Varonis Systems (NASDAQ:VRNS) Stock Rating Lowered by DA Davidson

Varonis Systems (NASDAQ:VRNS) was downgraded by research analysts at DA Davidson from a “strong-buy” rating to a “hold” rating in a note issued to investors on Thursday, Zacks reports.

A number of other research firms have also commented on VRNS. Wedbush raised their price objective on Varonis Systems from $46.00 to $49.75 and gave the stock a “neutral” rating in a research note on Friday. UBS Group upped their target price on Varonis Systems from $37.00 to $58.00 and gave the company a “buy” rating in a research report on Tuesday, July 21st. Piper Sandler reissued a “neutral” rating and set a $49.75 target price (down from $58.00) on shares of Varonis Systems in a report on Friday. New Street Research reissued a “buy” rating on shares of Varonis Systems in a report on Wednesday, July 29th. Finally, TD Cowen restated a “hold” rating and issued a $49.75 price target (down from $56.00) on shares of Varonis Systems in a research report on Friday. Six analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $50.94.

Varonis Systems Stock Performance

Shares of NASDAQ:VRNS traded up $1.38 on Thursday, reaching $48.72. 36,254,825 shares of the company’s stock were exchanged, compared to its average volume of 1,595,944. The company has a fifty day moving average of $45.81 and a 200-day moving average of $37.96. Varonis Systems has a twelve month low of $19.70 and a twelve month high of $63.80. The company has a market capitalization of $5.60 billion, a price-to-earnings ratio of -39.61 and a beta of 0.77. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 1.02.

Varonis Systems (NASDAQ:VRNS) last announced its earnings results on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, topping 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 company had revenue of $180.02 million for the quarter, compared to analysts’ expectations of $176.83 million. During the same period last year, the firm earned $0.03 earnings per share. The business’s revenue for the quarter was up 18.3% on a year-over-year basis. 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. On average, research analysts predict that Varonis Systems will post -0.95 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in VRNS. Corient Private Wealth LLC grew its stake in Varonis Systems by 4.8% in the 4th quarter. Corient Private Wealth LLC now owns 12,717 shares of the technology company’s stock valued at $417,000 after purchasing an additional 585 shares during the period. EverSource Wealth Advisors LLC grew 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 during the period. Assetmark Inc. grew its holdings in Varonis Systems by 21.0% during the first quarter. Assetmark Inc. now owns 4,848 shares of the technology company’s stock valued at $104,000 after purchasing an additional 841 shares during the period. Essential Partners LLC increased its position in Varonis Systems by 72.5% in the first quarter. Essential Partners LLC now owns 2,054 shares of the technology company’s stock worth $44,000 after buying an additional 863 shares during the last quarter. Finally, Versant Capital Management Inc increased its position in Varonis Systems by 27.3% in the second quarter. Versant Capital Management Inc now owns 4,232 shares of the technology company’s stock worth $178,000 after buying an additional 907 shares during the last quarter. 95.65% of the stock is owned by institutional investors.

Trending Headlines about 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.