JFrog Ltd. (NASDAQ: $FROG) is a provider of a comprehensive, hybrid, and universal DevOps platform. The JFrog DevOps platform empowers software creators to manage their entire software supply chain throughout the entire binary lifecycle.
The company’s product lineup comprises JFrog Artifactory, JFrog Xray, JFrog Advanced Security, JFrog Distribution, JFrog Artifactory Edge, JFrog Mission Control, JFrog Insight, JFrog Connect, and JFrog Pipelines.
These products are made available to customers through a multi-tiered subscription model, including JFrog Pro, JFrog Pro X, JFrog Enterprise X, and JFrog Enterprise Plus. JFrog’s offerings can be utilized through self-managed, software-as-a-service (SaaS), and hybrid deployment methods.
By overseeing the software supply chain, JFrog empowers organizations to efficiently deliver software updates across diverse systems.
Jfrog Ltd Up 16.82% To $26.32 After Earnings Beat
Wall Street’s initial earnings per share (EPS) forecast for Jfrog Ltd. stood at $0.08, but the company exceeded expectations by posting an EPS of $0.15. This impressive EPS figure, despite being an -88% surprise, resulted in a remarkable 650% increase in the company’s profits compared to the previous year, when its EPS was $0.02. This substantial surge in $Frog’s annual growth rate underscores its strong performance in the current economic landscape.
While consensus analyst estimates were set at $87.6 million, the technology company outperformed these predictions in its third quarter, achieving revenue of $88.6 million, reflecting a positive revenue surprise of $1.1 million (1%).
This growth signifies a 23% increase compared to the same period last year, when $Frog reported quarterly revenue of $72 million. Furthermore, the company’s higher earnings growth rate in comparison to its revenue growth suggests an improved profit margin.
Following this report, the stock has surged by 16.82% to reach $26.32, and the previously recommended Buy rating from Wall Street analysts may undergo revision in light of this new data.
JFrog Ltd CEO Ben Shlomi Sells 45,860 Shares
On October 18, 2023, Ben Shlomi, the CEO of JFrog Ltd (NASDAQ: FROG), executed the sale of 45,860 company shares. This action is in line with the CEO’s recent trend, as he has divested a total of 205,616 shares over the past year without making any purchases.
Ben Shlomi holds a pivotal role at JFrog Ltd, a company specializing in software update management. The firm’s Artifactory platform serves as a universal artifact repository for the management of software binaries throughout the entire application lifecycle. As the CEO, Shlomi plays a critical role in shaping the company’s strategic decisions and overseeing its operations.
The recent sale by this insider raises inquiries regarding the company’s present valuation and its future prospects. To comprehend the implications of this transaction, it is imperative to scrutinize the correlation between insider trading activities and the stock’s price.
An examination of the insider transaction history for $Frog reveals a distinct pattern: in the past year, there have been 67 instances of insider sales and no insider purchases. This pattern could suggest that insiders perceive the stock as overvalued, or it may simply reflect the personal financial choices of these insiders.
On the day of the recent insider sell-off, JFrog Ltd’s shares were trading at $23.11, resulting in a market capitalization of $2.336 billion. This valuation is notably lower than the company’s GuruFocus Value, which stands at $37.48, implying that the stock is substantially undervalued.
The GF Value represents an intrinsic valuation estimate developed by GuruFocus, factoring in historical multiples, an adjustment based on the company’s past performance and growth, and future business performance projections by Morningstar analysts. With a price-to-GF-Value ratio of 0.62, JFrog Ltd’s stock appears to be significantly undervalued.
Nevertheless, the recent divestiture by the insider might indicate their belief that the current stock price accurately reflects its value, or perhaps even that it is overvalued. Therefore, investors should take into account this insider activity as a key factor when making investment decisions regarding JFrog Ltd.
In conclusion, while JFrog Ltd’s stock seems undervalued based on its GF Value, the recent insider sell-off suggests an alternative perspective on the company’s valuation. Investors should exercise caution and perform thorough research before making investment decisions.
What is the $Frog prediction?
Out of the 12 analysts providing 12-month price projections for Jfrog Ltd, the median target stands at $33.00, with a high estimate of $40.00 and a low estimate of $29.00. This median estimate reflects a substantial increase of +52.50% from the most recent price of $21.64.
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