Stock Traders Purchase Large Volume of Varonis Systems Call Options (NASDAQ:VRNS)

Varonis Systems, Inc. (NASDAQ:VRNS) saw some unusual options trading activity on Friday. Stock investors acquired 7,193 call options on the company. This is an increase of 186% compared to the typical volume of 2,517 call options.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on VRNS. Truist Financial raised their target price on shares of Varonis Systems from $34.00 to $52.00 and gave the stock a “buy” rating in a report on Tuesday, July 21st. Barclays dropped their price target on Varonis Systems from $52.00 to $50.00 and set an “overweight” rating on the stock in a report on Wednesday, July 29th. Piper Sandler reiterated a “neutral” rating and set a $49.75 price objective (down from $58.00) on shares of Varonis Systems in a research report on Friday. B. Riley Financial raised their price objective on Varonis Systems from $45.00 to $55.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Finally, Needham & Company LLC restated a “hold” rating on shares of Varonis Systems in a report on Friday. Nine equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Varonis Systems has an average rating of “Hold” and an average target price of $50.45.

Varonis Systems Trading Up 2.8%

Shares of NASDAQ:VRNS traded up $1.34 during mid-day trading on Friday, hitting $48.69. The stock had a trading volume of 27,569,718 shares, compared to its average volume of 2,537,530. The company’s 50 day moving average is $45.71 and its 200-day moving average is $37.89. Varonis Systems has a 12-month low of $19.70 and a 12-month high of $63.80. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.65 and a current ratio of 1.65. The company has a market cap of $5.59 billion, a PE ratio of -39.58 and a beta of 0.77.

Varonis Systems (NASDAQ:VRNS) last announced 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. The company had revenue of $180.02 million for the quarter, compared to the consensus estimate of $176.83 million. Varonis Systems had a negative net margin of 20.55% and a negative return on equity of 19.18%. The company’s revenue was up 18.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.03 EPS. 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, sell-side analysts predict that Varonis Systems will post -0.95 EPS for the current year.

Hedge Funds Weigh In On Varonis Systems

Large investors have recently made changes to their positions in the business. Assenagon Asset Management S.A. lifted its position in shares of Varonis Systems by 417.3% in the third quarter. Assenagon Asset Management S.A. now owns 89,971 shares of the technology company’s stock worth $4,269,000 after purchasing an additional 72,577 shares in the last quarter. State of Alaska Department of Revenue purchased a new position in Varonis Systems during the third quarter valued at approximately $247,000. Sequoia Financial Advisors LLC purchased a new position in Varonis Systems during the second quarter valued at approximately $204,000. WINTON GROUP Ltd acquired a new position in Varonis Systems in the 2nd quarter valued at approximately $306,000. Finally, Engineers Gate Manager LP acquired a new position in Varonis Systems in the 2nd quarter valued at approximately $1,441,000. Institutional investors and hedge funds own 95.65% of the company’s stock.

Key Headlines Impacting Varonis Systems

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

• Positive Sentiment: Proofpoint, a Thoma Bravo portfolio company, agreed to acquire Varonis for $49.75 per share in cash. The transaction provides shareholders with a defined cash exit and pushed the stock close to the offer price. Proofpoint to Acquire Varonis in a $6.3 Billion Transaction
• Positive Sentiment: Options activity was unusually strong, with investors purchasing 7,193 Varonis call options—about 186% above average call volume—indicating elevated bullish speculation or hedging related to the acquisition.

About Varonis Systems

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.