Varonis Systems (NASDAQ:VRNS) Rating Lowered to “Hold” at Rosenblatt Securities

Varonis Systems (NASDAQ:VRNS) was downgraded by equities research analysts at Rosenblatt Securities from a “buy” rating to a “hold” rating in a report released on Friday, MarketBeat reports. They presently have a $49.75 price target on the technology company’s stock, down from their prior price target of $55.00. Rosenblatt Securities’ price target would indicate a potential upside of 2.11% from the company’s current price.

A number of other brokerages have also weighed in on VRNS. Royal Bank Of Canada lowered shares of Varonis Systems from an “outperform” rating to a “neutral” rating in a report on Friday. Stephens raised shares of Varonis Systems from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $33.00 to $45.00 in a research report on Wednesday, June 24th. Barclays dropped their target price on shares of Varonis Systems from $52.00 to $50.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 29th. B. Riley Financial upped their target price on shares of Varonis Systems from $45.00 to $55.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Finally, New Street Research reaffirmed a “buy” rating on shares of Varonis Systems in a research report on Wednesday, July 29th. Six analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $50.94.

Varonis Systems Trading Up 2.9%

Shares of NASDAQ:VRNS traded up $1.38 on Friday, hitting $48.72. 36,254,825 shares of the company’s stock were exchanged, compared to its average volume of 1,595,944. Varonis Systems has a 12 month low of $19.70 and a 12 month high of $63.80. The stock has a market capitalization of $5.60 billion, a price-to-earnings ratio of -39.61 and a beta of 0.77. The business’s 50 day simple moving average is $45.81 and its two-hundred day simple moving average is $37.96. 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 (NASDAQ:VRNS) last issued its earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.01 by $0.03. The firm had revenue of $180.02 million during 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 business’s revenue was up 18.3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.03 earnings per share. 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. Analysts anticipate that Varonis Systems will post -0.95 EPS for the current fiscal year.

Institutional Trading of Varonis Systems

A number of hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC lifted its stake in Varonis Systems by 161.0% in the first quarter. EverSource Wealth Advisors LLC now owns 1,360 shares of the technology company’s stock worth $29,000 after acquiring an additional 839 shares during the period. Fifth Third Bancorp increased its position in Varonis Systems by 10,694.1% during the 1st quarter. Fifth Third Bancorp now owns 1,835 shares of the technology company’s stock valued at $39,000 after purchasing an additional 1,818 shares during the period. Essential Partners LLC increased its position in Varonis Systems by 72.5% during the 1st quarter. Essential Partners LLC now owns 2,054 shares of the technology company’s stock valued at $44,000 after purchasing an additional 863 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Varonis Systems in the 2nd quarter worth approximately $55,000. Finally, Parallel Advisors LLC lifted its position in shares of Varonis Systems by 1,025.4% in the 1st quarter. Parallel Advisors LLC now owns 3,320 shares of the technology company’s stock worth $71,000 after purchasing an additional 3,025 shares during the period. 95.65% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting 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.