Varonis Systems (NASDAQ:VRNS) Cut to Equal Weight at Wells Fargo & Company

Wells Fargo & Company cut shares of Varonis Systems (NASDAQ:VRNS) from an overweight rating to an equal weight rating in a research note issued to investors on Friday morning, MarketBeat reports. The brokerage currently has $49.75 price objective on the technology company’s stock, down from their prior price objective of $53.00.

A number of other research analysts have also weighed in on VRNS. Rosenblatt Securities lowered shares of Varonis Systems from a “buy” rating to a “hold” rating and decreased their price target for the company from $55.00 to $49.75 in a research note on Friday. Weiss Ratings lowered Varonis Systems from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, October 9th. Susquehanna boosted 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. Barclays reduced their target price on Varonis Systems from $52.00 to $50.00 and set an “overweight” rating for the company in a report on Wednesday, July 29th. Finally, New Street Research restated a “buy” rating on shares of Varonis Systems in a research report on Wednesday, July 29th. Six equities research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $50.94.

Varonis Systems Stock Performance

Shares of NASDAQ:VRNS opened at $48.72 on Friday. Varonis Systems has a 1 year low of $19.70 and a 1 year high of $63.80. The firm has a market capitalization of $5.60 billion, a price-to-earnings ratio of -39.61 and a beta of 0.77. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.65 and a quick ratio of 1.65. The business’s 50 day moving average price is $45.81 and its 200-day moving average price is $38.08.

Varonis Systems (NASDAQ:VRNS) last released its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.01 by $0.03. The firm 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 firm’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter last year, the company 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. On average, equities research analysts forecast that Varonis Systems will post -0.95 earnings per share for the current fiscal year.

Institutional Trading of Varonis Systems

A number of hedge funds have recently bought and sold shares of the business. Assenagon Asset Management S.A. lifted its stake in Varonis Systems by 417.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 89,971 shares of the technology company’s stock worth $4,269,000 after purchasing an additional 72,577 shares in the last quarter. State of Alaska Department of Revenue acquired a new position in shares of Varonis Systems during the 3rd quarter worth approximately $247,000. Sequoia Financial Advisors LLC purchased a new stake in shares of Varonis Systems in the second quarter valued at approximately $204,000. WINTON GROUP Ltd purchased a new stake in shares of Varonis Systems in the second quarter valued at approximately $306,000. Finally, Engineers Gate Manager LP acquired a new stake in shares of Varonis Systems in the second quarter valued at approximately $1,441,000. Institutional investors and hedge funds own 95.65% of the company’s stock.

Key Stories 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

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.