Varonis Systems (NASDAQ:VRNS) Stock Dropped to Hold by Truist Financial

Truist Financial cut shares of Varonis Systems (NASDAQ:VRNS) from a strong-buy rating to a hold rating in a report issued on Friday morning,Zacks reports.

A number of other analysts have also recently commented on the company. Rosenblatt Securities restated a “neutral” rating and issued a $49.75 price target (down from $55.00) on shares of Varonis Systems in a research report on Friday. Piper Sandler reaffirmed 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. Needham & Company LLC reiterated a “hold” rating on shares of Varonis Systems in a research note on Friday. Weiss Ratings downgraded Varonis Systems from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, October 9th. Finally, Citigroup increased their target price on shares of Varonis Systems from $45.00 to $49.75 and gave the stock a “neutral” rating in a report on Friday. Six analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Varonis Systems presently 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 during trading on Friday, hitting $48.72. The company’s stock had a trading volume of 36,254,825 shares, compared to its average volume of 1,595,944. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.65 and a quick ratio of 1.65. The firm has a market cap of $5.60 billion, a price-to-earnings ratio of -39.61 and a beta of 0.77. The company has a 50-day moving average of $45.81 and a 200-day moving average of $37.96. Varonis Systems has a 12 month low of $19.70 and a 12 month high of $63.80.

Varonis Systems (NASDAQ:VRNS) last released its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share for the quarter, topping the consensus estimate of $0.01 by $0.03. The business 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 quarterly revenue was up 18.3% on a year-over-year basis. During the same period last year, the firm earned $0.03 earnings per share. 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 expect that Varonis Systems will post -0.95 earnings per share for the current year.

Hedge Funds Weigh In On Varonis Systems

Several large investors have recently made changes to their positions in the business. American Capital Management Inc. purchased a new stake in shares of Varonis Systems during the second quarter worth about $94,062,000. Clal Insurance Enterprises Holdings Ltd bought a new stake in Varonis Systems during the 2nd quarter valued at approximately $61,262,000. Senvest Management LLC lifted its holdings 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 worth $31,109,000 after purchasing an additional 1,162,651 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in Varonis Systems by 218.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,409,487 shares of the technology company’s stock worth $30,262,000 after purchasing an additional 966,817 shares in the last quarter. Finally, Pictet Asset Management Holding SA lifted its holdings in Varonis Systems by 43.4% in the 1st 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 in the last quarter. 95.65% of the stock is currently owned by hedge funds and other institutional investors.

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

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.