Have JFrog Insiders Been Selling Stock?

We wouldn't blame JFrog Ltd. (NASDAQ:FROG) shareholders if they were a little worried about the fact that Yoseph Sela, the Lead Independent Director recently netted about US$797k selling shares at an average price of US$31.86. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.6%.

View our latest analysis for JFrog

The Last 12 Months Of Insider Transactions At JFrog

Notably, that recent sale by Lead Independent Director Yoseph Sela was not the only time they sold JFrog shares this year. Earlier in the year, they fetched US$44.32 per share in a -US$1.9m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$31.23). So it is hard to draw any strong conclusion from it.

In the last year JFrog insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like JFrog better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does JFrog Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. JFrog insiders own about US$521m worth of shares (which is 15% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The JFrog Insider Transactions Indicate?

Insiders sold JFrog shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing JFrog. You'd be interested to know, that we found 3 warning signs for JFrog and we suggest you have a look.

Of course JFrog may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.