Varonis Systems (NASDAQ:VRNS) Trading Down 9.7% – Here’s Why

Varonis Systems, Inc. (NASDAQ:VRNS) traded down 9.7% on Thursday . The company traded as low as $30.11 and last traded at $30.17. 1,355,363 shares traded hands during trading, a decline of 33% from the average session volume of 2,015,746 shares. The stock had previously closed at $33.41.

Varonis Systems News Roundup

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

• Negative Sentiment: Frank R. Cruz law firm says Varonis shareholders who lost money can seek lead‑plaintiff status in a securities fraud suit alleging misstatements about the SaaS transition. Read More.
• Negative Sentiment: Hagens Berman issued an investor alert highlighting a securities class action that accuses Varonis of misleading the market on its ability to convert on‑prem customers to SaaS; the firm reminds investors of the March 9, 2026 lead‑plaintiff deadline. Read More.
• Negative Sentiment: Bronstein, Gewirtz & Grossman announces a class action filed against Varonis and certain officers seeking recovery for investors who bought shares during the alleged misstatement period (Feb 4–Oct 28, 2025). Read More.
• Negative Sentiment: Kessler Topaz issued a shareholder reminder about the securities‑fraud class action and the class period (Feb 4–Oct 28, 2025), encouraging claims before the deadline. Read More.
• Negative Sentiment: Levi & Korsinsky notifies shareholders of the class action and urges affected investors to inquire about joining the case—another sign of multiple firms pursuing similar claims. Read More.
• Negative Sentiment: Bragar Eagel & Squire reminds investors of the March 9 lead‑plaintiff deadline and solicits contacts from those who experienced losses during the alleged class period. Read More.
• Negative Sentiment: Rosen Law Firm and Pomerantz (separate notices) also alert investors about the class action and deadlines—reinforcing that many firms expect damages claims tied to the SaaS transition messaging. Read More. Read More.
• Negative Sentiment: The Gross Law Firm and Faruqi & Faruqi issued investor notices investigating potential claims and encouraging affected shareholders to seek lead‑plaintiff status—adding to legal cost and distraction risk. Read More. Read More.
• Negative Sentiment: Robbins Geller and Bernstein Liebhard also announced opportunities for lead‑plaintiff applications and investigations, signaling widespread plaintiff‑firm interest that typically increases settlement leverage against companies. Read More. Read More.
• Negative Sentiment: Seeking Alpha commentary argues Varonis is being outpaced by larger rivals as cloud/SaaS trends benefit giants — a narrative that can weigh on sentiment beyond the litigation headlines. Read More.

Wall Street Analysts Forecast Growth

VRNS has been the subject of a number of recent research reports. Morgan Stanley reaffirmed an “equal weight” rating and issued a $41.00 target price (down previously from $44.00) on shares of Varonis Systems in a report on Monday, January 26th. Stephens began coverage on shares of Varonis Systems in a research report on Tuesday, December 30th. They issued an “equal weight” rating and a $40.00 price target for the company. Royal Bank Of Canada reduced their price objective on shares of Varonis Systems from $60.00 to $41.00 and set an “outperform” rating on the stock in a research note on Monday, January 5th. Needham & Company LLC cut their target price on Varonis Systems from $70.00 to $55.00 and set a “buy” rating on the stock in a report on Wednesday, October 29th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Fifteen equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Varonis Systems has an average rating of “Moderate Buy” and a consensus target price of $53.50.

Varonis Systems Stock Down 2.4%

The firm has a market cap of $3.52 billion, a price-to-earnings ratio of -29.25 and a beta of 0.56. The firm has a 50 day moving average of $33.16 and a 200 day moving average of $46.15. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.75.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings data on Tuesday, October 28th. The technology company reported $0.06 EPS for the quarter, hitting the consensus estimate of $0.06. Varonis Systems had a negative net margin of 18.82% and a negative return on equity of 21.91%. The company had revenue of $161.58 million during the quarter, compared to the consensus estimate of $166.47 million. During the same quarter last year, the firm posted $0.10 EPS. The company’s quarterly revenue was up 9.1% on a year-over-year basis. As a group, sell-side analysts predict that Varonis Systems, Inc. will post -0.83 earnings per share for the current year.

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Dynamic Technology Lab Private Ltd acquired a new position in Varonis Systems during the 1st quarter worth approximately $233,000. Caxton Associates LLP bought a new stake in shares of Varonis Systems during the first quarter valued at approximately $200,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Varonis Systems by 11.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 619,257 shares of the technology company’s stock worth $25,049,000 after purchasing an additional 64,636 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its position in Varonis Systems by 58.4% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 10,582 shares of the technology company’s stock valued at $541,000 after purchasing an additional 3,901 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. increased its stake in Varonis Systems by 48.4% during the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 12,562 shares of the technology company’s stock valued at $638,000 after purchasing an additional 4,097 shares in the last quarter. Institutional investors own 95.65% of the company’s stock.

Varonis Systems Company Profile

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.