Varonis Systems (NASDAQ:VRNS) Rating Lowered to Hold at Piper Sandler

Varonis Systems (NASDAQ:VRNS) was downgraded by Piper Sandler from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Thursday, Zacks reports.

VRNS has been the topic of several other research reports. Cantor Fitzgerald reiterated an “overweight” rating on shares of Varonis Systems in a research report on Friday. Wedbush raised their price objective on shares of Varonis Systems from $46.00 to $49.75 and gave the stock a “neutral” rating in a report on Friday. Wells Fargo & Company reaffirmed an “equal weight” rating and set a $49.75 price objective (down from $53.00) on shares of Varonis Systems in a research report on Friday. Rosenblatt Securities reiterated a “neutral” rating and set a $49.75 target price (down from $55.00) on shares of Varonis Systems in a report on Friday. Finally, B. Riley Financial downgraded Varonis Systems from a “strong-buy” rating to a “hold” rating in a report on Friday. Six investment analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Varonis Systems presently has an average rating of “Hold” and a consensus price target of $50.94.

Varonis Systems Trading Up 2.9%

NASDAQ VRNS traded up $1.38 on Thursday, hitting $48.72. The company’s stock had a trading volume of 36,254,825 shares, 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 company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 1.02. The company’s 50-day simple moving average is $45.81 and its 200 day simple moving average is $37.96. The firm has a market cap of $5.60 billion, a P/E ratio of -39.61 and a beta of 0.77.

Varonis Systems (NASDAQ:VRNS) last issued its quarterly earnings data on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, topping the consensus estimate 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 business had revenue of $180.02 million during the quarter, compared to analyst estimates of $176.83 million. During the same period in the prior year, the business earned $0.03 EPS. The company’s revenue for the quarter was up 18.3% on a year-over-year basis. 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. Research analysts predict that Varonis Systems will post -0.95 EPS for the current fiscal year.

Institutional Trading of Varonis Systems

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Assenagon Asset Management S.A. increased its stake in shares of Varonis Systems by 417.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 89,971 shares of the technology company’s stock worth $4,269,000 after acquiring an additional 72,577 shares in the last quarter. State of Alaska Department of Revenue bought a new stake in Varonis Systems during the third quarter worth about $247,000. Sequoia Financial Advisors LLC purchased a new stake in Varonis Systems in the second quarter worth about $204,000. WINTON GROUP Ltd purchased a new stake in Varonis Systems in the second quarter worth about $306,000. Finally, Engineers Gate Manager LP purchased a new stake in Varonis Systems in the second quarter worth about $1,441,000. 95.65% of the stock is owned by hedge funds and other institutional investors.

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

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.