Varonis Systems (NASDAQ:VRNS) Hits New 52-Week Low on Analyst Downgrade

Varonis Systems, Inc. (NASDAQ:VRNS)’s share price reached a new 52-week low during mid-day trading on Thursday after DA Davidson lowered their price target on the stock from $40.00 to $25.00. DA Davidson currently has a neutral rating on the stock. Varonis Systems traded as low as $20.06 and last traded at $23.67, with a volume of 19819041 shares. The stock had previously closed at $26.53.

A number of other equities research analysts have also issued reports on VRNS. Cantor Fitzgerald cut their target price on shares of Varonis Systems from $50.00 to $35.00 and set an “overweight” rating on the stock in a research note on Wednesday. Weiss Ratings reissued a “sell (d-)” rating on shares of Varonis Systems in a report on Wednesday, January 21st. Barclays cut their price objective on Varonis Systems from $50.00 to $45.00 and set an “overweight” rating on the stock in a research note on Monday, January 5th. Needham & Company LLC reduced their target price on Varonis Systems from $55.00 to $30.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, Royal Bank Of Canada lowered their price target on Varonis Systems from $60.00 to $41.00 and set an “outperform” rating for the company in a report on Monday, January 5th. Sixteen research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $45.25.

Trending Headlines about Varonis Systems

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

• Positive Sentiment: Q4 results beat consensus and showed accelerating SaaS/ARR momentum, supporting the company’s cloud transition story. Analysts and coverage notes point to improving subscription growth as a longer-term positive. Read More.
• Positive Sentiment: Varonis completed a strategic AI/technology acquisition (AllTrue.ai reportedly valued at ~$150M), which could accelerate product differentiation and AI-driven upsell opportunities for its SaaS platform. Read More.
• Positive Sentiment: One shop (DA Davidson) upgraded the stock to “buy” with a $30 target, signaling some buy-side faith that recent weakness may offer a recovery entry. Read More.
• Neutral Sentiment: Multiple major analysts trimmed price targets after the earnings report (JPMorgan, Cantor Fitzgerald, Citigroup, Wedbush, B. Riley, Truist, Needham, etc.). Many kept constructive ratings (buy/overweight) but lowered targets, creating mixed near-term sentiment despite continued longer-term upside in some models. Read More.
• Neutral Sentiment: Earnings guidance and margin commentary appear to have been read as conservative by some investors: top-line SaaS momentum is positive, but margin pressure during the transition keeps near-term profitability unclear. (See earnings call transcript and coverage for details.) Read More.
• Negative Sentiment: A broad wave of securities-law firm notices and at least one filed class action allege the company misled investors about its SaaS transition; multiple firms are soliciting lead plaintiffs with a March 9, 2026 deadline — this increases litigation risk and can pressure the stock and management focus. Read More. | Read More.
• Negative Sentiment: Market positioning turned defensive after the report: unusually large put-option volume and heavy share trading indicate short-term bearish bets and hedging activity, amplifying downside pressure. (Put activity spike reported on Feb. 4.)

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in Varonis Systems during the 2nd quarter worth $65,161,000. Pictet Asset Management Holding SA lifted its stake in Varonis Systems by 99.1% in the fourth quarter. Pictet Asset Management Holding SA now owns 2,178,380 shares of the technology company’s stock valued at $71,480,000 after buying an additional 1,084,267 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of Varonis Systems by 166.7% during the third quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,360,000 shares of the technology company’s stock valued at $78,159,000 after acquiring an additional 850,000 shares during the period. Vanguard Group Inc. grew its position in shares of Varonis Systems by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company’s stock worth $440,119,000 after acquiring an additional 822,925 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its holdings in shares of Varonis Systems by 319.8% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 971,544 shares of the technology company’s stock worth $48,606,000 after acquiring an additional 740,114 shares during the period. Institutional investors and hedge funds own 95.65% of the company’s stock.

Varonis Systems Stock Performance

The firm has a market cap of $2.62 billion, a price-to-earnings ratio of -19.48 and a beta of 0.58. The stock’s fifty day moving average is $32.62 and its two-hundred day moving average is $45.45. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.81 and a current ratio of 1.81.

Varonis Systems (NASDAQ:VRNS) last posted its earnings results on Tuesday, February 3rd. The technology company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.03 by $0.05. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 25.05%. The firm had revenue of $173.37 million during the quarter, compared to analysts’ expectations of $168.66 million. During the same quarter in the prior year, the firm earned $0.18 EPS. Varonis Systems’s quarterly revenue was up 9.4% on a year-over-year basis. Varonis Systems has set its FY 2026 guidance at 0.060-0.100 EPS and its Q1 2026 guidance at -0.060–0.050 EPS. On average, analysts expect that Varonis Systems, Inc. will post -0.83 earnings per share for the current fiscal 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.