Varonis Systems (NASDAQ:VRNS) Stock Price Down 5.8% – Time to Sell?

Varonis Systems, Inc. (NASDAQ:VRNS)’s stock price traded down 5.8% during trading on Tuesday . The company traded as low as $21.57 and last traded at $22.3410. 579,776 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 3,199,366 shares. The stock had previously closed at $23.72.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on VRNS shares. Piper Sandler upgraded Varonis Systems from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $45.00 to $47.00 in a report on Monday, January 5th. B. Riley Financial cut their target price on shares of Varonis Systems from $58.00 to $45.00 and set a “buy” rating for the company in a report on Wednesday, February 4th. Wells Fargo & Company initiated coverage on shares of Varonis Systems in a report on Tuesday, March 3rd. They issued an “overweight” rating and a $28.00 price objective for the company. Citigroup reduced their target price on shares of Varonis Systems from $37.00 to $28.00 and set a “neutral” rating for the company in a research report on Wednesday, February 4th. Finally, William Blair restated a “market perform” rating on shares of Varonis Systems in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $43.15.

Varonis Systems Stock Performance

The firm has a fifty day moving average of $26.35 and a 200-day moving average of $37.72. 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 stock has a market capitalization of $2.58 billion, a price-to-earnings ratio of -19.27 and a beta of 0.61.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings results 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. Varonis Systems had a negative return on equity of 22.95% and a negative net margin of 20.74%.The business had revenue of $173.37 million during the quarter, compared to analysts’ expectations of $168.66 million. During the same quarter last year, the business posted $0.18 earnings per share. The business’s revenue for the quarter 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. As a group, sell-side analysts anticipate that Varonis Systems, Inc. will post -0.83 EPS for the current year.

Insiders Place Their Bets

In other news, EVP David Bass purchased 2,980 shares of Varonis Systems stock in a transaction dated Monday, February 9th. The stock was bought at an average price of $23.47 per share, with a total value of $69,940.60. Following the completion of the acquisition, the executive vice president owned 1,042,924 shares in the company, valued at $24,477,426.28. The trade was a 0.29% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Avrohom J. Kess acquired 17,800 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The stock was purchased at an average cost of $22.29 per share, for a total transaction of $396,762.00. Following the acquisition, the director owned 49,403 shares in the company, valued at approximately $1,101,192.87. This trade represents a 56.32% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased 25,780 shares of company stock valued at $579,403 over the last three months. Company insiders own 2.30% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Rockefeller Capital Management L.P. increased its stake in Varonis Systems by 38.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 3,761 shares of the technology company’s stock valued at $123,000 after acquiring an additional 1,050 shares during the period. Corient Private Wealth LLC lifted its position in shares of Varonis Systems by 4.8% in the 4th quarter. Corient Private Wealth LLC now owns 12,717 shares of the technology company’s stock worth $417,000 after acquiring an additional 585 shares during the period. Pacer Advisors Inc. grew its holdings in shares of Varonis Systems by 86.9% during the 4th quarter. Pacer Advisors Inc. now owns 11,637 shares of the technology company’s stock worth $382,000 after purchasing an additional 5,411 shares in the last quarter. Invesco Ltd. increased its position in shares of Varonis Systems by 14.8% during the fourth quarter. Invesco Ltd. now owns 119,313 shares of the technology company’s stock valued at $3,913,000 after purchasing an additional 15,384 shares during the period. Finally, Empowered Funds LLC bought a new stake in shares of Varonis Systems during the fourth quarter valued at approximately $37,000. Institutional investors and hedge funds 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.