JFrog (NASDAQ:FROG) Shares Gap Up Following Strong Earnings

JFrog Ltd. (NASDAQ:FROG) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $47.26, but opened at $56.41. JFrog shares last traded at $56.2780, with a volume of 932,506 shares traded.

The company reported $0.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.06. The company had revenue of $136.91 million during the quarter, compared to the consensus estimate of $128.28 million. JFrog had a negative return on equity of 7.54% and a negative net margin of 18.18%.JFrog’s revenue was up 25.5% on a year-over-year basis. During the same period last year, the company earned $0.15 earnings per share. JFrog has set its FY 2025 guidance at 0.780-0.800 EPS. Q4 2025 guidance at 0.180-0.200 EPS.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Barclays raised their price objective on JFrog from $52.00 to $57.00 and gave the stock an “overweight” rating in a report on Tuesday, October 21st. Canaccord Genuity Group increased their price target on shares of JFrog from $52.00 to $55.00 and gave the stock a “buy” rating in a report on Thursday, September 11th. TD Cowen boosted their price target on JFrog from $55.00 to $58.00 and gave the company a “buy” rating in a report on Friday, October 17th. Piper Sandler boosted their price objective on JFrog from $48.00 to $60.00 and gave the company a “neutral” rating in a research report on Friday. Finally, JPMorgan Chase & Co. boosted their target price on shares of JFrog from $48.00 to $55.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 24th. Sixteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, JFrog currently has an average rating of “Moderate Buy” and an average price target of $58.00.

Insiders Place Their Bets

In other JFrog news, Director Frederic Simon sold 50,000 shares of the company’s stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $47.11, for a total value of $2,355,500.00. Following the transaction, the director owned 4,154,903 shares of the company’s stock, valued at $195,737,480.33. This represents a 1.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CTO Yoav Landman sold 102,419 shares of the business’s stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $49.73, for a total transaction of $5,093,296.87. Following the completion of the sale, the chief technology officer directly owned 6,081,087 shares in the company, valued at $302,412,456.51. This trade represents a 1.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 431,492 shares of company stock valued at $20,979,800. 14.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On JFrog

Several institutional investors have recently modified their holdings of FROG. Verdence Capital Advisors LLC boosted its holdings in JFrog by 2.7% in the third quarter. Verdence Capital Advisors LLC now owns 9,639 shares of the company’s stock valued at $481,000 after purchasing an additional 253 shares during the period. Snowden Capital Advisors LLC increased its holdings in JFrog by 1.7% in the second quarter. Snowden Capital Advisors LLC now owns 15,183 shares of the company’s stock valued at $666,000 after buying an additional 253 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in JFrog by 32.4% during the first quarter. PNC Financial Services Group Inc. now owns 1,344 shares of the company’s stock worth $43,000 after purchasing an additional 329 shares in the last quarter. Arizona State Retirement System lifted its holdings in shares of JFrog by 1.3% in the 3rd quarter. Arizona State Retirement System now owns 28,768 shares of the company’s stock valued at $1,362,000 after purchasing an additional 362 shares during the last quarter. Finally, Park Avenue Securities LLC increased its holdings in shares of JFrog by 4.6% in the 2nd quarter. Park Avenue Securities LLC now owns 9,155 shares of the company’s stock valued at $402,000 after acquiring an additional 405 shares during the period. Institutional investors and hedge funds own 85.02% of the company’s stock.

JFrog Trading Up 21.5%

The stock has a market capitalization of $6.71 billion, a PE ratio of -73.49 and a beta of 1.02. The company has a 50 day simple moving average of $48.49 and a 200 day simple moving average of $43.82.

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.