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%.

JFrog Insider Transactions Over The Last Year

Notably, that recent sale by Lead Independent Director Yoseph Sela was not the only time they sold JFrog shares this year. They previously made an even bigger sale of -US$1.9m worth of shares at a price of US$44.32 per share. 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$30.26). So it may not tell us anything about how insiders feel about the current share price.

Insiders in JFrog didn't buy any shares in the last year. 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. JFrog insiders own about US$516m worth of shares (which is 15% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that JFrog has 3 warning signs and it would be unwise to ignore these.

But note: JFrog may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.