Varonis Systems (NASDAQ:VRNS) Stock Rating Lowered by Truist Financial

Varonis Systems (NASDAQ:VRNS) was downgraded by equities researchers at Truist Financial from a “strong-buy” rating to a “hold” rating in a report released on Friday, Zacks reports.

A number of other brokerages have also weighed in on VRNS. Citigroup raised their price objective on Varonis Systems from $45.00 to $49.75 and gave the company a “neutral” rating in a research report on Friday. Susquehanna upped their target price on Varonis Systems from $36.00 to $55.00 and gave the company a “positive” rating in a research note on Wednesday, July 29th. DA Davidson reaffirmed a “neutral” rating and issued a $49.75 price target (down from $55.00) on shares of Varonis Systems in a research note on Friday. Barclays downgraded Varonis Systems from a “strong-buy” rating to a “hold” rating in a research report on Friday. Finally, Piper Sandler reissued a “neutral” rating and issued a $49.75 price objective (down from $58.00) on shares of Varonis Systems in a research note on Friday. Six equities research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $50.94.

Varonis Systems Stock Performance

Shares of VRNS stock traded up $1.38 during mid-day trading on Friday, reaching $48.72. 36,254,825 shares of the company’s stock traded hands, compared to its average volume of 1,595,944. Varonis Systems has a 12 month low of $19.70 and a 12 month high of $63.80. The firm has a 50 day moving average price of $45.81 and a two-hundred day moving average price of $37.96. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.65 and a current ratio of 1.65. The firm has a market capitalization of $5.60 billion, a PE ratio of -39.61 and a beta of 0.77.

Varonis Systems (NASDAQ:VRNS) last announced its earnings results on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of $0.01 by $0.03. The company had revenue of $180.02 million for the quarter, compared to analysts’ expectations of $176.83 million. Varonis Systems had a negative return on equity of 19.18% and a negative net margin of 20.55%. Varonis Systems’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period last year, the firm earned $0.03 EPS. Varonis Systems has set its FY 2026 guidance at 0.140-0.150 EPS and its Q3 2026 guidance at 0.020-0.030 EPS. On average, research analysts forecast that Varonis Systems will post -0.95 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in VRNS. American Capital Management Inc. purchased a new stake in shares of Varonis Systems during the second quarter worth approximately $94,062,000. Pictet Asset Management Holding SA grew its position in Varonis Systems by 43.4% in the first quarter. Pictet Asset Management Holding SA now owns 3,123,056 shares of the technology company’s stock worth $67,029,000 after acquiring an additional 944,676 shares during the period. Clal Insurance Enterprises Holdings Ltd acquired a new stake in shares of Varonis Systems during the 2nd quarter worth about $61,262,000. Stephens Investment Management Group LLC raised its stake in shares of Varonis Systems by 17.9% in the 1st quarter. Stephens Investment Management Group LLC now owns 1,992,760 shares of the technology company’s stock valued at $42,785,000 after acquiring an additional 302,411 shares during the period. Finally, Senvest Management LLC raised its position in Varonis Systems by 406.1% in the first quarter. Senvest Management LLC now owns 1,448,943 shares of the technology company’s stock valued at $31,109,000 after purchasing an additional 1,162,651 shares during the period. Hedge funds and other institutional investors own 95.65% of the company’s stock.

Key Headlines Impacting Varonis Systems

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

• Positive Sentiment: The proposed acquisition removes much of the company-specific uncertainty and offers shareholders a cash consideration above Varonis’s pre-deal trading level. RBC said the combination makes strategic sense as competition in cybersecurity intensifies. RBC on Varonis Acquisition
• Neutral Sentiment: Analyst actions largely reflect the announced transaction. Citigroup, Robert W. Baird and Wedbush raised their targets to approximately $49.75-$50, while Piper Sandler, TD Cowen, Jefferies, Wells Fargo, DA Davidson and Rosenblatt reaffirmed neutral, hold or equal-weight ratings with targets near $49.75. These targets imply limited additional upside because they are close to the offer price.
• Neutral Sentiment: Unusually heavy options activity included purchases of 7,193 call contracts, about 186% above average call volume, suggesting elevated speculative interest following the deal announcement. However, options activity does not guarantee further gains.
• Negative Sentiment: RBC downgraded Varonis to Sector Perform and lowered its target to $49.75 from $52, citing the Proofpoint transaction. With the stock near the cash offer, the remaining upside is limited and depends primarily on deal completion rather than operating performance.
• Negative Sentiment: Several shareholder-rights law firms announced investigations into whether the $49.75 offer fairly values Varonis and whether the board adequately protected investors. Such reviews could create transaction uncertainty, although they do not necessarily indicate that the deal will fail. Ademi Varonis Shareholder Alert

About Varonis Systems

Varonis Systems, Inc develops data security and cyber-risk management software for organizations seeking to protect sensitive information from unauthorized access, misuse, and cyberattacks. Its platform helps customers discover and classify data, analyze access permissions, identify unusual activity, and remediate security exposures across on-premises and cloud-based environments.

The company’s offerings are designed to secure data stored in file systems, collaboration platforms, databases, email, and other enterprise repositories.