Varonis Systems, Inc. (NASDAQ:VRNS) Receives Average Recommendation of “Moderate Buy” from Analysts

Shares of Varonis Systems, Inc. (NASDAQ:VRNS) have been assigned an average recommendation of “Moderate Buy” from the twenty-three research firms that are presently covering the firm, MarketBeat reports. One analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have issued a buy rating on the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $45.2381.

Several equities analysts recently commented on VRNS shares. Cantor Fitzgerald cut their target price on shares of Varonis Systems from $50.00 to $35.00 and set an “overweight” rating for the company in a research note on Wednesday, February 4th. Piper Sandler raised shares of Varonis Systems from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $45.00 to $47.00 in a research report on Monday, January 5th. B. Riley Securities reduced their target price on shares of Varonis Systems from $58.00 to $45.00 and set a “buy” rating for the company in a research note on Wednesday, February 4th. Needham & Company LLC decreased their target price on Varonis Systems from $55.00 to $30.00 and set a “buy” rating on the stock in a research report on Wednesday, February 4th. Finally, Robert W. Baird cut Varonis Systems from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 29th.

Varonis Systems Stock Performance

Shares of Varonis Systems stock traded down $1.32 during trading on Thursday, reaching $24.98. The company’s stock had a trading volume of 560,348 shares, compared to its average volume of 3,857,412. Varonis Systems has a one year low of $20.06 and a one year high of $63.90. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.97 and a current ratio of 1.97. The firm has a market cap of $2.93 billion, a price-to-earnings ratio of -21.92 and a beta of 0.58. The business’s fifty day moving average price is $32.06 and its 200-day moving average price is $44.63.

Varonis Systems (NASDAQ:VRNS) last released its earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (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 firm had revenue of $173.37 million for the quarter, compared to analyst estimates of $168.66 million. During the same quarter last year, the firm posted $0.18 EPS. The company’s 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. As a group, equities research analysts predict that Varonis Systems will post -0.83 earnings per share for the current year.

Varonis Systems News Summary

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

• Positive Sentiment: DA Davidson projects 15%–20% ARR growth for Varonis and expects margins to rebound by 2027 — a bullish revenue trajectory that supports a recovery narrative for recurring SaaS revenue. Read More.
• Positive Sentiment: Multiple insider purchases from directors and executives (Avrohom J. Kess, John J. Gavin Jr., EVP David Bass) signal management confidence and can be viewed as a short‑term positive catalyst. Read More.
• Neutral Sentiment: Analyst and market write‑ups are parsing the Q4 earnings call (SaaS conversion, churn, guidance); helpful for modeling long‑term revenue sustainability but not an immediate binary catalyst. Read More.
• Neutral Sentiment: Coverage updates and lowered price targets (several firms trimmed targets but many maintain Buy/Overweight ratings) keep the stock in a “recovering, but risky” consensus — watch revisions for directional impact. Read More.
• Negative Sentiment: Numerous plaintiff law firms (Hagens Berman, Faruqi & Faruqi, Bernstein Liebhard, Rosen, Kessler Topaz, Levi & Korsinsky, Gross, Bragar Eagel & Squire, etc.) have filed notices and are soliciting lead‑plaintiff applicants in a securities class action alleging Varonis misled investors about its SaaS conversion — legal, financial and reputational risk that can pressure the share price, especially with a March 9, 2026 lead‑plaintiff deadline. Read More.
• Negative Sentiment: Multiple additional class‑action notices and reminders from other firms broaden the public perception of litigation risk and may amplify selling pressure or volatility. Read More.

Insider Buying and Selling

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

Hedge Funds Weigh In On Varonis Systems

A number of hedge funds have recently modified their holdings of the stock. Swiss National Bank boosted its stake in Varonis Systems by 1.8% in the 4th quarter. Swiss National Bank now owns 220,954 shares of the technology company’s stock valued at $7,247,000 after buying an additional 4,000 shares in the last quarter. Xponance LLC boosted its stake in shares of Varonis Systems by 6.2% in the 4th quarter. Xponance LLC now owns 9,212 shares of the technology company’s stock valued at $302,000 after purchasing an additional 539 shares in the last quarter. Empowered Funds LLC acquired a new stake in shares of Varonis Systems in the 4th quarter valued at $37,000. Fox Run Management L.L.C. bought a new stake in shares of Varonis Systems in the 4th quarter worth about $637,000. Finally, CenterBook Partners LP increased its position in shares of Varonis Systems by 843.7% during the 4th quarter. CenterBook Partners LP now owns 82,327 shares of the technology company’s stock worth $2,700,000 after purchasing an additional 73,603 shares in the last quarter. 95.65% of the stock is owned by institutional investors and hedge funds.

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.