Varonis Systems’ (VRNS) Equal Weight Rating Reiterated at Morgan Stanley

Morgan Stanley reiterated their equal weight rating on shares of Varonis Systems (NASDAQ:VRNS) in a research note issued to investors on Monday morning, Marketbeat Ratings reports. Morgan Stanley currently has a $41.00 price target on the technology company’s stock, down from their prior price target of $44.00.

Several other equities research analysts have also recently commented on VRNS. Cantor Fitzgerald reiterated an “overweight” rating on shares of Varonis Systems in a research report on Wednesday, January 7th. Zacks Research raised shares of Varonis Systems from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 11th. Piper Sandler upgraded shares of Varonis Systems from a “neutral” rating to an “overweight” rating and upped their target price for the company from $45.00 to $47.00 in a research report on Monday, January 5th. Truist Financial restated a “buy” rating and issued a $50.00 price target (down from $70.00) on shares of Varonis Systems in a research report on Wednesday, October 29th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Varonis Systems in a report on Wednesday, January 21st. Fifteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $53.50.

Varonis Systems Trading Down 2.3%

Shares of VRNS opened at $33.41 on Monday. The stock’s fifty day simple moving average is $33.20 and its 200-day simple moving average is $46.40. The firm has a market capitalization of $3.94 billion, a PE ratio of -32.75 and a beta of 0.56. Varonis Systems has a 12-month low of $30.02 and a 12-month high of $63.90. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.75.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings data on Tuesday, October 28th. The technology company reported $0.06 EPS for the quarter, hitting analysts’ consensus estimates of $0.06. Varonis Systems had a negative return on equity of 21.91% and a negative net margin of 18.82%.The firm had revenue of $161.58 million during the quarter, compared to analyst estimates of $166.47 million. During the same period last year, the company earned $0.10 earnings per share. The company’s revenue was up 9.1% on a year-over-year basis. As a group, research analysts predict that Varonis Systems will post -0.83 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Bessemer Group Inc. lifted its stake in Varonis Systems by 179.1% in 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 during the last quarter. Signaturefd LLC raised its stake in Varonis Systems by 47.8% in the fourth quarter. Signaturefd LLC now owns 995 shares of the technology company’s stock valued at $33,000 after buying an additional 322 shares during the period. Allworth Financial LP raised its stake in 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 acquired a new stake in shares of Varonis Systems in the third quarter valued at approximately $42,000. Finally, First Horizon Corp bought a new position in shares of Varonis Systems during the 3rd quarter worth approximately $45,000. 95.65% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Varonis Systems

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

• Negative Sentiment: Hagens Berman says it is scrutinizing Varonis over allegations that executives misled the market about the company’s ability to convert on‑prem customers to its new SaaS platform; lead‑plaintiff deadline set for March 9, 2026. VRNS Investor Alert: Hagens Berman Scrutinizing Varonis Systems (VRNS) Amid Claims of Alleged SaaS Transition Fraud in Securities Class Action
• Negative Sentiment: Hagens Berman published a related release saying the class action follows Varonis’ Oct. 28 disclosure of weaker renewals/conversions and ARR revisions that previously drove shares down ~48% — highlighting the factual basis for investor claims. Varonis Systems, Inc. (VRNS) Hit with Securities Class Action Amid Renewal and ARR Concerns
• Negative Sentiment: Multiple national plaintiff firms (Levi & Korsinsky; Faruqi & Faruqi; Berger Montague; Rosen; Robbins; Pomerantz; Bernstein Liebhard; Schall; Bronstein; Robbins Geller, etc.) are soliciting clients and reminding investors of the March 9 lead‑plaintiff deadline — increasing the likelihood of consolidated litigation and investor scrutiny. Representative notices: Levi & Korsinsky Reminder Faruqi & Faruqi Notice Berger Montague Reminder
• Negative Sentiment: Practical investor impact — litigation raises potential for multi‑year legal costs, settlement risk, reputational damage and management distraction. These risks can weigh on valuation and increase volatility until there is a clear legal outcome or material operational progress on renewals/SaaS conversion. (No separate article link)

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.