Varonis Systems (NASDAQ:VRNS) Stock Gets Downgrade from Barclays

Varonis Systems (NASDAQ:VRNS) was downgraded by equities researchers at Barclays from an “overweight” rating to an “equal weight” rating in a research report issued on Friday, Marketbeat.com reports. They presently have a $50.00 price objective on the technology company’s stock. Barclays’ target price would indicate a potential upside of 2.70% from the company’s current price.

VRNS has been the topic of a number of other reports. Robert W. Baird lifted their price target on Varonis Systems from $45.00 to $50.00 and gave the company a “neutral” rating in a research note on Friday. TD Cowen lowered Varonis Systems from a “buy” rating to a “hold” rating and cut their price target for the company from $56.00 to $49.75 in a research note on Friday. Jefferies Financial Group lowered Varonis Systems from a “buy” rating to a “hold” rating and cut their price target for the company from $60.00 to $49.75 in a research note on Friday. New Street Research reissued a “buy” rating on shares of Varonis Systems in a research note on Wednesday, July 29th. Finally, Susquehanna lifted their price objective on Varonis Systems from $36.00 to $55.00 and gave the stock a “positive” rating in a research note on Wednesday, July 29th. Six research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Varonis Systems currently has a consensus rating of “Hold” and a consensus price target of $50.89.

Varonis Systems Trading Down 0.0%

Shares of VRNS stock traded down $0.02 during mid-day trading on Friday, reaching $48.68. 6,235,253 shares of the stock traded hands, compared to its average volume of 2,626,256. The stock’s fifty day simple moving average is $45.94 and its two-hundred day simple moving average is $38.27. 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 $5.59 billion, a price-to-earnings ratio of -39.58 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 (NASDAQ:VRNS) last announced its quarterly 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. Varonis Systems had a negative return on equity of 19.18% and a negative net margin of 20.55%. The firm had revenue of $180.02 million for the quarter, compared to analyst estimates of $176.83 million. During the same period last year, the firm posted $0.03 earnings per share. The business’s revenue for the quarter was up 18.3% on a year-over-year basis. 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 anticipate that Varonis Systems will post -0.95 EPS for the current fiscal year.

Hedge Funds Weigh In On Varonis Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC increased its holdings 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 worth $29,000 after purchasing an additional 839 shares in the last quarter. Fifth Third Bancorp increased its holdings in Varonis Systems by 10,694.1% in 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 increased its holdings in Varonis Systems by 72.5% in 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. bought a new stake in Varonis Systems in the second quarter worth approximately $55,000. Finally, Parallel Advisors LLC increased its holdings in Varonis Systems by 1,025.4% in the first quarter. Parallel Advisors LLC now owns 3,320 shares of the technology company’s stock worth $71,000 after purchasing an additional 3,025 shares in the last quarter. 95.65% of the stock is owned by institutional investors and hedge funds.

Varonis Systems News Roundup

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

• Positive Sentiment: Proofpoint agreed to acquire Varonis in a $6.3 billion transaction. Varonis shareholders would receive $49.75 in cash per share, offering transaction certainty and helping explain why VRNS is trading close to that level. Proofpoint to acquire Varonis in a $6.3 billion transaction
• Positive Sentiment: Varonis announced an integration with Collibra’s Enterprise AI Control Plane. The partnership will continuously sync Varonis sensitivity labels into Collibra’s data catalog, helping businesses identify whether data is suitable for artificial intelligence applications. The announcement reinforces Varonis’ positioning in data security and AI governance, although its impact is likely secondary to the pending sale. Varonis and Collibra: Automating Data Governance for AI
• Neutral Sentiment: Barclays reaffirmed its Equal Weight rating and $50 price target. The target is only modestly above the proposed $49.75 acquisition price, indicating limited valuation upside unless the transaction terms improve or the deal does not proceed. Barclays reaffirms $50 target for Varonis Systems stock
• Negative Sentiment: Shareholder law firm Kahn Swick & Foti is investigating the proposed sale. The review will examine whether the $49.75 consideration and sale process adequately serve shareholders, introducing potential legal or execution risk. Varonis Systems investor alert
• Negative Sentiment: Analyst sentiment has weakened. Truist and Barclays were reported as cutting VRNS to Hold, reflecting reduced standalone upside and uncertainty surrounding the acquisition.

Varonis Systems Company Profile

Varonis Systems, Inc develops data security software that helps organizations protect sensitive information, identify security risks and manage access to data. Its platform is designed to secure data stored across on-premises file systems, cloud environments, software-as-a-service applications and other enterprise repositories.

The company’s products support data discovery and classification, access analysis, threat detection, insider-risk monitoring, data loss prevention and security automation.