Varonis Systems (NASDAQ:VRNS) Stock Dropped to Hold by B. Riley Financial

B. Riley Financial downgraded shares of Varonis Systems (NASDAQ:VRNS) from a strong-buy rating to a hold rating in a report released on Friday,Zacks reports.

VRNS has been the subject of a number of other reports. Truist Financial lifted their price target on shares of Varonis Systems from $34.00 to $52.00 and gave the company a “buy” rating in a research report on Tuesday, July 21st. Royal Bank Of Canada cut Varonis Systems from an “outperform” rating to a “neutral” rating in a report on Friday. Weiss Ratings downgraded Varonis Systems from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, October 9th. Piper Sandler reaffirmed a “neutral” rating and set a $49.75 price objective (down from $58.00) on shares of Varonis Systems in a report on Friday. Finally, Stephens upgraded Varonis Systems from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $33.00 to $45.00 in a research report on Wednesday, June 24th. Six research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $50.94.

Varonis Systems Price Performance

Shares of NASDAQ VRNS traded up $1.38 during trading on Friday, hitting $48.72. 36,254,825 shares of the company were exchanged, compared to its average volume of 1,595,944. The company has a market cap of $5.60 billion, a price-to-earnings ratio of -39.61 and a beta of 0.77. Varonis Systems has a 1 year low of $19.70 and a 1 year high of $63.80. The firm’s fifty day moving average price is $45.81 and its 200 day moving average price is $37.96. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.65 and a quick ratio of 1.65.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.01 by $0.03. Varonis Systems had a negative net margin of 20.55% and a negative return on equity of 19.18%. The business had revenue of $180.02 million during the quarter, compared to the consensus estimate of $176.83 million. During the same quarter last year, the firm posted $0.03 EPS. The business’s revenue was up 18.3% compared to the same quarter last year. 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, sell-side analysts expect that Varonis Systems will post -0.95 earnings per share for the current fiscal year.

Institutional Trading of Varonis Systems

Large investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC increased its stake in shares of Varonis Systems by 161.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,360 shares of the technology company’s stock worth $29,000 after purchasing an additional 839 shares in the last quarter. Fifth Third Bancorp lifted its stake in Varonis Systems by 10,694.1% in the 1st quarter. Fifth Third Bancorp now owns 1,835 shares of the technology company’s stock valued at $39,000 after buying an additional 1,818 shares in the last quarter. Essential Partners LLC lifted its stake in Varonis Systems by 72.5% in the 1st quarter. Essential Partners LLC now owns 2,054 shares of the technology company’s stock valued at $44,000 after buying an additional 863 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Varonis Systems in the 2nd quarter valued at approximately $55,000. Finally, Parallel Advisors LLC grew its holdings in Varonis Systems by 1,025.4% during the 1st quarter. Parallel Advisors LLC now owns 3,320 shares of the technology company’s stock valued at $71,000 after buying an additional 3,025 shares during the last quarter. 95.65% of the stock is currently owned by institutional investors and hedge funds.

Key Varonis Systems News

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.