JFrog (NASDAQ:FROG) Stock Falls 5.9% - Should You Sell?

Key Points

• JFrog shares fell 5.9% to about $88.81 in midday trading, with volume roughly 95% below the stock’s average daily level.
• Analyst sentiment remains broadly positive: 21 analysts rate the stock a Buy, one rates it Hold and one Sell, producing a “Moderate Buy” consensus and an average price target of $109.95.
• JFrog recently beat quarterly expectations, reporting $0.27 in EPS and $163.77 million in revenue, up 28.7% year over year; however, insiders sold approximately $86.7 million of stock over the past three months.

Shares of JFrog Ltd. (NASDAQ:FROG - Get Free Report) fell 5.9% during mid-day trading on Monday. The company traded as low as $88.88 and last traded at $88.8060. 144,746 shares changed hands during mid-day trading, a decline of 95% from the average daily volume of 2,676,978 shares. The stock had previously closed at $94.39.

Analyst Ratings Changes

FROG has been the subject of several recent analyst reports. TD Cowen restated a "buy" rating and set a $120.00 target price on shares of JFrog in a research report on Thursday, September 3rd. Guggenheim raised their price target on JFrog from $105.00 to $115.00 and gave the company a "buy" rating in a report on Friday, August 7th. Stifel Nicolaus set a $102.00 price target on JFrog in a research report on Friday, September 4th. Weiss Ratings reissued a "sell (d-)" rating on shares of JFrog in a report on Thursday, October 15th. Finally, KeyCorp restated an "overweight" rating on shares of JFrog in a research report on Tuesday, October 27th. Twenty-one analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $109.95.

JFrog Trading Down 6.5%

The business has a fifty day moving average price of $94.08 and a 200-day moving average price of $71.84. The stock has a market capitalization of $10.88 billion, a PE ratio of -238.60 and a beta of 1.31.

JFrog (NASDAQ:FROG - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.03. JFrog had a negative return on equity of 2.71% and a negative net margin of 7.35%. The business had revenue of $163.77 million during the quarter, compared to analyst estimates of $155.63 million. During the same quarter in the prior year, the firm earned $0.18 earnings per share. JFrog's revenue for the quarter was up 28.7% on a year-over-year basis. JFrog has set its Q3 2026 guidance at 0.220-0.240 EPS and its FY 2026 guidance at 0.960-1.000 EPS. On average, equities analysts anticipate that JFrog Ltd. will post -0.11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other JFrog news, Director Frederic Simon sold 120,000 shares of the company's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $97.24, for a total transaction of $11,668,800.00. Following the completion of the sale, the director directly owned 2,744,328 shares in the company, valued at $266,858,454.72. This represents a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Tali Notman sold 18,794 shares of JFrog stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $86.98, for a total value of $1,634,702.12. Following the completion of the transaction, the executive owned 668,678 shares in the company, valued at approximately $58,161,612.44. This represents a 2.73% 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 sold a total of 915,453 shares of company stock valued at $86,664,266 over the last three months. 11.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On JFrog

A number of large investors have recently bought and sold shares of the stock. Millstone Evans Group LLC increased its stake in shares of JFrog by 242.6% in the first quarter. Millstone Evans Group LLC now owns 603 shares of the company's stock worth $28,000 after buying an additional 427 shares during the period. Western Wealth Management LLC bought a new stake in JFrog in the 1st quarter worth $30,000. Bessemer Group Inc. bought a new stake in JFrog in the 1st quarter worth $36,000. Allworth Financial LP increased its position in shares of JFrog by 83.1% in the second quarter. Allworth Financial LP now owns 648 shares of the company's stock valued at $59,000 after acquiring an additional 294 shares during the period. Finally, GK Wealth Management LLC purchased a new position in shares of JFrog in the third quarter valued at about $74,000. 85.02% of the stock is owned by hedge funds and other institutional investors.

JFrog Company Profile

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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