Varonis Systems (NASDAQ:VRNS) Upgraded to “Strong-Buy” at Wells Fargo & Company

Wells Fargo & Company upgraded shares of Varonis Systems (NASDAQ:VRNS) to a strong-buy rating in a report issued on Monday morning,Zacks.com reports.

VRNS has been the subject of several other reports. Stephens assumed coverage on shares of Varonis Systems in a research report on Tuesday, December 30th. They set an “equal weight” rating and a $40.00 target price for the company. Piper Sandler upgraded shares of Varonis Systems from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $45.00 to $47.00 in a research report on Monday, January 5th. DA Davidson raised Varonis Systems from a “neutral” rating to a “buy” rating and increased their target price for the company from $25.00 to $30.00 in a research note on Thursday, February 5th. Citigroup lowered their price target on Varonis Systems from $37.00 to $28.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 4th. Finally, Cantor Fitzgerald cut their price objective on Varonis Systems from $50.00 to $35.00 and set an “overweight” rating for the company in a report on Wednesday, February 4th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $43.15.

Varonis Systems Price Performance

NASDAQ:VRNS opened at $23.55 on Monday. The firm has a market capitalization of $2.77 billion, a price-to-earnings ratio of -20.66 and a beta of 0.61. Varonis Systems has a 52-week low of $20.06 and a 52-week high of $63.90. The stock has a fifty day moving average of $29.57 and a 200 day moving average of $41.42. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.97 and a current ratio of 1.97.

Varonis Systems (NASDAQ:VRNS) last announced its earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share for the quarter, topping analysts’ consensus estimates of $0.03 by $0.05. Varonis Systems had a negative return on equity of 22.95% and a negative net margin of 20.74%.The business had revenue of $173.37 million for the quarter, compared to analyst estimates of $168.66 million. During the same period in the prior year, the company earned $0.18 EPS. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. 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, research analysts expect that Varonis Systems will post -0.83 EPS for the current fiscal year.

Insider Activity

In related news, Director Avrohom J. Kess bought 17,800 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The stock was bought at an average cost of $22.29 per share, for a total transaction of $396,762.00. Following the acquisition, the director directly owned 49,403 shares of the company’s stock, valued at $1,101,192.87. The trade was a 56.32% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP David Bass purchased 2,980 shares of Varonis Systems stock in a transaction that occurred on Monday, February 9th. The shares were bought at an average price of $23.47 per share, for a total transaction of $69,940.60. Following the completion of the transaction, the executive vice president owned 1,042,924 shares in the company, valued at $24,477,426.28. The trade was a 0.29% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last three months, insiders have purchased 25,780 shares of company stock valued at $579,403. 2.30% of the stock is currently owned by insiders.

Institutional Trading of Varonis Systems

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in shares of Varonis Systems by 6.5% in the fourth quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company’s stock worth $440,119,000 after purchasing an additional 822,925 shares during the last quarter. First Trust Advisors LP grew its holdings in Varonis Systems by 40.6% in the 4th quarter. First Trust Advisors LP now owns 4,427,245 shares of the technology company’s stock worth $145,214,000 after acquiring an additional 1,279,002 shares during the last quarter. RGM Capital LLC increased its position in shares of Varonis Systems by 17.1% in the fourth quarter. RGM Capital LLC now owns 3,160,093 shares of the technology company’s stock valued at $103,651,000 after acquiring an additional 460,580 shares during the period. Geode Capital Management LLC increased its position in shares of Varonis Systems by 5.7% in the fourth quarter. Geode Capital Management LLC now owns 2,833,180 shares of the technology company’s stock valued at $92,943,000 after acquiring an additional 151,961 shares during the period. Finally, Clearbridge Investments LLC raised its stake in shares of Varonis Systems by 12.1% during the fourth quarter. Clearbridge Investments LLC now owns 2,544,180 shares of the technology company’s stock valued at $83,449,000 after acquiring an additional 273,781 shares during the last quarter. Institutional investors own 95.65% of the company’s stock.

Varonis Systems News Summary

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

• Positive Sentiment: Wells Fargo initiated coverage on VRNS with an “overweight” rating and a $28 price target, which supports near-term upside sentiment and likely helped push the stock higher. Article Title
• Negative Sentiment: Hagens Berman announced an investigation and highlighted allegations that Varonis may have concealed renewal softness in its Federal vertical and legacy on?premises business while promoting a de?risked SaaS transition — a substantive allegation that could increase litigation risk and investor uncertainty. Article Title
• Negative Sentiment: Multiple plaintiff law firms (Rosen, Pomerantz, Bronstein Gewirtz & Grossman, Berger Montague, Faruqi & Faruqi, The Gross Law Firm, Schall, DJS, RGRD and others) have filed notices or solicitations seeking lead plaintiffs in a class action covering purchases between Feb 4, 2025 and Oct 28, 2025; the important lead?plaintiff deadline is March 9, 2026 — a crowded litigation docket that can keep downward pressure on sentiment and increase potential future legal costs. Article Title

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.