Varonis Systems (NASDAQ:VRNS) Stock Rating Cut to “Hold” at Piper Sandler

Piper Sandler downgraded shares of Varonis Systems (NASDAQ:VRNS) from a strong-buy rating to a hold rating in a report issued on Thursday,Zacks reports.

A number of other analysts have also issued reports on VRNS. Truist Financial boosted their price target on Varonis Systems from $34.00 to $52.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. Citigroup raised their price objective on Varonis Systems from $45.00 to $49.75 and gave the stock a “neutral” rating in a report on Friday. JPMorgan Chase & Co. lifted their target price on Varonis Systems from $39.00 to $55.00 and gave the company an “overweight” rating in a research report on Monday, July 27th. B. Riley Financial cut Varonis Systems from a “strong-buy” rating to a “hold” rating in a report on Friday. Finally, New Street Research reiterated a “buy” rating on shares of Varonis Systems in a report on Wednesday, July 29th. Six investment analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $50.94.

Varonis Systems Trading Up 2.9%

VRNS traded up $1.38 on Thursday, reaching $48.72. 36,254,825 shares of the company traded hands, compared to its average volume of 1,595,944. The company has a market cap of $5.60 billion, a P/E 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. Varonis Systems has a one year low of $19.70 and a one year high of $63.80. The firm has a fifty day simple moving average of $45.81 and a two-hundred day simple moving average of $37.96.

Varonis Systems (NASDAQ:VRNS) last issued its earnings results on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of $0.01 by $0.03. The business had revenue of $180.02 million for the quarter, compared to the consensus estimate of $176.83 million. Varonis Systems had a negative net margin of 20.55% and a negative return on equity of 19.18%. The company’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm 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. As a group, equities research analysts expect that Varonis Systems will post -0.95 earnings per share for the current year.

Hedge Funds Weigh In On Varonis Systems

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Assenagon Asset Management S.A. lifted its holdings in Varonis Systems by 417.3% during the third quarter. Assenagon Asset Management S.A. now owns 89,971 shares of the technology company’s stock worth $4,269,000 after buying an additional 72,577 shares during the period. State of Alaska Department of Revenue purchased a new position in shares of Varonis Systems in the 3rd quarter valued at $247,000. Sequoia Financial Advisors LLC purchased a new position in shares of Varonis Systems in the 2nd quarter valued at $204,000. WINTON GROUP Ltd purchased a new position in shares of Varonis Systems in the 2nd quarter valued at $306,000. Finally, Engineers Gate Manager LP bought a new position in shares of Varonis Systems in the 2nd quarter worth $1,441,000. 95.65% of the stock is currently owned by institutional investors.

Key Varonis Systems News

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.