's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $84.60, for a total value of $7,873,891.20. Following the completion of the sale, the chief executive officer owned 4,658,236 shares of the company's stock, valued at approximately $394,086,765.60. This represents a 1.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frederic Simon sold 120,000 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.84, for a total transaction of $10,300,800.00. Following the completion of the sale, the director owned 3,224,328 shares in the company, valued at approximately $276,776,315.52. This trade represents a 3.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 917,399 shares of company stock worth $73,629,102. 11.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On JFrog

Large investors have recently modified their holdings of the business. Snowden Capital Advisors LLC increased its position in JFrog by 1.7% during the second quarter. Snowden Capital Advisors LLC now owns 15,183 shares of the company's stock worth $666,000 after acquiring an additional 253 shares during the period. Park Avenue Securities LLC boosted its holdings in JFrog by 3.1% in the 4th quarter. Park Avenue Securities LLC now owns 9,362 shares of the company's stock valued at $585,000 after purchasing an additional 279 shares during the period. Oppenheimer Asset Management Inc. grew its position in shares of JFrog by 2.0% during the 4th quarter. Oppenheimer Asset Management Inc. now owns 15,184 shares of the company's stock worth $948,000 after purchasing an additional 299 shares in the last quarter. Praxis Investment Management Inc. grew its position in shares of JFrog by 8.0% during the 1st quarter. Praxis Investment Management Inc. now owns 4,430 shares of the company's stock worth $208,000 after purchasing an additional 330 shares in the last quarter. Finally, Integrated Wealth Concepts LLC increased its holdings in shares of JFrog by 5.8% during the third quarter. Integrated Wealth Concepts LLC now owns 6,897 shares of the company's stock worth $326,000 after purchasing an additional 377 shares during the period. 85.02% of the stock is currently owned by institutional investors.

JFrog Company Profile

JFrog is a software company specializing in DevOps solutions designed to streamline the management, distribution and security of software binaries. Its core offering, JFrog Artifactory, serves as a universal artifact repository manager compatible with all major package formats, enabling development teams to store, version and share build artifacts across the software delivery pipeline. The company's platform also includes tools for continuous integration and delivery (CI/CD), security scanning and release automation.

Among JFrog's flagship products are JFrog Xray, a security and compliance scanning service that analyzes artifacts and dependencies for vulnerabilities; JFrog Pipelines, a CI/CD orchestration engine that automates build and release workflows; and JFrog Distribution, which accelerates the secure distribution of software releases to edge nodes and end users.

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