Varonis Systems (NASDAQ:VRNS) Stock Bumped Down to “Hold” by Needham & Company LLC

Varonis Systems (NASDAQ:VRNS) was downgraded by stock analysts at Needham & Company LLC from a “buy” rating to a “hold” rating in a report released on Friday, Marketbeat Ratings reports.

VRNS has been the subject of a number of other research reports. Susquehanna increased their target price on shares of Varonis Systems from $36.00 to $55.00 and gave the stock a “positive” rating in a report on Wednesday, July 29th. Wells Fargo & Company lifted their price target on shares of Varonis Systems from $48.00 to $53.00 and gave the company an “overweight” rating in a report on Thursday. Barclays lowered their price objective on shares of Varonis Systems from $52.00 to $50.00 and set an “overweight” rating for the company in a research report on Wednesday, July 29th. TD Cowen increased their price objective on shares of Varonis Systems from $53.00 to $56.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Weiss Ratings downgraded shares of Varonis Systems from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, October 9th. Six investment analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Varonis Systems presently has an average rating of “Hold” and a consensus price target of $50.94.

Varonis Systems Price Performance

Shares of VRNS stock traded up $1.38 on Friday, hitting $48.72. 36,254,825 shares of the company’s stock were exchanged, compared to its average volume of 1,595,944. The company has a 50 day moving average of $45.81 and a 200 day moving average of $37.96. The stock has a market cap of $5.60 billion, a P/E ratio of -39.61 and a beta of 0.77. 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 has a 12 month low of $19.70 and a 12 month high of $63.80.

Varonis Systems (NASDAQ:VRNS) last released its quarterly earnings data on Tuesday, July 28th. The technology company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.03. Varonis Systems had a negative return on equity of 19.18% and a negative net margin of 20.55%. The business had revenue of $180.02 million for the quarter, compared to analyst estimates of $176.83 million. During the same period last year, the firm posted $0.03 earnings per share. Varonis Systems’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, equities research analysts predict that Varonis Systems will post -0.95 EPS for the current year.

Hedge Funds Weigh In On Varonis Systems

Institutional investors and hedge funds have recently bought and sold shares of the company. American Capital Management Inc. acquired a new stake in shares of Varonis Systems during the second quarter valued at about $94,062,000. Pictet Asset Management Holding SA increased its stake in shares of 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 valued at $67,029,000 after buying an additional 944,676 shares during the period. Clal Insurance Enterprises Holdings Ltd bought a new position in Varonis Systems in the 2nd quarter valued at approximately $61,262,000. Stephens Investment Management Group LLC raised its holdings 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 buying an additional 302,411 shares during the last quarter. Finally, Senvest Management LLC raised its holdings 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 buying an additional 1,162,651 shares during the last quarter. Institutional investors and hedge funds 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

Varonis Systems Company Profile

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.