Varonis Systems (NASDAQ:VRNS) Price Target Lowered to $30.00 at Needham & Company LLC

Varonis Systems (NASDAQ:VRNS) had its price objective lowered by Needham & Company LLC from $55.00 to $30.00 in a research note published on Wednesday morning,Benzinga reports. The brokerage currently has a buy rating on the technology company’s stock.

VRNS has been the subject of several other reports. Morgan Stanley reiterated an “equal weight” rating and issued a $41.00 price objective (down from $44.00) on shares of Varonis Systems in a report on Monday, January 26th. Weiss Ratings reissued a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Citigroup decreased their target price on Varonis Systems from $58.00 to $40.00 and set a “neutral” rating for the company in a research note on Monday, November 3rd. DA Davidson dropped their price target on shares of Varonis Systems from $55.00 to $40.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 29th. Finally, Piper Sandler upgraded shares of Varonis Systems from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $45.00 to $47.00 in a research report on Monday, January 5th. Fifteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $51.45.

Varonis Systems Trading Down 9.3%

Shares of VRNS stock opened at $26.53 on Wednesday. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.81 and a current ratio of 1.81. Varonis Systems has a 1 year low of $25.03 and a 1 year high of $63.90. The stock has a fifty day moving average of $32.99 and a two-hundred day moving average of $45.77. The firm has a market capitalization of $3.13 billion, a PE ratio of -26.01 and a beta of 0.58.

Varonis Systems (NASDAQ:VRNS) last issued its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.05. The business had revenue of $173.37 million for the quarter, compared to analysts’ expectations of $168.66 million. Varonis Systems had a negative net margin of 18.82% and a negative return on equity of 21.91%. The company’s revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the business earned $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 expect that Varonis Systems will post -0.83 EPS for the current year.

Institutional Investors Weigh In On Varonis Systems

Large investors have recently made changes to their positions in the company. Stephens Inc. AR lifted its position in shares of Varonis Systems by 1.9% in the 3rd 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 in the last quarter. Inspire Investing LLC grew its position in Varonis Systems by 2.9% during the 3rd quarter. Inspire Investing LLC now owns 7,878 shares of the technology company’s stock worth $453,000 after purchasing an additional 222 shares in the last quarter. Arizona State Retirement System raised its stake in Varonis Systems by 0.9% during the 3rd quarter. Arizona State Retirement System now owns 33,114 shares of the technology company’s stock valued at $1,903,000 after purchasing an additional 287 shares during the period. Bessemer Group Inc. lifted its holdings in shares of Varonis Systems by 179.1% in the second quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock valued at $25,000 after purchasing an additional 317 shares in the last quarter. Finally, Signaturefd LLC boosted its position in shares of Varonis Systems by 47.8% in the fourth quarter. Signaturefd LLC now owns 995 shares of the technology company’s stock worth $33,000 after buying an additional 322 shares during the period. Institutional investors and hedge funds own 95.65% of the company’s stock.

Key Stories Impacting Varonis Systems

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

• Positive Sentiment: Q4 beat on revenue and EPS; ARR and cash flow improved — Varonis reported $173.4M revenue (+9.4% YoY) and $0.08 EPS, topping consensus, with annual recurring revenue and SaaS ARR growth and stronger operating cash flow and free cash flow year‑to‑date. Varonis Announces Q4 and FY2025 Results
• Positive Sentiment: FY‑2026 guidance raised — management set FY‑2026 EPS guidance of $0.06–$0.10 and revenue $722M–$730M, above consensus revenue and materially better on EPS compared with street expectations for a loss, signaling expected margin recovery next year.
• Positive Sentiment: Strategic AI acquisition — Varonis is acquiring AllTrue.ai to add AI TRiSM capabilities, enhancing its ability to secure and monitor AI systems and strengthen its data‑security positioning as customers adopt AI. Varonis to Acquire AllTrue.ai
• Neutral Sentiment: Q1 2026 guidance still negative — management guided Q1 EPS to -$0.060 to -$0.050 and revenue $164M–$166M (about in line with consensus), indicating a near‑term earnings drag as the business completes the SaaS transition.
• Neutral Sentiment: Full earnings disclosure and call available — the transcript and slide deck provide detail on customer conversion cadence and margin plans; investors should review management commentary for cadence on SaaS conversions and subscription mix. Earnings Call Transcript
• Negative Sentiment: Multiple securities‑class action notices — several law firms and investor alerts announced potential suits alleging misleading statements about the SaaS transition (lead plaintiff deadline March 9), increasing legal risk and investor uncertainty. Shareholder Lawsuit Notice (PR Newswire)
• Negative Sentiment: Market reaction muted/negative despite beat — coverage notes the stock dipped after results, reflecting investor focus on legal overhang and the near‑term negative EPS guide even as FY outlook improved. Varonis Dipped Despite Strong Earnings

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.