Varonis Systems (NASDAQ:VRNS) Price Target Cut to $25.00 by Analysts at DA Davidson

Varonis Systems (NASDAQ:VRNS) had its price objective lowered by equities research analysts at DA Davidson from $40.00 to $25.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a “neutral” rating on the technology company’s stock. DA Davidson’s target price suggests a potential upside of 5.62% from the company’s previous close.

Other research analysts also recently issued research reports about the company. Zacks Research raised Varonis Systems from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 11th. UBS Group set a $50.00 price objective on shares of Varonis Systems in a research note on Monday, January 26th. Morgan Stanley restated an “equal weight” rating and issued a $41.00 target price (down from $44.00) on shares of Varonis Systems in a research note on Monday, January 26th. Robert W. Baird cut shares of Varonis Systems from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 29th. Finally, Wedbush reduced their price objective on Varonis Systems from $53.00 to $35.00 and set an “outperform” rating for the company in a research note on Wednesday. Fifteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Varonis Systems currently has a consensus rating of “Moderate Buy” and a consensus target price of $45.00.

Varonis Systems Trading Down 10.8%

NASDAQ VRNS traded down $2.86 during trading on Wednesday, hitting $23.67. 19,814,010 shares of the company’s stock traded hands, compared to its average volume of 3,326,116. The firm has a market cap of $2.79 billion, a P/E ratio of -23.21 and a beta of 0.58. The stock has a fifty day moving average of $32.99 and a two-hundred day moving average of $45.77. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.81 and a quick ratio of 1.81. Varonis Systems has a 12-month low of $20.06 and a 12-month high of $63.90.

Varonis Systems (NASDAQ:VRNS) last issued its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.03 by $0.05. The firm had revenue of $173.37 million during the quarter, compared to the consensus estimate of $168.66 million. Varonis Systems had a negative net margin of 18.82% and a negative return on equity of 21.91%. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.18 earnings per share. Varonis Systems has set its FY 2026 guidance at 0.060-0.100 EPS and its Q1 2026 guidance at -0.060–0.050 EPS. As a group, sell-side analysts expect that Varonis Systems will post -0.83 EPS for the current year.

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VRNS. Norges Bank purchased a new position in shares of Varonis Systems during the second quarter worth approximately $65,161,000. Pictet Asset Management Holding SA grew its holdings in Varonis Systems by 99.1% during the 4th quarter. Pictet Asset Management Holding SA now owns 2,178,380 shares of the technology company’s stock valued at $71,480,000 after buying an additional 1,084,267 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd increased its position in Varonis Systems by 166.7% during the 3rd quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,360,000 shares of the technology company’s stock worth $78,159,000 after purchasing an additional 850,000 shares in the last quarter. Vanguard Group Inc. boosted its position in Varonis Systems by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company’s stock worth $440,119,000 after acquiring an additional 822,925 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its stake in Varonis Systems by 319.8% in the second quarter. Allspring Global Investments Holdings LLC now owns 971,544 shares of the technology company’s stock valued at $48,606,000 after purchasing an additional 740,114 shares during the last quarter. 95.65% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Varonis Systems

Here are the key news stories impacting Varonis Systems this week:

• Positive Sentiment: Q4 beat and stronger SaaS momentum — Varonis reported Q4 revenue and EPS above estimates, SaaS ARR and ARR growth accelerated, and the company raised FY‑2026 revenue and EPS guidance (FY EPS guided 0.06–0.10 vs. prior street expectations). This supports a fundamental recovery narrative tied to the SaaS transition. Varonis Announces Fourth Quarter 2025 and Full-Year 2025 Financial Results
• Positive Sentiment: Strategic AI acquisition — Varonis announced it will acquire AllTrue.ai (reported valuation ~$150M) to add AI‑trust and runtime monitoring capabilities, expanding its security coverage for AI systems and reinforcing the company’s product roadmap into high‑priority enterprise AI security. Varonis to Acquire AllTrue-ai
• Neutral Sentiment: Analyst ratings largely intact but price targets cut — Multiple firms (JPMorgan, Cantor, B. Riley, Wedbush, Needham, Truist, Citi) lowered price targets — in some cases substantially — while many kept positive/overweight ratings. That reduces near‑term upside expectations even as analysts acknowledge recovery potential. Cantor Fitzgerald PT Lowered
• Negative Sentiment: Widespread class‑action notices and alleged fraud claims — Multiple plaintiff firms are soliciting lead‑plaintiff candidates for a securities class action claiming Varonis misled investors about its SaaS transition (class period Feb–Oct 2025). Litigation risk and potential damages/settlement uncertainty weigh on sentiment. Hagens Berman Investor Alert
• Negative Sentiment: Unusually large put buying — Traders bought a sharply elevated number of put options today (over 4,000), signaling short‑term bearish positioning and increased hedging/negative speculation around upcoming litigation and execution risks.
• Negative Sentiment: Analyst target cuts amplify downside risk — Although many analysts retained positive stances, the scale and concentration of target reductions compress near‑term valuation expectations and likely pressured selling after the earnings release.

Varonis Systems Company Profile

Varonis Systems is a cybersecurity firm specializing in the protection and management of unstructured data. The company’s flagship Data Security Platform provides advanced analytics for monitoring file systems, email servers, collaboration platforms and cloud storage. By continuously mapping and analyzing data permissions and user behavior, Varonis enables organizations to detect insider threats, verify compliance and remediate exposed data in real time.

Founded in 2005 and headquartered in New York City, Varonis serves a diverse global customer base across financial services, healthcare, media, manufacturing and government.