Varonis Systems (NASDAQ:VRNS) Stock Rating Reaffirmed as Neutral by DA Davidson

Varonis Systems (NASDAQ:VRNS)‘s stock had its “neutral” rating restated by equities researchers at DA Davidson in a note issued to investors on Friday, Benzinga reports. They currently have a $49.75 target price on the technology company’s stock, down from their prior target price of $55.00. DA Davidson’s price objective suggests a potential upside of 5.09% from the stock’s previous close.

Other equities analysts have also recently issued reports about the stock. Royal Bank Of Canada cut shares of Varonis Systems from an “outperform” rating to a “neutral” rating in a research note on Friday. New Street Research reaffirmed a “buy” rating on shares of Varonis Systems in a research note on Wednesday, July 29th. Needham & Company LLC restated a “hold” rating on shares of Varonis Systems in a research report on Friday. Wells Fargo & Company boosted their price target on Varonis Systems from $48.00 to $53.00 and gave the stock an “overweight” rating in a report on Thursday. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of Varonis Systems in a research note on Tuesday, September 8th. Eleven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $51.25.

Varonis Systems Price Performance

Shares of NASDAQ VRNS opened at $47.34 on Friday. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 1.02. The stock has a market cap of $5.44 billion, a P/E ratio of -38.49 and a beta of 0.77. The stock has a 50 day moving average of $45.71 and a two-hundred day moving average of $37.89. Varonis Systems has a twelve month low of $19.70 and a twelve month high of $63.80.

Varonis Systems (NASDAQ:VRNS) last announced its earnings results on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of $0.01 by $0.03. The business had revenue of $180.02 million for the quarter, compared to analysts’ expectations 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 quarterly revenue was up 18.3% on a year-over-year basis. During the same period in the previous year, the company 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. On average, research analysts forecast that Varonis Systems will post -0.95 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. American Capital Management Inc. acquired a new position in Varonis Systems during the 2nd quarter worth approximately $94,062,000. Pictet Asset Management Holding SA raised its position in shares of Varonis Systems by 43.4% during the 1st quarter. Pictet Asset Management Holding SA now owns 3,123,056 shares of the technology company’s stock valued at $67,029,000 after acquiring an additional 944,676 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd acquired a new stake in shares of Varonis Systems during the second quarter worth $61,262,000. Stephens Investment Management Group LLC raised its stake in Varonis Systems by 17.9% during the first quarter. Stephens Investment Management Group LLC now owns 1,992,760 shares of the technology company’s stock worth $42,785,000 after acquiring an additional 302,411 shares during the period. Finally, Senvest Management LLC lifted its holdings in shares of Varonis Systems by 406.1% in the 1st quarter. Senvest Management LLC now owns 1,448,943 shares of the technology company’s stock worth $31,109,000 after purchasing an additional 1,162,651 shares during the last quarter. Institutional investors and hedge funds own 95.65% of the company’s stock.

Key Varonis Systems News

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

• Positive Sentiment: Proofpoint will pay $49.75 per Varonis share in cash, giving investors a clear takeover valuation and reducing exposure to the company’s standalone operating risks. The announcement drove buying interest in VRNS. Proofpoint to Acquire Varonis in a $6.3 Billion Transaction
• Positive Sentiment: The transaction represents a substantial premium to Varonis’s unaffected trading price and could provide shareholders with near-term value realization, subject to customary closing conditions and approvals. Varonis stock climbs on $6.3 billion Proofpoint deal
• Neutral Sentiment: Before the acquisition announcement, Wells Fargo raised its Varonis price target from $48 to $53 and maintained an “overweight” rating, indicating analysts saw additional value in the business. However, the agreed cash consideration is now the primary reference point for the stock. Wells Fargo raises Varonis price target
• Negative Sentiment: Ademi LLP and Halper Sadeh LLP announced investigations into whether the $49.75-per-share offer fairly values Varonis, whether directors adequately protected shareholders, and whether insiders received preferential benefits. These reviews could create deal-related uncertainty or delay completion, although such announcements do not necessarily indicate that the transaction will be blocked. Ademi LLP investigates Varonis buyout

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.