Varonis Systems (NASDAQ:VRNS) Downgraded by Barclays to Hold

Barclays lowered shares of Varonis Systems (NASDAQ:VRNS) from a strong-buy rating to a hold rating in a research report released on Friday morning,Zacks reports.

A number of other analysts have also weighed in on the company. New Street Research reaffirmed a “buy” rating on shares of Varonis Systems in a research report on Wednesday, July 29th. Citigroup lifted their target price on Varonis Systems from $45.00 to $49.75 and gave the company a “neutral” rating in a report on Friday. Royal Bank Of Canada cut Varonis Systems from an “outperform” rating to a “neutral” rating in a research note on Friday. Rosenblatt Securities restated a “neutral” rating and set a $49.75 price target (down from $55.00) on shares of Varonis Systems in a report on Friday. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Varonis Systems in a report on Friday. Six investment analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $50.94.

Varonis Systems Stock Up 2.9%

Shares of VRNS stock traded up $1.38 during trading on Friday, reaching $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 company has a market capitalization of $5.60 billion, a price-to-earnings ratio of -39.61 and a beta of 0.77. The stock’s 50-day moving average price is $45.81 and its 200 day moving average price is $37.96. Varonis Systems has a 1-year low of $19.70 and a 1-year high of $63.80.

Varonis Systems (NASDAQ:VRNS) last released 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. The company had revenue of $180.02 million for the quarter, compared to analyst estimates of $176.83 million. Varonis Systems had a negative net margin of 20.55% and a negative return on equity of 19.18%. The firm’s quarterly revenue was up 18.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.03 EPS. 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, research analysts anticipate that Varonis Systems will post -0.95 EPS for the current year.

Hedge Funds Weigh In On Varonis Systems

Institutional investors and hedge funds have recently modified their holdings of the company. Assenagon Asset Management S.A. raised its stake 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 buying an additional 72,577 shares in the last quarter. State of Alaska Department of Revenue acquired a new position in shares of Varonis Systems during the 3rd quarter worth about $247,000. Sequoia Financial Advisors LLC acquired a new position in shares of Varonis Systems during the 2nd quarter worth about $204,000. WINTON GROUP Ltd purchased a new position in shares of Varonis Systems in the 2nd quarter valued at about $306,000. Finally, Engineers Gate Manager LP purchased a new position in shares of Varonis Systems in the 2nd quarter valued at about $1,441,000. Institutional investors and hedge funds own 95.65% of the company’s stock.

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.