Varonis Systems (NASDAQ:VRNS) Downgraded by DA Davidson to “Hold”

DA Davidson lowered shares of Varonis Systems (NASDAQ:VRNS) from a strong-buy rating to a hold rating in a report issued on Thursday,Zacks reports.

Other research analysts also recently issued research reports about the stock. Robert W. Baird upped their price objective on shares of Varonis Systems from $45.00 to $50.00 and gave the stock a “neutral” rating in a research report on Friday. New Street Research restated a “buy” rating on shares of Varonis Systems in a research report on Wednesday, July 29th. Piper Sandler restated a “neutral” rating and set a $49.75 target price (down from $58.00) on shares of Varonis Systems in a research report on Friday. Cantor Fitzgerald restated an “overweight” rating on shares of Varonis Systems in a research note on Friday. Finally, Weiss Ratings cut Varonis Systems from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, October 9th. Six research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $50.94.

Varonis Systems Stock Performance

Shares of NASDAQ VRNS traded up $1.38 during midday trading on Thursday, reaching $48.72. 36,254,825 shares of the stock were exchanged, compared to its average volume of 1,595,944. The firm has a market cap of $5.60 billion, a price-to-earnings ratio of -39.61 and a beta of 0.77. Varonis Systems has a twelve month low of $19.70 and a twelve month high of $63.80. The firm has a 50-day simple moving average of $45.81 and a two-hundred day simple moving average of $37.96. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 1.02.

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

Hedge Funds Weigh In On Varonis Systems

A number of large investors have recently added to or reduced their stakes in VRNS. EverSource Wealth Advisors LLC lifted its holdings in Varonis Systems by 161.0% during the first quarter. EverSource Wealth Advisors LLC now owns 1,360 shares of the technology company’s stock valued at $29,000 after purchasing an additional 839 shares in the last quarter. Fifth Third Bancorp lifted its stake in Varonis Systems by 10,694.1% in the 1st quarter. Fifth Third Bancorp now owns 1,835 shares of the technology company’s stock valued at $39,000 after buying an additional 1,818 shares in the last quarter. Essential Partners LLC lifted its stake in Varonis Systems by 72.5% in the 1st quarter. Essential Partners LLC now owns 2,054 shares of the technology company’s stock valued at $44,000 after buying an additional 863 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Varonis Systems in the 2nd quarter worth about $55,000. Finally, Parallel Advisors LLC increased its stake in Varonis Systems by 1,025.4% during the 1st quarter. Parallel Advisors LLC now owns 3,320 shares of the technology company’s stock worth $71,000 after buying an additional 3,025 shares in the last quarter. 95.65% of the stock is currently owned by institutional investors and hedge funds.

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.