Exploring JFrog Ltd. (FROG) Investor Profile: Who’s Buying and Why?

You're looking at JFrog Ltd. (FROG) because the fundamentals are getting harder to ignore, but the ownership structure raises questions about who is truly driving the stock's impressive run-it's a classic battle between strong institutional conviction and insider selling. The company just posted a strong Q3 2025, with revenue hitting $136.9 million, a solid 26% year-over-year jump, and Non-GAAP Diluted Earnings Per Share (EPS) of $0.22, beating consensus. Still, the stock's price action is heavily dictated by the institutional money, which owns about 71.52% of the float, with Vanguard Group Inc. alone holding a stake valued near $540.27 million. So, as management guides for a full-year 2025 revenue between $523 million and $525 million, do you follow the smart money accumulating shares, or do you worry about the recent net selling by insiders? That's the core tension we need to unpack.

Who Invests in JFrog Ltd. (FROG) and Why?

The investor profile for JFrog Ltd. (FROG) is dominated by large, sophisticated institutions, signaling a strong conviction in the company's long-term growth story within the critical DevOps and software supply chain space. If you're looking at FROG, you're defintely looking at a growth-at-a-reasonable-price (GARP) play, not a deep value investment.

Institutional investors own a massive chunk of the company, holding approximately 85.02% of the stock. This high concentration means the stock's price movements are heavily influenced by the trading decisions of a few hundred large funds, not the day-to-day activity of retail traders.

Key Investor Types: The Institutional Powerhouse

When you peel back the onion on JFrog's ownership, you see three main groups: institutional investors, insiders, and a smaller pool of retail investors. The institutions are the clear majority, holding over 97 million shares.

The largest institutional holders are exactly who you'd expect to see backing a high-growth tech platform. These include massive asset managers and mutual funds, like Vanguard Group Inc. and T. Rowe Price Investment Management, Inc., which typically take long-term positions. Plus, you see hedge funds, such as Point72 Asset Management, L.P., which might employ more active, event-driven, or short-term strategies.

Insiders-the company's executives and directors-still own a significant portion, roughly 14.10% of the stock. However, it's worth noting that insiders have been net sellers, offloading over 446,000 shares in the 90 days leading up to November 2025, which is a key data point for any potential investor to track.

Investment Motivations: The Cloud and Security Thesis

What's the core pitch that gets a fund manager to allocate capital to FROG? It boils down to their position as the system of record for the software supply chain-a business model that generates sticky, high-margin revenue.

The primary attraction is the company's explosive cloud growth and expansion into adjacent markets like DevSecOps (Development Security Operations) and MLOps (Machine Learning Operations). Cloud revenue was a standout in Q3 2025, growing 50% year-over-year and making up 46% of total revenue. Here's the quick math: high cloud adoption means higher recurring revenue and better scalability. For a deeper look at the financials, check out Breaking Down JFrog Ltd. (FROG) Financial Health: Key Insights for Investors.

Investors are also motivated by the strong customer economics. The trailing twelve months (TTM) Net Dollar Retention (NDR) rate sits at a healthy 118% as of Q3 2025, meaning existing customers are spending 18% more year-over-year. This indicates a successful land-and-expand strategy, especially among large enterprises, where the number of customers with over $1 million in Annual Recurring Revenue (ARR) has grown to 71.

• Growth Prospects: FY 2025 revenue is projected between $523 million and $525 million.
• Market Position: Dominance in the DevOps platform, expanding into the $40+ billion total addressable market (TAM) for software supply chain security.
• Profitability Trajectory: The company is profitable on a non-GAAP basis, guiding for full-year 2025 diluted EPS of $0.78 to $0.80.

Investment Strategies: Growth at a Premium

Given the high institutional ownership and the growth-centric motivations, the dominant strategy for JFrog is a long-term growth-oriented one. You don't buy a stock with a high Price-to-Sales (P/S) ratio-which was around 11.26 near its one-year high-for its value. You buy it for the future earnings and market share capture.

The large mutual fund investors are essentially employing a core holding strategy, betting that JFrog's platform will become an indispensable utility, much like a database or an operating system, securing a permanent place in the enterprise technology stack. They are willing to overlook the GAAP operating loss of ($21.6) million in Q3 2025 because of the strong Non-GAAP operating income of $25.6 million and the substantial cash position of $651.1 million.

Short-term traders and hedge funds, however, are likely focusing on momentum and catalysts. The stock's reaction to the Q3 2025 earnings beat-where EPS of $0.22 topped the forecasted $0.16-shows a clear momentum driver. The risk they map is continued insider selling or any slowdown in the crucial 40-42% cloud growth rate projected for the full year 2025. What this estimate hides, of course, is the potential impact of a broader economic slowdown on enterprise IT budgets.

Institutional Ownership and Major Shareholders of JFrog Ltd. (FROG)

You're looking at JFrog Ltd. (FROG) because the software supply chain platform is a critical piece of modern DevOps, and you want to know who else is betting big on its future. The direct takeaway is that JFrog is overwhelmingly an institutional favorite, with major money managers holding a dominant stake-a clear sign of professional validation, but also a source of potential volatility.

As of late 2025, institutional investors-the big players like mutual funds, pension funds, and insurance companies-control a substantial portion of JFrog Ltd. stock, ranging from 71.52% to over 85.02% of the outstanding shares. This level of ownership is typical for a mature, high-growth technology company and signals a high degree of confidence in the company's long-term strategy, particularly around AI artifact management and hybrid cloud readiness. You can dive deeper into the company's foundation here: JFrog Ltd. (FROG): History, Ownership, Mission, How It Works & Makes Money.

Top Institutional Investors and Their Shareholdings

The largest shareholders in JFrog Ltd. are the giants of the asset management world. These are mostly passive index funds and large active managers who see the company as a core holding in the enterprise software space. Vanguard Group Inc. is the undisputed leader, holding a massive position that anchors the institutional base.

Here's a snapshot of the top institutional holders and their positions based on the most recent 2025 filings:

To be fair, the sheer size of Vanguard's holding is largely due to their index funds, which are required to own a piece of every company in the benchmark. Still, it provides a powerful floor for the stock.

Recent Shifts: Who's Buying and Selling?

Near-term trading activity among institutions tells a story of tactical adjustments, not a mass exodus. The net flow of institutional money into FROG has been positive, with total institutional inflows over the last 12 months reaching approximately $1.14 billion, significantly outpacing the $585.54 million in outflows.

While the overall trend is accumulation, a closer look reveals a mixed bag:

• Buyers: T. Rowe Price Investment Management Inc. made a strong statement, increasing its position by 65.1% in Q1 2025. HighTower Advisors LLC also made a significant boost, increasing its stake by 452.1%. This suggests conviction in the company's growth narrative, particularly around its platform expansion.
• Sellers: JPMorgan Chase & Co. notably decreased its holdings by 29.4%. This kind of trimming often reflects portfolio rebalancing or profit-taking after the stock's impressive 89.20% price increase from late 2024 to November 2025.
• Insiders: This is a key risk to watch. Insiders have been net sellers, offloading 546,492 shares (valued at about $27.6 million) over the last three months. When the people who know the company best are selling, it's defintely worth a second thought.

Impact of Institutional Investors on Stock and Strategy

The concentration of ownership in JFrog Ltd. gives these large investors a significant, dual-edged influence on the stock price and corporate strategy. With the top 19 shareholders collectively owning 51% of the company, they effectively control the narrative and major decisions.

The positive impact is clear: high institutional ownership lends credibility and stability. It means the stock is not as susceptible to the whims of individual retail traders, contributing to JFrog's relatively stable weekly volatility of approximately 9% over the past year. But, if a few large, active funds decide to change their view simultaneously-a 'crowded trade' scenario-the stock price could drop fast.

Strategically, the board is highly attuned to institutional preferences. Since institutions prioritize long-term value, they push for:

• Consistent Growth: They demand clear, consistent execution on the strategic vision, especially around high-growth areas like AI artifact management and security, which are key to JFrog's enterprise demand.
• Governance and Transparency: These shareholders advocate for robust risk management frameworks and transparent executive compensation to ensure management's interests are aligned with their own. Since institutions own over half the stock, the board must pay attention to their preferences on long-term strategic and financial goals.

Here's the quick math: with institutions owning over three-quarters of the company, they are the primary force driving the need for continuous platform innovation and disciplined financial performance, especially as the company guides for a fiscal year 2025 EPS of $0.78 to $0.80.

Key Investors and Their Impact on JFrog Ltd. (FROG)

You want to know who is buying JFrog Ltd. (FROG) and why, and the short answer is that the company is overwhelmingly owned by large institutions who are betting on the long-term, mission-critical nature of its software supply chain platform. Institutions hold about 75% of the total shares, which gives them significant collective power over the stock price and strategic direction.

The core of the investor base is made up of passive index funds and large, active asset managers. The Vanguard Group, Inc. is the single largest shareholder, holding a 7.7% stake in the company, valued at over $432.75 million as of recent filings. This huge institutional presence signals a strong degree of credibility in the investment community, but it also means the stock is susceptible to large, coordinated selling if market sentiment shifts. That's a key risk to monitor.

The Big Players: Who Holds the Most FROG?

When you look at the top holders, you see a mix of giants and specialized growth funds. These firms are buying because they see JFrog Ltd. as a foundational piece of the modern DevOps and DevSecOps (Development Security Operations) landscape, especially as the company pushes into AI model management.

Here is a snapshot of the major institutional ownership as of the most recent data, showing the conviction of these large funds:

Interestingly, the top 19 shareholders together control about 51% of the company. This means while institutions control the majority, no single fund has a controlling interest, which tends to keep the board and management focused on broad shareholder value rather than the demands of one activist. You can get a sense of their strategic focus by reviewing the company's Mission Statement, Vision, & Core Values of JFrog Ltd. (FROG).

Recent Investor Moves: A Tale of Two Trades

The recent investor activity shows a divergence between institutional accumulation and insider selling, which is a dynamic you defintely need to understand. On one hand, you have funds like Hillsdale Investment Management Inc. increasing their stake by over 30.9% as of November 2025, and Calamos Advisors LLC establishing a new position of 12,196 shares in the second quarter. They are buying into the company's strong execution, which led to a raised Fiscal Year 2025 guidance of $523 million to $525 million in revenue.

But on the other hand, company insiders have been net sellers. Over the 90 days leading up to mid-November 2025, insiders sold a total of 546,492 shares, amounting to approximately $27.6 million. For example, CTO Yoav Landman, a top key executive who still holds a 5.5% stake, sold 102,419 shares in August 2025 for over $5.09 million. This is not unusual for executives managing their personal wealth after a significant stock run-up, but it's a data point that gives a realist like me pause. The stock's valuation, trading at 12.7x FY25 revenue and 58x FY25 Free Cash Flow (FCF), is stretched, which is why some investors are locking in gains.

• Institutional buying: Confirms belief in the growth story and the company's ability to deliver on its $0.78 to $0.80 Non-GAAP diluted EPS guidance for FY 2025.
• Insider selling: Suggests executives are taking profits after the stock's strong performance, perhaps viewing the current valuation as rich.

Investor Influence on Stock Movements

The high institutional ownership means their collective trading drives the stock's major price movements. When JFrog Ltd. reported its Q3 2025 results-revenue of $136.9 million and Non-GAAP EPS of $0.22, both beating consensus-the stock price increased, showing that positive execution is immediately rewarded by this investor base. They are focused on the accelerating momentum:

• Cloud revenue growth of 50% year-over-year in Q3 2025.
• Net Dollar Retention rate of 118% for the trailing four quarters.

The institutional focus is clearly on the company's ability to cross-sell its security and platform offerings, which is evident in the Net Dollar Retention rate. Any sign of a slowdown in this metric or a miss on the updated revenue guidance of $523 million to $525 million would likely trigger a swift institutional reaction, given the stock's premium multiple. Your action item is to track the Q4 2025 results closely for any deviation from the guidance, as that will be the next major catalyst.

Market Impact and Investor Sentiment

You want to know who is buying JFrog Ltd. (FROG) and what that tells you about the stock's future. The direct takeaway is that institutional conviction is high, with a strong 'Moderate Buy' consensus from analysts, but you must reconcile this with notable insider selling. This dynamic suggests that while Wall Street sees a clear path for growth, the company's own executives are taking some chips off the table.

Institutional investors-the big money like mutual funds and pension funds-are the dominant force here, holding a substantial 75% to 85.02% of the company's shares. This level of institutional ownership is a strong vote of confidence, indicating that the DevOps platform's long-term business model is resonating with sophisticated capital. In the last 24 months, institutional investors have bought over 33.2 million shares, representing approximately $1.13 billion in transactions, which is a significant accumulation trend. The largest institutional holder is Vanguard Group Inc., with a stake of over 9.1 million shares, or 7.7% of the company.

Here's the quick math on the major institutional players as of the third quarter of 2025:

What this estimate hides, though, is the insider activity. While institutions are buying, insiders-executives and directors-have been net sellers, offloading 546,492 shares, valued at around $27.6 million, in the last 90 days. For example, Director Frederic Simon sold 100,000 shares on November 7, 2025, for a total of approximately $5.88 million. This isn't a panic sale, but it's a data point you defintely need to consider; it suggests some internal stakeholders see the current valuation as a good time to monetize their holdings.

The market's reaction has been unequivocally positive, largely driven by the company's solid financial performance. The stock price as of mid-November 2025 was around $59.58 per share, marking a massive 89.20% increase from a year prior. This rally has been fueled by strong earnings beats, most recently in Q3 2025, where JFrog Ltd. reported $0.22 EPS against a consensus estimate of $0.16, and revenue of $136.9 million, a 25.5% year-over-year jump. Strong results like that silence a lot of the short-term noise.

Analyst perspectives are leaning toward continued upside, which reinforces the institutional buying. The consensus rating is a 'Moderate Buy' across 18 brokerages. The average 12-month price target is approximately $62.69, but several top-tier firms have set their sights much higher.

• Truist Financial raised its target to $70.00 on November 7, 2025.
• Needham & Company LLC also boosted its target to $70.00 on the same day.
• The highest price target is currently $71.00.

The core belief underpinning these targets is the company's strong guidance for the 2025 fiscal year, projecting an EPS of $0.78-$0.80 and an estimated revenue of approximately $524.37 million. Analysts believe the company's platform, which is critical for secure, fast software delivery (a concept JFrog calls 'Liquid Software'), is well-positioned to capitalize on the growing demand for DevOps and DevSecOps solutions. You can read more about their core strategy here: Mission Statement, Vision, & Core Values of JFrog Ltd. (FROG).