Varonis Systems (NASDAQ:VRNS) Cut to “Hold” at Jefferies Financial Group

Jefferies Financial Group lowered shares of Varonis Systems (NASDAQ:VRNS) from a buy rating to a hold rating in a research report sent to investors on Friday, MarketBeat reports. They currently have $49.75 target price on the technology company’s stock, down from their prior target price of $60.00.

VRNS has been the topic of several other research reports. Needham & Company LLC cut shares of Varonis Systems from a “buy” rating to a “hold” rating in a report on Friday. TD Cowen lifted their price target on shares of Varonis Systems from $53.00 to $56.00 and gave the stock a “buy” rating in a research note on Tuesday, October 13th. Weiss Ratings cut shares of Varonis Systems from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, October 9th. Rosenblatt Securities lowered shares of Varonis Systems from a “buy” rating to a “hold” rating and reduced their price objective for the company from $55.00 to $49.75 in a report on Friday. Finally, Wedbush lifted their price objective on shares of Varonis Systems from $46.00 to $49.75 and gave the stock a “neutral” rating in a research report on Friday. Six research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $50.94.

Varonis Systems Price Performance

Shares of NASDAQ VRNS opened at $48.72 on Friday. The stock’s 50-day moving average is $45.81 and its two-hundred day moving average is $38.08. 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 1-year low of $19.70 and a 1-year high of $63.80. The company has a market cap of $5.60 billion, a price-to-earnings ratio of -39.61 and a beta of 0.77.

Varonis Systems (NASDAQ:VRNS) last posted its quarterly 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 company had revenue of $180.02 million for the quarter, compared to analyst estimates 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 quarter last year, the company earned $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. Analysts forecast that Varonis Systems will post -0.95 EPS for the current fiscal year.

Hedge Funds Weigh In On Varonis Systems

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

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.