Varonis Systems’ (VRNS) Neutral Rating Reiterated at DA Davidson

DA Davidson reiterated their neutral rating on shares of Varonis Systems (NASDAQ:VRNS) in a research note published on Friday morning,Benzinga reports. The firm currently has a $49.75 price objective on the technology company’s stock, down from their prior price objective of $55.00.

VRNS has been the subject of several other reports. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Varonis Systems in a research note on Tuesday, September 8th. TD Cowen boosted their price objective on shares of Varonis Systems from $53.00 to $56.00 and gave the company a “buy” rating in a research report on Tuesday, October 13th. JPMorgan Chase & Co. increased their target price on shares of Varonis Systems from $39.00 to $55.00 and gave the company an “overweight” rating in a research note on Monday, July 27th. Piper Sandler raised their target price on shares of Varonis Systems from $47.00 to $58.00 and gave the stock an “overweight” rating in a report on Wednesday, July 29th. Finally, Truist Financial lifted their price target on shares of Varonis Systems from $34.00 to $52.00 and gave the stock a “buy” rating in a research note on Tuesday, July 21st. Six analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Varonis Systems has an average rating of “Hold” and a consensus target price of $50.94.

Varonis Systems Price Performance

NASDAQ:VRNS opened at $48.72 on Friday. The firm has a market capitalization of $5.60 billion, a price-to-earnings ratio of -39.61 and a beta of 0.77. 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 business has a 50 day simple moving average of $45.81 and a 200-day simple moving average of $38.08. 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 for the quarter, beating the consensus estimate of $0.01 by $0.03. Varonis Systems had a negative return on equity of 19.18% and a negative net margin of 20.55%. The firm had revenue of $180.02 million for the quarter, compared to the consensus estimate of $176.83 million. During the same quarter in the previous year, the company posted $0.03 EPS. The company’s revenue for the quarter was up 18.3% compared to the same quarter last year. 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. Equities analysts forecast that Varonis Systems will post -0.95 EPS for the current year.

Institutional Trading of Varonis Systems

A number of large investors have recently made changes to their positions in VRNS. Assenagon Asset Management S.A. grew its holdings in shares of 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 worth $4,269,000 after purchasing an additional 72,577 shares during the last quarter. State of Alaska Department of Revenue purchased a new position in Varonis Systems in the 3rd quarter worth about $247,000. Sequoia Financial Advisors LLC purchased a new position in Varonis Systems in the 2nd quarter worth about $204,000. WINTON GROUP Ltd bought a new stake in Varonis Systems during the 2nd quarter valued at about $306,000. Finally, Engineers Gate Manager LP bought a new stake in Varonis Systems during the 2nd quarter valued at about $1,441,000. 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

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.