Wedbush Cuts Varonis Systems (NASDAQ:VRNS) Price Target to $35.00

Varonis Systems (NASDAQ:VRNS) had its price objective reduced by research analysts at Wedbush from $53.00 to $35.00 in a report released on Wednesday,Benzinga reports. The brokerage currently has an “outperform” rating on the technology company’s stock. Wedbush’s price objective points to a potential upside of 62.44% from the stock’s previous close.

Other research analysts have also recently issued research reports about the stock. Morgan Stanley restated an “equal weight” rating and issued a $41.00 target price (down previously from $44.00) on shares of Varonis Systems in a report on Monday, January 26th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Varonis Systems in a report on Wednesday, January 7th. Citigroup dropped their price objective on Varonis Systems from $58.00 to $40.00 and set a “neutral” rating for the company in a report on Monday, November 3rd. Truist Financial reduced their target price on Varonis Systems from $42.00 to $34.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, JPMorgan Chase & Co. dropped their price target on Varonis Systems from $62.00 to $50.00 and set an “overweight” rating for the company in a research note on Monday, January 26th. Fifteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $48.20.

Varonis Systems Trading Down 18.8%

Shares of VRNS traded down $4.98 during mid-day trading on Wednesday, reaching $21.55. The company’s stock had a trading volume of 1,820,645 shares, compared to its average volume of 2,620,894. The stock has a market cap of $2.54 billion, a PE ratio of -21.12 and a beta of 0.58. The company’s fifty day moving average price is $32.99 and its two-hundred day moving average price is $45.77. Varonis Systems has a 52 week low of $20.06 and a 52 week high of $63.90. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.75.

Varonis Systems (NASDAQ:VRNS) last posted its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.05. The business had revenue of $173.37 million during the quarter, compared to analyst estimates 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 revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the business 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. On average, analysts predict that Varonis Systems will post -0.83 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Varonis Systems

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in Varonis Systems by 6.5% in the 4th quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company’s stock worth $440,119,000 after purchasing an additional 822,925 shares during the period. First Trust Advisors LP boosted its stake in Varonis Systems by 7.9% during the third quarter. First Trust Advisors LP now owns 3,148,243 shares of the technology company’s stock valued at $180,930,000 after buying an additional 230,852 shares during the last quarter. Geode Capital Management LLC increased its position in Varonis Systems by 0.3% in the second quarter. Geode Capital Management LLC now owns 2,670,343 shares of the technology company’s stock worth $135,537,000 after purchasing an additional 7,342 shares during the last quarter. Pictet Asset Management Holding SA raised its stake in Varonis Systems by 99.1% during the fourth quarter. Pictet Asset Management Holding SA now owns 2,178,380 shares of the technology company’s stock valued at $71,480,000 after purchasing an additional 1,084,267 shares in the last quarter. Finally, Stephens Investment Management Group LLC lifted its position in Varonis Systems by 4.1% during the second quarter. Stephens Investment Management Group LLC now owns 1,670,404 shares of the technology company’s stock valued at $84,773,000 after purchasing an additional 65,846 shares during the last quarter. 95.65% of the stock is owned by institutional investors.

Varonis Systems News Summary

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

• Positive Sentiment: Q4 results beat consensus — EPS $0.08 vs. $0.03 expected and revenue $173.4M vs. $168.7M expected; ARR and SaaS metrics improved and cash flow rose year‑over‑year. Read More.
• Positive Sentiment: FY‑2026 guidance showed a pivot toward profitability (EPS $0.06–$0.10 vs. street at −$0.06) and raised revenue outlook ($722–$730M vs. $718M consensus) — this suggests management expects acceleration from the SaaS transition. Read More.
• Positive Sentiment: Acquisition of AllTrue.ai (AI TRiSM) to extend Varonis into AI security — reported valuation ~$150M, which could help monetize AI governance demand and complement data/access controls. Read More.
• Neutral Sentiment: Analysts trimmed price targets but kept buy ratings — Needham cut its target from $55 to $30; Truist cut from $42 to $34. These cuts reduce upside expectations even though the ratings remain constructive. Read More.
• Negative Sentiment: Multiple law firms have filed or solicited lead‑plaintiff cases alleging disclosure issues tied to the SaaS transition; an active litigation pipeline raises legal risk and potential distraction/costs. Read More.
• Negative Sentiment: Analyst/coverage and deep‑dive pieces highlight margin pressure from the SaaS transition and execution risk — investors remain sensitive to growth vs. margin tradeoffs as Varonis shifts revenue mix. Read More. Read More.

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.