Varonis Systems (NASDAQ:VRNS) Stock Rating Lowered by B. Riley Financial

Varonis Systems (NASDAQ:VRNS) was downgraded by investment analysts at B. Riley Financial from a “strong-buy” rating to a “hold” rating in a note issued to investors on Friday, Zacks reports.

VRNS has been the topic of a number of other research reports. Piper Sandler reaffirmed a “neutral” rating and set a $49.75 price target (down from $58.00) on shares of Varonis Systems in a research report on Friday. Wells Fargo & Company reiterated an “equal weight” rating and set a $49.75 target price (down from $53.00) on shares of Varonis Systems in a report on Friday. Cantor Fitzgerald restated an “overweight” rating on shares of Varonis Systems in a research note on Friday. TD Cowen reaffirmed a “hold” rating and set a $49.75 price target (down from $56.00) on shares of Varonis Systems in a report on Friday. Finally, Stephens upgraded Varonis Systems from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $33.00 to $45.00 in a report on Wednesday, June 24th. Six equities 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 data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $50.94.

Varonis Systems Price Performance

NASDAQ:VRNS traded up $1.38 on Friday, reaching $48.72. The stock had a trading volume of 36,254,825 shares, compared to its average volume of 1,595,944. The company has a market capitalization of $5.60 billion, a P/E ratio of -39.61 and a beta of 0.77. 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 has a 1-year low of $19.70 and a 1-year high of $63.80. The stock has a fifty day moving average price of $45.81 and a 200-day moving average price of $37.96.

Varonis Systems (NASDAQ:VRNS) last posted its quarterly earnings data on Tuesday, July 28th. The technology company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.03. The firm had revenue of $180.02 million during the quarter, compared to analysts’ expectations 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 quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter last year, the company posted $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. Research analysts forecast that Varonis Systems will post -0.95 EPS for the current year.

Institutional Trading of Varonis Systems

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

More Varonis Systems News

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

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.