Varonis Systems (NASDAQ:VRNS) Given Hold Rating at Jefferies Financial Group

Varonis Systems (NASDAQ:VRNS)‘s stock had its “hold” rating reiterated by equities research analysts at Jefferies Financial Group in a note issued to investors on Friday, Benzinga reports. They presently have a $49.75 price objective on the technology company’s stock, down from their previous price objective of $60.00. Jefferies Financial Group’s target price points to a potential upside of 2.30% from the company’s current price.

Other research analysts also recently issued research reports about the stock. Weiss Ratings downgraded shares of Varonis Systems from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, October 9th. TD Cowen upped their price objective on Varonis Systems from $53.00 to $56.00 and gave the company a “buy” rating in a report on Tuesday. DA Davidson reissued a “neutral” rating and set a $49.75 price target (down from $55.00) on shares of Varonis Systems in a research report on Friday. Robert W. Baird lifted their target price on shares of Varonis Systems from $40.00 to $45.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 29th. Finally, Wells Fargo & Company restated an “equal weight” rating and set a $49.75 price objective (down from $53.00) on shares of Varonis Systems in a research report on Friday. Eleven research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Varonis Systems currently has an average rating of “Hold” and a consensus target price of $51.17.

Varonis Systems Stock Up 2.7%

Shares of NASDAQ:VRNS opened at $48.63 on Friday. Varonis Systems has a one year low of $19.70 and a one year high of $63.80. The company has a 50 day moving average of $45.71 and a 200-day moving average of $37.89. The stock has a market cap of $5.59 billion, a price-to-earnings ratio of -39.54 and a beta of 0.77. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.65 and a quick ratio of 1.65.

Varonis Systems (NASDAQ:VRNS) last announced its earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share for the quarter, topping analysts’ consensus estimates 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 business had revenue of $180.02 million during the quarter, compared to the consensus estimate of $176.83 million. During the same quarter last year, the firm earned $0.03 earnings per share. Varonis Systems’s quarterly revenue 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, sell-side analysts forecast that Varonis Systems will post -0.95 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. American Capital Management Inc. acquired a new position in Varonis Systems in the 2nd quarter worth approximately $94,062,000. Clal Insurance Enterprises Holdings Ltd bought a new stake in Varonis Systems during the second quarter worth $61,262,000. Senvest Management LLC boosted its stake in Varonis Systems by 406.1% in the 1st quarter. Senvest Management LLC now owns 1,448,943 shares of the technology company’s stock valued at $31,109,000 after purchasing an additional 1,162,651 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in Varonis Systems by 218.4% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,409,487 shares of the technology company’s stock worth $30,262,000 after buying an additional 966,817 shares in the last quarter. Finally, Pictet Asset Management Holding SA grew its holdings in shares of Varonis Systems by 43.4% during the first quarter. Pictet Asset Management Holding SA now owns 3,123,056 shares of the technology company’s stock worth $67,029,000 after purchasing an additional 944,676 shares during the last quarter. 95.65% of the stock is 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: Proofpoint agreed to acquire Varonis in a definitive all-cash transaction valued at approximately $6.3 billion. The deal price is above Varonis’s recent market price and reduces near-term valuation uncertainty for shareholders. Proofpoint to Acquire Varonis in a $6.3 Billion Transaction
• Neutral Sentiment: Analyst targets are converging on the $49.75 acquisition price. Wedbush raised its target from $46 to $49.75 while retaining a neutral rating; Wells Fargo, DA Davidson and Rosenblatt reaffirmed neutral or equal-weight ratings with targets at $49.75. Needham maintained its hold rating. These actions imply modest upside but limited standalone upside beyond the offer price.
• Neutral Sentiment: RBC downgraded Varonis from outperform to sector perform and lowered its target from $52 to $49.75, citing the Proofpoint transaction. The move reflects the reduced importance of Varonis’s independent operating outlook while the acquisition is pending. RBC Downgrades Varonis Systems Amid Proofpoint Deal
• Negative Sentiment: Shareholder-rights law firms Ademi LLP and Halper Sadeh announced investigations into whether the $49.75 offer fairly values Varonis and whether the board adequately protected investors. Such reviews could increase deal-related scrutiny and introduce uncertainty, although they do not by themselves block the transaction. VRNS 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.