Is JFrog Stock a Buy After Investment Firm Anatole Purchased Over 1 Million Shares in a New Stake ?

<h2>What happened</h2>
<p>According to an <a href="https://www.sec.gov/Archives/edgar/data/1693745/000208111126000032/0002081111-26-000032-index.html">SEC filing</a> dated February 17, 2026, Anatole Investment Management Ltd established a new position in JFrog (NASDAQ:FROG), acquiring 1,385,795 shares during the fourth quarter of 2025. The estimated transaction value is approximately $86.56 million, calculated using the average price for the quarter. The quarter-end value of the stake, including price changes, also stands at $86.56 million.</p>
<h2>What else to know</h2>
<p>This new position represents 14.43% of Anatole's 13F reportable AUM as of December 31, 2025.</p>
<p>Top holdings after the filing:</p>
<ul>
<li> <p class="yf-1fy9kyt">NYSE:CIEN: $117.31 million (19.6% of AUM)</p></li>
<li> <p class="yf-1fy9kyt">NASDAQ:GOOGL: $110.06 million (18.4% of AUM)</p></li>
<li> <p class="yf-1fy9kyt">NASDAQ:PDD: $94.96 million (15.8% of AUM)</p></li>
<li> <p class="yf-1fy9kyt">NASDAQ:FROG: $86.56 million (14.4% of AUM)</p></li>
<li> <p class="yf-1fy9kyt">NASDAQ:SNDK: $63.73 million (10.6% of AUM)</p></li>
</ul>
<p>As of February 17, 2026, JFrog shares were priced at $47.57, up 13.2% over the past year, outperforming the S&amp;P 500 by 7.61 percentage points.</p>
<h2>Company/ETF overview</h2>
<table>
<row span="2">
<cell role="head"> <p>Metric</p></cell>
<cell role="head"> <p>Value</p></cell>
</row>
<row span="2"><cell> <p>Revenue (TTM)</p></cell><cell> <p>$531.84 million</p></cell> </row>
<row span="2"><cell> <p>Net income (TTM)</p></cell><cell> <p>($71.82 million)</p></cell> </row>
<row span="2"><cell> <p>Price (as of market close February 17, 2026)</p></cell><cell> <p>$47.57</p></cell> </row>
<row><cell> <p>One-year price change</p></cell><cell> <p>13.2%</p></cell> </row>
</table>
<h2>Company/ETF snapshot</h2>
<ul>
<li> <p class="yf-1fy9kyt">JFrog delivers a DevOps platform, including Artifactory, Pipelines, Xray, and Distribution, supporting software package management, CI/CD automation, and security scanning.</p></li>
<li> <p class="yf-1fy9kyt">The company generates revenue primarily through subscription-based software licenses and enterprise support services for its platform.</p></li>
<li> <p class="yf-1fy9kyt">Main customers include organizations in technology, financial services, retail, healthcare, and telecommunications sectors.</p></li>
</ul>
<p>JFrog operates at scale within the software development lifecycle sector, providing a comprehensive platform for managing, securing, and distributing software releases. Its strategy emphasizes automation, integration, and security, which position the company as a key enabler of enterprise DevOps transformation.</p>
<p>The company’s competitive advantage stems from its robust product suite and deep integration capabilities across diverse software environments.</p>
<h2>What this transaction means for investors</h2>
<p>The purchase of JFrog shares in the fourth quarter by Hong Kong-based Anatole Investment Management is noteworthy for a few reasons. This is a new position, and it was of substantial size that JFrog catapulted to the fund’s fourth largest holding. The action suggests Anatole is bullish on JFrog stock.</p>
<p>Anatole’s buy in Q4 of 2025 makes sense since JFrog’s business is doing well, but the timing was a bit off. JFrog shares dropped a whopping 38% in 2026 through Feb. 27, as Wall Street became spooked by artificial intelligence’s potential to make JFrog’s software irrelevant.</p>