Varonis Systems (NASDAQ:VRNS) Stock Price Down 9.7% – What’s Next?

Varonis Systems, Inc. (NASDAQ:VRNS) shares traded down 9.7% during trading on Monday . The stock traded as low as $21.49 and last traded at $21.3930. 1,056,152 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 3,718,040 shares. The stock had previously closed at $23.69.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Truist Financial decreased their price target on Varonis Systems from $42.00 to $34.00 and set a “buy” rating for the company in a research note on Wednesday, February 4th. Citigroup decreased their target price on shares of Varonis Systems from $37.00 to $28.00 and set a “neutral” rating for the company in a research report on Wednesday, February 4th. Cantor Fitzgerald lowered their target price on shares of Varonis Systems from $50.00 to $35.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 4th. Wedbush dropped their price target on shares of Varonis Systems from $53.00 to $35.00 and set an “outperform” rating on the stock in a research report on Wednesday, February 4th. Finally, Stephens initiated coverage on shares of Varonis Systems in a research note on Tuesday, December 30th. They issued an “equal weight” rating and a $40.00 price target for the company. Sixteen research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $45.25.

Varonis Systems Stock Down 11.0%

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 company has a market capitalization of $2.48 billion, a price-to-earnings ratio of -18.49 and a beta of 0.58. The stock’s fifty day simple moving average is $31.07 and its two-hundred day simple moving average is $43.06.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.05. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 22.95%. The company had revenue of $173.37 million for the quarter, compared to analysts’ expectations of $168.66 million. During the same quarter in the previous year, the company posted $0.18 EPS. The business’s revenue was up 9.4% compared to the same quarter last year. 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, sell-side analysts anticipate that Varonis Systems, Inc. will post -0.83 EPS for the current year.

Insider Buying and Selling

In related news, Director John J. Gavin, Jr. bought 5,000 shares of the business’s stock in a transaction dated Friday, February 6th. The shares were bought at an average cost of $22.54 per share, with a total value of $112,700.00. Following the completion of the transaction, the director directly owned 273,666 shares of the company’s stock, valued at approximately $6,168,431.64. This trade represents a 1.86% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP David Bass purchased 2,980 shares of the firm’s stock in a transaction that occurred on Monday, February 9th. The stock was bought at an average price of $23.47 per share, with a total value of $69,940.60. Following the transaction, the executive vice president directly owned 1,042,924 shares in the company, valued at $24,477,426.28. This trade represents a 0.29% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 25,780 shares of company stock worth $579,403 in the last three months. 2.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Assenagon Asset Management S.A. bought a new position in Varonis Systems during the third quarter valued at about $9,496,000. Yorktown Management & Research Co Inc acquired a new position in shares of Varonis Systems during the 2nd quarter valued at about $302,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Varonis Systems during the 2nd quarter valued at about $418,000. Connor Clark & Lunn Investment Management Ltd. raised its stake in shares of Varonis Systems by 3.6% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 293,083 shares of the technology company’s stock valued at $14,874,000 after acquiring an additional 10,100 shares in the last quarter. Finally, Capital Fund Management S.A. lifted its holdings in Varonis Systems by 31.0% in the 2nd quarter. Capital Fund Management S.A. now owns 306,695 shares of the technology company’s stock worth $15,565,000 after purchasing an additional 72,657 shares during the last quarter. 95.65% of the stock is owned by hedge funds and other institutional investors.

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.