JFrog (NASDAQ:FROG) Stock Price Down 10.7% on Disappointing Earnings

Key Points

• JFrog's stock price dropped 10.7% to $37.53 after the company reported an earnings per share (EPS) of ($0.14), missing the consensus estimate of $0.16 by $0.30.
• Despite the earnings miss, several analysts have raised their price targets for JFrog, with DA Davidson increasing it from $40.00 to $45.00 and maintaining a "buy" rating.
• Insider trading activity included CEO Ben Haim Shlomi selling 15,000 shares, bringing insider ownership down to 14.10% of the company.

Shares of JFrog Ltd. (NASDAQ:FROG - Get Free Report) fell 10.7% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $37.44 and last traded at $37.53. 2,794,106 shares changed hands during mid-day trading, an increase of 167% from the average session volume of 1,048,363 shares. The stock had previously closed at $42.02.

The company reported ($0.14) EPS for the quarter, missing the consensus estimate of $0.16 by ($0.30). JFrog had a negative net margin of 17.52% and a negative return on equity of 7.24%.

Analyst Upgrades and Downgrades

FROG has been the subject of several recent analyst reports. DA Davidson raised their price target on JFrog from $40.00 to $45.00 and gave the company a "buy" rating in a report on Friday, May 9th. Barclays reissued an "overweight" rating and issued a $45.00 price target (up from $42.00) on shares of JFrog in a report on Monday, July 21st. Cantor Fitzgerald reissued an "overweight" rating and issued a $46.00 price target on shares of JFrog in a report on Monday, May 5th. Wall Street Zen raised JFrog from a "hold" rating to a "buy" rating in a research note on Sunday, June 29th. Finally, Scotiabank dropped their price objective on JFrog from $40.00 to $36.00 and set a "sector perform" rating for the company in a research note on Thursday, April 24th. Three equities research analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $42.94.

Insiders Place Their Bets

In other news, CEO Ben Haim Shlomi sold 15,000 shares of JFrog stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $41.75, for a total value of $626,250.00. Following the completion of the sale, the chief executive officer owned 4,981,412 shares of the company's stock, valued at $207,973,951. The trade was a 0.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Eduard Grabscheid sold 13,043 shares of JFrog stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $45.00, for a total value of $586,935.00. Following the completion of the sale, the chief financial officer directly owned 159,887 shares of the company's stock, valued at approximately $7,194,915. This represents a 7.54% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 258,338 shares of company stock valued at $11,050,150. 14.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On JFrog

Hedge funds and other institutional investors have recently made changes to their positions in the business. Alliancebernstein L.P. lifted its stake in shares of JFrog by 1,974.0% during the first quarter. Alliancebernstein L.P. now owns 2,151,008 shares of the company's stock worth $68,832,000 after purchasing an additional 2,047,294 shares in the last quarter. Eminence Capital LP acquired a new position in shares of JFrog during the first quarter worth about $43,268,000. Raymond James Financial Inc. acquired a new position in shares of JFrog during the fourth quarter worth about $30,554,000. T. Rowe Price Investment Management Inc. lifted its stake in shares of JFrog by 65.1% during the first quarter. T. Rowe Price Investment Management Inc. now owns 2,630,179 shares of the company's stock worth $84,166,000 after purchasing an additional 1,037,482 shares in the last quarter. Finally, Mackenzie Financial Corp lifted its stake in shares of JFrog by 93.8% during the fourth quarter. Mackenzie Financial Corp now owns 1,996,012 shares of the company's stock worth $58,703,000 after purchasing an additional 965,912 shares in the last quarter. Hedge funds and other institutional investors own 85.02% of the company's stock.

JFrog Price Performance

The firm has a market capitalization of $4.44 billion, a PE ratio of -54.63 and a beta of 1.06. The stock has a 50-day moving average price of $42.19 and a 200-day moving average price of $37.75.

JFrog Company Profile

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.

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