Varonis Systems (NASDAQ:VRNS) Shares Gap Up Following Insider Buying Activity

Shares of Varonis Systems, Inc. (NASDAQ:VRNS) gapped up prior to trading on Wednesday following insider buying activity. The stock had previously closed at $26.26, but opened at $27.80. Varonis Systems shares last traded at $25.6350, with a volume of 1,037,704 shares.

Specifically, Director Avrohom J. Kess acquired 17,800 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were bought at an average cost of $22.29 per share, with a total value of $396,762.00. Following the completion of the transaction, the director directly owned 49,403 shares of the company’s stock, valued at $1,101,192.87. This trade represents a 56.32% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director John J. Gavin, Jr. acquired 5,000 shares of the stock in a transaction on Friday, February 6th. The shares were purchased at an average price of $22.54 per share, for a total transaction of $112,700.00. Following the transaction, the director directly owned 273,666 shares in the company, valued at approximately $6,168,431.64. This trade represents a 1.86% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In related news, EVP David Bass acquired 2,980 shares of the company’s stock in a transaction on Monday, February 9th. The stock was purchased at an average cost of $23.47 per share, with a total value of $69,940.60. Following the acquisition, the executive vice president directly owned 1,042,924 shares of the company’s stock, valued at approximately $24,477,426.28. The trade was a 0.29% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

Analysts Set New Price Targets

VRNS has been the topic of several recent analyst reports. Stephens began coverage on shares of Varonis Systems in a report on Tuesday, December 30th. They issued an “equal weight” rating and a $40.00 target price on the stock. Needham & Company LLC decreased their price objective on shares of Varonis Systems from $55.00 to $30.00 and set a “buy” rating on the stock in a research note on Wednesday, February 4th. DA Davidson upgraded Varonis Systems from a “neutral” rating to a “buy” rating and upped their target price for the stock from $25.00 to $30.00 in a research note on Thursday, February 5th. Robert W. Baird lowered Varonis Systems from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 29th. Finally, Zacks Research upgraded Varonis Systems from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 11th. Seventeen equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $45.24.

Key Stories Impacting Varonis Systems

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

• Positive Sentiment: Q4 results topped expectations (EPS and revenue) and analysts published upbeat takes that prompted buying following the company’s investor call. Read More.
• Positive Sentiment: Insider and director purchases — EVP David Bass bought ~2,980 shares and directors Avrohom Kess and John Gavin added shares — signaling insider confidence and supporting the rally. Read More.
• Neutral Sentiment: Analysts and market write‑ups are digging into the Q4 earnings call (questions on SaaS conversion, churn and guidance); useful for forward visibility but not an immediate binary catalyst. Read More.
• Neutral Sentiment: Management set FY‑2026 EPS guidance (modest positive range) and a Q1 guide that remains negative — this tempers upside and keeps execution on the SaaS transition as the principal watch item. Read More.
• Negative Sentiment: Numerous plaintiff law firms have filed notices and solicited lead‑plaintiff applicants in a securities class action alleging Varonis misled investors about its SaaS conversion (class period Feb 4, 2025–Oct 28, 2025). This multiple‑firm litigation drive increases legal, settlement and reputational risk. Read More.
• Negative Sentiment: Additional prominent plaintiff firms (Hagens Berman, Kessler Topaz, Rosen, Robbins Geller, Faruqi, etc.) have issued alerts and filings seeking lead plaintiffs, indicating broad litigation activity that could amplify legal costs or settlements. Read More.

Varonis Systems Trading Down 2.8%

The business has a 50 day moving average of $32.16 and a two-hundred day moving average of $44.76. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.97 and a current ratio of 1.97. The firm has a market capitalization of $3.00 billion, a price-to-earnings ratio of -22.39 and a beta of 0.58.

Varonis Systems (NASDAQ:VRNS) last issued its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.05. The firm had revenue of $173.37 million during the quarter, compared to analyst estimates of $168.66 million. Varonis Systems had a negative return on equity of 22.95% and a negative net margin of 20.74%.The company’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same period in the previous year, the company posted $0.18 EPS. 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. Equities analysts predict that Varonis Systems, Inc. will post -0.83 EPS for the current year.

Institutional Investors Weigh In On Varonis Systems

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its holdings in shares of Varonis Systems by 6.5% during the 4th quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company’s stock valued at $440,119,000 after purchasing an additional 822,925 shares during the last quarter. First Trust Advisors LP raised its holdings in shares of 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 acquiring an additional 230,852 shares in the last quarter. Geode Capital Management LLC lifted its stake in Varonis Systems by 5.7% in the fourth quarter. Geode Capital Management LLC now owns 2,833,180 shares of the technology company’s stock worth $92,943,000 after acquiring an additional 151,961 shares during the period. Pictet Asset Management Holding SA boosted its holdings in Varonis Systems by 99.1% in 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 acquiring an additional 1,084,267 shares in the last quarter. Finally, Stephens Investment Management Group LLC raised its holdings in Varonis Systems by 6.7% in the 4th quarter. Stephens Investment Management Group LLC now owns 1,690,349 shares of the technology company’s stock worth $55,443,000 after purchasing an additional 105,667 shares in the last quarter. Institutional investors own 95.65% of the company’s stock.

About Varonis Systems

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.