Varonis Systems (NASDAQ:VRNS) Reaches New 1-Year Low Following Analyst Downgrade

Varonis Systems, Inc. (NASDAQ:VRNS)’s stock price hit a new 52-week low during mid-day trading on Thursday after B. Riley Securities lowered their price target on the stock from $58.00 to $45.00. B. Riley Securities currently has a buy rating on the stock. Varonis Systems traded as low as $20.06 and last traded at $23.67, with a volume of 19819041 shares trading hands. The stock had previously closed at $26.53.

A number of other equities research analysts have also recently issued reports on VRNS. Barclays lowered their price objective on Varonis Systems from $50.00 to $45.00 and set an “overweight” rating on the stock in a research note on Monday, January 5th. Wedbush lowered their price target on shares of Varonis Systems from $53.00 to $35.00 and set an “outperform” rating on the stock in a research report on Wednesday. Susquehanna dropped their price target on shares of Varonis Systems from $65.00 to $50.00 and set a “positive” rating on the stock in a research note on Wednesday, October 29th. UBS Group set a $50.00 price objective on shares of Varonis Systems in a research note on Monday, January 26th. Finally, B. Riley Financial lowered their target price on shares of Varonis Systems from $58.00 to $45.00 and set a “buy” rating on the stock in a report on Wednesday. Seventeen investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Varonis Systems presently has a consensus rating of “Moderate Buy” and a consensus price target of $45.24.

Key Varonis Systems News

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

• Positive Sentiment: DA Davidson upgraded Varonis from “neutral” to “buy” and raised its price target to $30, giving the stock an analyst-backed boost. DA Davidson upgrade
• Positive Sentiment: An industry-themed note says Varonis aligns with Nasdaq‑100 cybersecurity themes, which can attract thematic/ETF flows and investor interest in security software names. Varonis aligns with Nasdaq‑100 cybersecurity themes
• Neutral Sentiment: Market activity shows unusually large options volume for VRNS, which often signals short‑term speculation or hedging that can increase intraday volatility but not necessarily change fundamentals. Unusually large options volume
• Neutral Sentiment: Some outlets report new analyst targets around the mid‑$30s (e.g., $34.20 reported), showing mixed analyst views after recent results. These disparate targets can produce short-term trading moves as investors digest the consensus. Analyst price target reporting
• Negative Sentiment: Multiple law firms have filed or are soliciting clients for a securities class action against Varonis (alleging misleading statements about its SaaS transition). Widespread plaintiff‑firm notices and a filed class action increase legal risk, potential costs, and investor uncertainty. Bronstein Gewirtz Grossman class action
• Negative Sentiment: Several sell‑side firms cut price targets (Cantor Fitzgerald, JPMorgan, Truist, Wedbush, Citi and others lowered targets in recent notes), signaling reduced near‑term optimism about growth/transition dynamics and likely applying downward pressure on the stock. Analyst price target cuts roundup
• Negative Sentiment: Coverage of the post‑earnings selloff highlights that, while Varonis beat the quarter, aspects of the report (and guidance/discussion around the SaaS transition) worried investors and contributed to a sharp drawdown. That earnings reaction remains a key driver of current sentiment. Post‑earnings selloff analysis

Hedge Funds Weigh In On Varonis Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bessemer Group Inc. raised its holdings in shares of Varonis Systems by 179.1% in the 2nd quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock valued at $25,000 after acquiring an additional 317 shares in the last quarter. Signaturefd LLC increased 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 purchasing an additional 322 shares during the last quarter. Allworth Financial LP raised its stake in Varonis Systems by 201.3% in the third quarter. Allworth Financial LP now owns 693 shares of the technology company’s stock valued at $40,000 after purchasing an additional 463 shares in the last quarter. Neo Ivy Capital Management bought a new stake in Varonis Systems during the third quarter valued at approximately $42,000. Finally, First Horizon Corp bought a new stake in Varonis Systems during the third quarter valued at approximately $45,000. 95.65% of the stock is currently owned by hedge funds and other institutional investors.

Varonis Systems Trading Up 2.0%

The stock’s 50 day simple moving average is $32.41 and its 200 day simple moving average is $45.25. The firm has a market cap of $2.66 billion, a PE ratio of -19.87 and a beta of 0.58. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.81 and a current ratio of 1.97.

Varonis Systems (NASDAQ:VRNS) last posted its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.05. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 22.95%. The firm had revenue of $173.37 million for the quarter, compared to analysts’ expectations of $168.66 million. During the same quarter last year, the company posted $0.18 EPS. The business’s quarterly revenue was up 9.4% on a year-over-year basis. 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. On average, sell-side analysts forecast that Varonis Systems, Inc. will post -0.83 earnings per share for the current fiscal year.

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.