Varonis Systems (NASDAQ:VRNS) Shares Gap Down After Analyst Downgrade

Varonis Systems, Inc. (NASDAQ:VRNS)’s stock price gapped down prior to trading on Wednesday after Wedbush lowered their price target on the stock from $53.00 to $35.00. The stock had previously closed at $26.53, but opened at $23.17. Wedbush currently has an outperform rating on the stock. Varonis Systems shares last traded at $21.5470, with a volume of 1,820,645 shares changing hands.

A number of other research analysts have also issued reports on the stock. Truist Financial reduced their target price on shares of Varonis Systems from $42.00 to $34.00 and set a “buy” rating on the stock in a report on Wednesday. JPMorgan Chase & Co. lowered their price objective on Varonis Systems from $62.00 to $50.00 and set an “overweight” rating for the company in a research report on Monday, January 26th. Piper Sandler raised shares of Varonis Systems from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $45.00 to $47.00 in a research report on Monday, January 5th. Robert W. Baird downgraded Varonis Systems from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 29th. Finally, Citigroup reduced their price target on shares of Varonis Systems from $58.00 to $40.00 and set a “neutral” rating on the stock in a research report on Monday, November 3rd. Fifteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $48.20.

Trending Headlines about Varonis Systems

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

• Positive Sentiment: Q4 results beat consensus — EPS $0.08 vs. $0.03 expected and revenue $173.4M vs. $168.7M expected; ARR and SaaS metrics improved and cash flow rose year‑over‑year. Read More.
• Positive Sentiment: FY‑2026 guidance showed a pivot toward profitability (EPS $0.06–$0.10 vs. street at −$0.06) and raised revenue outlook ($722–$730M vs. $718M consensus) — this suggests management expects acceleration from the SaaS transition. Read More.
• Positive Sentiment: Acquisition of AllTrue.ai (AI TRiSM) to extend Varonis into AI security — reported valuation ~$150M, which could help monetize AI governance demand and complement data/access controls. Read More.
• Neutral Sentiment: Analysts trimmed price targets but kept buy ratings — Needham cut its target from $55 to $30; Truist cut from $42 to $34. These cuts reduce upside expectations even though the ratings remain constructive. Read More.
• Negative Sentiment: Multiple law firms have filed or solicited lead‑plaintiff cases alleging disclosure issues tied to the SaaS transition; an active litigation pipeline raises legal risk and potential distraction/costs. Read More.
• Negative Sentiment: Analyst/coverage and deep‑dive pieces highlight margin pressure from the SaaS transition and execution risk — investors remain sensitive to growth vs. margin tradeoffs as Varonis shifts revenue mix. Read More. Read More.

Institutional Trading of Varonis Systems

Several hedge funds have recently added to or reduced their stakes in the business. Bessemer Group Inc. boosted its stake in Varonis Systems by 179.1% during the 2nd quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock valued at $25,000 after purchasing an additional 317 shares in the last quarter. Allworth Financial LP lifted its holdings in shares of Varonis Systems by 201.3% in the third quarter. Allworth Financial LP now owns 693 shares of the technology company’s stock valued at $40,000 after buying an additional 463 shares during the period. Neo Ivy Capital Management bought a new position in Varonis Systems during the third quarter valued at about $42,000. First Horizon Corp acquired a new position in Varonis Systems during the third quarter worth about $45,000. Finally, Westside Investment Management Inc. raised its position in Varonis Systems by 100.0% in the third quarter. Westside Investment Management Inc. now owns 844 shares of the technology company’s stock worth $49,000 after acquiring an additional 422 shares in the last quarter. Institutional investors own 95.65% of the company’s stock.

Varonis Systems Stock Down 13.9%

The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.81 and a current ratio of 1.81. The stock’s fifty day simple moving average is $32.99 and its two-hundred day simple moving average is $45.77. The company has a market capitalization of $2.69 billion, a price-to-earnings ratio of -21.79 and a beta of 0.58.

Varonis Systems (NASDAQ:VRNS) last announced its earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.05. Varonis Systems had a negative net margin of 18.82% and a negative return on equity of 21.91%. The company had revenue of $173.37 million for the quarter, compared to the consensus estimate of $168.66 million. During the same period in the previous year, the business earned $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. On average, sell-side analysts anticipate that Varonis Systems, Inc. will post -0.83 EPS for the current year.

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.