Varonis Systems’ (VRNS) “Neutral” Rating Reiterated at Piper Sandler

Piper Sandler reaffirmed their neutral rating on shares of Varonis Systems (NASDAQ:VRNS) in a report published on Friday morning,Benzinga reports. Piper Sandler currently has a $49.75 price target on the technology company’s stock, down from their prior price target of $58.00.

Other equities research analysts also recently issued reports about the company. Needham & Company LLC downgraded Varonis Systems from a “buy” rating to a “hold” rating in a report on Friday. Barclays cut their price objective on Varonis Systems from $52.00 to $50.00 and set an “overweight” rating on the stock in a report on Wednesday, July 29th. Susquehanna boosted their price objective on Varonis Systems from $36.00 to $55.00 and gave the company a “positive” rating in a research report on Wednesday, July 29th. Robert W. Baird increased their target price on Varonis Systems from $40.00 to $45.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 29th. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of Varonis Systems in a research note on Friday. Six analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $50.94.

Varonis Systems Price Performance

VRNS opened at $48.72 on Friday. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 1.02. Varonis Systems has a 12 month low of $19.70 and a 12 month high of $63.80. The company has a fifty day simple moving average of $45.81 and a 200 day simple moving average of $38.08. The stock has a market cap of $5.60 billion, a P/E ratio of -39.61 and a beta of 0.77.

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

Hedge Funds Weigh In On Varonis Systems

A number of large investors have recently added to or reduced their stakes in the company. American Capital Management Inc. bought a new position in shares of Varonis Systems during the second quarter worth about $94,062,000. Pictet Asset Management Holding SA raised its position in Varonis Systems by 43.4% in the 1st quarter. Pictet Asset Management Holding SA now owns 3,123,056 shares of the technology company’s stock valued at $67,029,000 after buying an additional 944,676 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd bought a new stake in Varonis Systems in the 2nd quarter valued at approximately $61,262,000. Stephens Investment Management Group LLC lifted its stake in 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 in the last quarter. Finally, Senvest Management LLC lifted its stake in Varonis Systems by 406.1% in the 1st quarter. Senvest Management LLC now owns 1,448,943 shares of the technology company’s stock valued at $31,109,000 after acquiring an additional 1,162,651 shares in the last quarter. Institutional investors own 95.65% of the company’s stock.

Trending Headlines about 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.