Varonis Systems (NASDAQ:VRNS) Cut to “Hold” at Needham & Company LLC

Needham & Company LLC downgraded shares of Varonis Systems (NASDAQ:VRNS) from a buy rating to a hold rating in a research report released on Friday, MarketBeat.com reports.

Several other brokerages also recently commented on VRNS. UBS Group lifted their target price on shares of Varonis Systems from $37.00 to $58.00 and gave the stock a “buy” rating in a research note on Tuesday, July 21st. Wedbush reissued a “neutral” rating and set a $46.00 price target on shares of Varonis Systems in a research report on Friday, September 11th. Truist Financial increased their price target on shares of Varonis Systems from $34.00 to $52.00 and gave the company a “buy” rating in a research report on Tuesday, July 21st. Susquehanna raised their price target on shares of Varonis Systems from $36.00 to $55.00 and gave the stock a “positive” rating in a report on Wednesday, July 29th. Finally, New Street Research reissued a “buy” rating on shares of Varonis Systems in a report on Wednesday, July 29th. Six investment analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Varonis Systems currently has an average rating of “Hold” and an average target price of $50.94.

Varonis Systems Price Performance

VRNS stock opened at $48.72 on Friday. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.65 and a quick ratio of 1.65. Varonis Systems has a one year low of $19.70 and a one year high of $63.80. The stock has a market cap of $5.60 billion, a PE ratio of -39.61 and a beta of 0.77. The firm has a 50 day simple moving average of $45.81 and a two-hundred day simple moving average of $38.08.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings data on Tuesday, July 28th. The technology company reported $0.04 earnings per share for the quarter, beating analysts’ consensus estimates of $0.01 by $0.03. The company had revenue of $180.02 million for the quarter, compared to analysts’ expectations of $176.83 million. Varonis Systems had a negative return on equity of 19.18% and a negative net margin of 20.55%. Varonis Systems’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period last year, the firm posted $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, analysts predict that Varonis Systems will post -0.95 EPS for the current fiscal year.

Institutional Investors Weigh In On Varonis Systems

A number of institutional investors have recently modified their holdings of VRNS. Pictet Asset Management Holding SA increased its stake in Varonis Systems by 43.4% during the 1st quarter. Pictet Asset Management Holding SA now owns 3,123,056 shares of the technology company’s stock valued at $67,029,000 after purchasing an additional 944,676 shares in the last quarter. American Capital Management Inc. raised its holdings in Varonis Systems by 54.3% in the first quarter. American Capital Management Inc. now owns 2,328,379 shares of the technology company’s stock worth $49,990,000 after buying an additional 819,340 shares during the last quarter. Stephens Investment Management Group LLC lifted its stake in shares of Varonis Systems by 17.9% in the first quarter. Stephens Investment Management Group LLC now owns 1,992,760 shares of the technology company’s stock worth $42,785,000 after buying an additional 302,411 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd bought a new position in shares of Varonis Systems in the second quarter worth approximately $61,262,000. Finally, Senvest Management LLC lifted its stake in shares of Varonis Systems by 406.1% in the first quarter. Senvest Management LLC now owns 1,448,943 shares of the technology company’s stock worth $31,109,000 after buying an additional 1,162,651 shares in the last quarter. 95.65% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Varonis Systems

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.