Varonis Systems (NASDAQ:VRNS) Cut to “Hold” at B. Riley Financial

Varonis Systems (NASDAQ:VRNS) was downgraded by B. Riley Financial from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Friday, Zacks reports.

VRNS has been the topic of several other reports. UBS Group boosted their price objective on shares of Varonis Systems from $37.00 to $58.00 and gave the stock a “buy” rating in a research report on Tuesday, July 21st. Citigroup raised their target price on shares of Varonis Systems from $45.00 to $49.75 and gave the company a “neutral” rating in a report on Friday. New Street Research restated a “buy” rating on shares of Varonis Systems in a research report on Wednesday, July 29th. TD Cowen reissued a “hold” rating and set a $49.75 price target (down from $56.00) on shares of Varonis Systems in a research note on Friday. Finally, Stephens upgraded Varonis Systems from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $33.00 to $45.00 in a report on Wednesday, June 24th. Six equities research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $50.94.

Varonis Systems Price Performance

Shares of VRNS traded up $1.38 on Friday, reaching $48.72. The stock had a trading volume of 36,254,825 shares, compared to its average volume of 1,595,944. The firm has a market capitalization of $5.60 billion, a PE ratio of -39.61 and a beta of 0.77. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 1.02. The firm has a 50-day moving average of $45.81 and a 200 day moving average of $37.96. Varonis Systems has a twelve month low of $19.70 and a twelve month high of $63.80.

Varonis Systems (NASDAQ:VRNS) last released its quarterly earnings data 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. The firm had revenue of $180.02 million during the quarter, compared to the consensus estimate 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 quarterly revenue was up 18.3% on a year-over-year basis. During the same period last year, the business 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. Sell-side analysts expect that Varonis Systems will post -0.95 EPS for the current year.

Institutional Trading of Varonis Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. American Capital Management Inc. acquired a new stake in shares of Varonis Systems during the second quarter worth $94,062,000. Pictet Asset Management Holding SA increased its stake in shares of Varonis Systems by 43.4% in the first quarter. Pictet Asset Management Holding SA now owns 3,123,056 shares of the technology company’s stock worth $67,029,000 after acquiring an additional 944,676 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd acquired a new stake in shares of Varonis Systems during the 2nd quarter valued at about $61,262,000. Stephens Investment Management Group LLC increased its stake in shares of Varonis Systems by 17.9% during the 1st quarter. Stephens Investment Management Group LLC now owns 1,992,760 shares of the technology company’s stock worth $42,785,000 after purchasing an additional 302,411 shares during the last quarter. Finally, Senvest Management LLC lifted its position 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 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

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.