Varonis Systems (NASDAQ:VRNS) Shares Gap Up on Analyst Upgrade

Shares of Varonis Systems, Inc. (NASDAQ:VRNS) gapped up before the market opened on Wednesday after Stephens upgraded the stock from an equal weight rating to an overweight rating. The stock had previously closed at $35.03, but opened at $36.35. Stephens now has a $45.00 price target on the stock, up from their previous price target of $33.00. Varonis Systems shares last traded at $36.3230, with a volume of 418,886 shares trading hands.

Several other research firms have also weighed in on VRNS. Wedbush raised their price objective on shares of Varonis Systems from $35.00 to $37.00 and gave the stock an “outperform” rating in a report on Wednesday, April 29th. Citigroup raised their price target on Varonis Systems from $28.00 to $30.00 and gave the company a “neutral” rating in a report on Thursday, April 30th. KeyCorp started coverage on Varonis Systems in a research note on Tuesday, May 26th. They issued a “sector weight” rating on the stock. JPMorgan Chase & Co. increased their target price on Varonis Systems from $38.00 to $39.00 and gave the stock an “overweight” rating in a report on Wednesday, April 29th. Finally, UBS Group raised their target price on Varonis Systems from $30.00 to $37.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Varonis Systems presently has an average rating of “Moderate Buy” and an average price target of $42.15.

Key Headlines Impacting Varonis Systems

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

• Positive Sentiment: Varonis is reportedly evaluating a potential sale after receiving takeover interest from firms including Blackstone, Thoma Bravo, and Vista Equity Partners, which has boosted investor enthusiasm for a possible premium offer. Varonis Systems weighs sale as private equity giants circle: reports
• Positive Sentiment: Stephens upgraded VRNS from “equal weight” to “overweight” and raised its price target to $45 from $33, signaling improved confidence in upside from current levels. Stephens upgrades Varonis Systems
• Positive Sentiment: Needham also raised its price target to $40 from $36 and reiterated a buy rating, adding to the bullish analyst momentum around the name. Needham raises Varonis Systems price target
• Positive Sentiment: Unusual options activity showed heavy call buying, suggesting traders are positioning for additional near-term gains. Unusual options trading activity
• Positive Sentiment: Zacks noted the stock’s strong move on above-average volume and pointed to rising earnings estimate revisions as a factor that could support further upside. Zacks article on Varonis

Institutional Trading of Varonis Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in VRNS. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Varonis Systems during the 1st quarter worth approximately $233,000. Caxton Associates LLP bought a new position in Varonis Systems in the first quarter valued at approximately $200,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Varonis Systems by 11.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 619,257 shares of the technology company’s stock worth $25,049,000 after acquiring an additional 64,636 shares during the period. Russell Investments Group Ltd. grew its holdings in Varonis Systems by 2.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 22,811 shares of the technology company’s stock worth $1,158,000 after acquiring an additional 628 shares during the period. Finally, Invesco Ltd. raised its position in shares of Varonis Systems by 8.6% during the 2nd quarter. Invesco Ltd. now owns 96,536 shares of the technology company’s stock valued at $4,899,000 after acquiring an additional 7,618 shares during the last quarter. 95.65% of the stock is owned by institutional investors.

Varonis Systems Stock Performance

The company has a current ratio of 1.69, a quick ratio of 1.69 and a debt-to-equity ratio of 1.00. The company has a market cap of $4.14 billion, a price-to-earnings ratio of -31.67 and a beta of 0.89. The stock has a 50 day moving average price of $29.47 and a two-hundred day moving average price of $28.56.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings data on Tuesday, April 28th. The technology company reported $0.06 EPS for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.11. The business had revenue of $173.13 million during the quarter, compared to analysts’ expectations of $165.52 million. Varonis Systems had a negative return on equity of 20.27% and a negative net margin of 19.75%.Varonis Systems’s revenue for the quarter was up 26.9% on a year-over-year basis. Varonis Systems has set its FY 2026 guidance at 0.110-0.120 EPS and its Q2 2026 guidance at 0.000-0.010 EPS. Analysts predict that Varonis Systems, Inc. will post -1.04 EPS for the current year.

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.