Varonis Systems (NASDAQ:VRNS) Hits New 12-Month Low – Should You Sell?

Varonis Systems, Inc. (NASDAQ:VRNS) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $20.02 and last traded at $20.13, with a volume of 936062 shares. The stock had previously closed at $21.53.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on VRNS shares. Truist Financial reduced their price objective on Varonis Systems from $42.00 to $34.00 and set a “buy” rating for the company in a research report on Wednesday, February 4th. Morgan Stanley reiterated an “equal weight” rating and set a $41.00 price objective (down from $44.00) on shares of Varonis Systems in a research report on Monday, January 26th. DA Davidson upgraded Varonis Systems from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $25.00 to $30.00 in a research report on Thursday, February 5th. Royal Bank Of Canada reduced their price objective on Varonis Systems from $60.00 to $41.00 and set an “outperform” rating for the company in a research report on Monday, January 5th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Varonis Systems in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $42.79.

Varonis Systems Price Performance

The stock has a market capitalization of $2.36 billion, a price-to-earnings ratio of -17.66 and a beta of 0.68. The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.76. The business has a 50-day simple moving average of $23.83 and a two-hundred day simple moving average of $35.19.

Varonis Systems (NASDAQ:VRNS) last released its earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share 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 the consensus estimate of $168.66 million. Varonis Systems had a negative return on equity of 22.95% and a negative net margin of 20.74%.The firm’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.18 earnings per share. 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. As a group, research analysts predict that Varonis Systems, Inc. will post -0.83 earnings per share for the current fiscal year.

Insider Buying and Selling at Varonis Systems

In related news, Director Avrohom J. Kess purchased 17,800 shares of the company’s stock in a transaction on Friday, February 6th. The shares were bought at an average price of $22.29 per share, with a total value of $396,762.00. Following the completion of the acquisition, the director owned 49,403 shares of the company’s stock, valued at approximately $1,101,192.87. This represents a 56.32% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP David Bass bought 2,980 shares of the business’s stock in a transaction on Monday, February 9th. The shares were purchased at an average cost of $23.47 per share, for a total transaction of $69,940.60. Following the completion of the purchase, the executive vice president owned 1,042,924 shares in the company, valued at approximately $24,477,426.28. This trade represents a 0.29% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have purchased 25,780 shares of company stock valued at $579,403. Corporate insiders own 2.30% of the company’s stock.

Institutional Investors Weigh In On Varonis Systems

A number of large investors have recently bought and sold shares of the business. Stephens Inc. AR boosted its holdings in Varonis Systems by 1.9% during the third quarter. Stephens Inc. AR now owns 9,105 shares of the technology company’s stock valued at $523,000 after acquiring an additional 171 shares during the period. Inspire Investing LLC boosted its holdings in Varonis Systems by 2.9% during the third quarter. Inspire Investing LLC now owns 7,878 shares of the technology company’s stock valued at $453,000 after acquiring an additional 222 shares during the period. Arizona State Retirement System boosted its holdings in Varonis Systems by 0.9% during the third quarter. Arizona State Retirement System now owns 33,114 shares of the technology company’s stock valued at $1,903,000 after acquiring an additional 287 shares during the period. Signaturefd LLC boosted its holdings in Varonis Systems by 47.8% during the fourth quarter. Signaturefd LLC now owns 995 shares of the technology company’s stock valued at $33,000 after acquiring an additional 322 shares during the period. Finally, Savant Capital LLC boosted its holdings in Varonis Systems by 1.7% during the third quarter. Savant Capital LLC now owns 20,016 shares of the technology company’s stock valued at $1,150,000 after acquiring an additional 339 shares during the period. 95.65% of the stock is currently owned by 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.