Varonis Systems (NASDAQ:VRNS) Trading Down 5.8% – Here’s Why

Varonis Systems, Inc. (NASDAQ:VRNS) shares traded down 5.8% during trading on Tuesday . The stock traded as low as $21.57 and last traded at $22.3410. 579,776 shares were traded during mid-day trading, a decline of 82% from the average session volume of 3,199,366 shares. The stock had previously closed at $23.72.

Analyst Upgrades and Downgrades

Several research firms have issued reports on VRNS. Wedbush cut their price objective on Varonis Systems from $53.00 to $35.00 and set an “outperform” rating for the company in a research report on Wednesday, February 4th. William Blair restated a “market perform” rating on shares of Varonis Systems in a research report on Monday. Stephens began coverage on shares of Varonis Systems in a research note on Tuesday, December 30th. They set an “equal weight” rating and a $40.00 price target on the stock. Piper Sandler upgraded shares of Varonis Systems from a “neutral” rating to an “overweight” rating and increased their price target for the company from $45.00 to $47.00 in a report on Monday, January 5th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Varonis Systems has an average rating of “Moderate Buy” and an average target price of $43.15.

Varonis Systems Stock Down 6.6%

The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.76. The firm has a market cap of $2.60 billion, a PE ratio of -19.36 and a beta of 0.62. The firm’s 50 day moving average is $26.87 and its 200-day moving average is $38.07.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 EPS for the quarter, beating 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 during the quarter, compared to the consensus estimate of $168.66 million. During the same quarter in the previous year, the business earned $0.18 earnings per share. The business’s revenue for the quarter 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. As a group, equities research analysts expect that Varonis Systems, Inc. will post -0.83 earnings per share for the current fiscal year.

Insider Buying and Selling at Varonis Systems

In other Varonis Systems news, Director John J. Gavin, Jr. bought 5,000 shares of Varonis Systems stock in a transaction that occurred on Friday, February 6th. The shares were acquired at an average price of $22.54 per share, for a total transaction of $112,700.00. Following the acquisition, the director owned 273,666 shares of the company’s stock, valued at $6,168,431.64. The trade was a 1.86% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Avrohom J. Kess acquired 17,800 shares of Varonis Systems stock in a transaction on Friday, February 6th. The shares were bought at an average price of $22.29 per share, for a total transaction of $396,762.00. Following the purchase, the director owned 49,403 shares of the company’s stock, valued at $1,101,192.87. This represents a 56.32% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 25,780 shares of company stock valued at $579,403 over the last ninety days. Corporate insiders own 2.30% of the company’s stock.

Institutional Trading of Varonis Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Hodges Capital Management Inc. grew its stake in shares of Varonis Systems by 146.3% in the 3rd quarter. Hodges Capital Management Inc. now owns 126,450 shares of the technology company’s stock valued at $7,267,000 after purchasing an additional 75,120 shares during the period. Readystate Asset Management LP bought a new stake in Varonis Systems in the third quarter valued at $13,731,000. Assenagon Asset Management S.A. bought a new position in shares of Varonis Systems during the third quarter valued at $9,496,000. Capital Fund Management S.A. boosted its stake in shares of Varonis Systems by 31.0% in the 2nd quarter. Capital Fund Management S.A. now owns 306,695 shares of the technology company’s stock valued at $15,565,000 after purchasing an additional 72,657 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC increased its position in shares of Varonis Systems by 69.5% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,646,351 shares of the technology company’s stock worth $95,192,000 after purchasing an additional 674,807 shares in the last quarter. Institutional investors own 95.65% of the company’s stock.

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.