Varonis Systems (NASDAQ:VRNS) Stock Gets Downgrade from Barclays

Varonis Systems (NASDAQ:VRNS) was downgraded by research analysts at Barclays from a “strong-buy” rating to a “hold” rating in a report issued on Friday, Zacks reports.

Several other brokerages also recently commented on VRNS. New Street Research reissued a “buy” rating on shares of Varonis Systems in a research note on Wednesday, July 29th. Citigroup lifted their price target on Varonis Systems from $45.00 to $49.75 and gave the company a “neutral” rating in a research note on Friday. Royal Bank Of Canada downgraded Varonis Systems from an “outperform” rating to a “neutral” rating in a research note on Friday. Piper Sandler reiterated a “neutral” rating and issued a $49.75 price objective (down from $58.00) on shares of Varonis Systems in a report on Friday. Finally, Truist Financial lifted their target price on shares of Varonis Systems from $34.00 to $52.00 and gave the stock a “buy” rating in a research report on Tuesday, July 21st. Six analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Varonis Systems has a consensus rating of “Hold” and an average target price of $50.94.

Varonis Systems Stock Performance

Shares of VRNS stock traded up $1.38 during midday trading on Friday, hitting $48.72. 36,254,825 shares of the company were exchanged, compared to its average volume of 1,595,944. Varonis Systems has a 52 week low of $19.70 and a 52 week high of $63.80. The firm has a market capitalization of $5.60 billion, a P/E ratio of -39.61 and a beta of 0.77. The firm’s 50 day moving average price is $45.81 and its two-hundred day moving average price is $37.96. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.65 and a current 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 (EPS) 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 firm had revenue of $180.02 million for the quarter, compared to analyst estimates of $176.83 million. During the same quarter in the prior year, the business posted $0.03 EPS. The business’s revenue was up 18.3% compared to the same quarter last year. 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. As a group, equities research analysts anticipate that Varonis Systems will post -0.95 earnings per share for the current year.

Institutional Investors Weigh In On Varonis Systems

Institutional investors have recently made changes to their positions in the stock. Assenagon Asset Management S.A. boosted its holdings in Varonis Systems by 417.3% in the third quarter. Assenagon Asset Management S.A. now owns 89,971 shares of the technology company’s stock valued at $4,269,000 after acquiring an additional 72,577 shares during the last quarter. State of Alaska Department of Revenue acquired a new stake in Varonis Systems during the 3rd quarter valued at approximately $247,000. Sequoia Financial Advisors LLC bought a new position in Varonis Systems during the 2nd quarter worth approximately $204,000. WINTON GROUP Ltd bought a new position in Varonis Systems during the 2nd quarter worth approximately $306,000. Finally, Engineers Gate Manager LP acquired a new position in shares of Varonis Systems in the 2nd quarter worth approximately $1,441,000. 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: 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

About Varonis Systems

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.