Citigroup Lowers Varonis Systems (NASDAQ:VRNS) Price Target to $28.00

Varonis Systems (NASDAQ:VRNS) had its target price cut by equities research analysts at Citigroup from $37.00 to $28.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has a “neutral” rating on the technology company’s stock. Citigroup’s target price points to a potential upside of 15.50% from the company’s current price.

VRNS has been the topic of several other reports. Barclays dropped their price objective on Varonis Systems from $50.00 to $45.00 and set an “overweight” rating on the stock in a report on Monday, January 5th. Zacks Research raised shares of Varonis Systems from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 11th. DA Davidson decreased their price target on shares of Varonis Systems from $55.00 to $40.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 29th. Wedbush lowered their price target on Varonis Systems from $53.00 to $35.00 and set an “outperform” rating on the stock in a research note on Wednesday. Finally, TD Cowen lifted their target price on shares of Varonis Systems from $62.00 to $68.00 and gave the stock a “buy” rating in a research note on Friday, October 17th. Fifteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Varonis Systems has an average rating of “Moderate Buy” and an average target price of $45.75.

Varonis Systems Stock Performance

NASDAQ VRNS traded down $2.29 during trading hours on Wednesday, reaching $24.24. The stock had a trading volume of 8,803,289 shares, compared to its average volume of 2,950,942. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.81 and a current ratio of 1.81. Varonis Systems has a 52-week low of $20.06 and a 52-week high of $63.90. The stock has a fifty day moving average of $32.99 and a 200 day moving average of $45.77. The stock has a market cap of $2.86 billion, a P/E ratio of -23.66 and a beta of 0.58.

Varonis Systems (NASDAQ:VRNS) last released its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.05. The company had revenue of $173.37 million during the quarter, compared to analysts’ expectations of $168.66 million. Varonis Systems had a negative net margin of 18.82% and a negative return on equity of 21.91%. The firm’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.18 earnings per share. Varonis Systems has set its FY 2026 guidance at 0.060-0.100 EPS and its Q1 2026 guidance at -0.060–0.050 EPS. Sell-side analysts predict that Varonis Systems will post -0.83 earnings per share for the current year.

Hedge Funds Weigh In On Varonis Systems

Several institutional investors and hedge funds have recently made changes to their positions in the business. Bessemer Group Inc. grew its holdings in shares of Varonis Systems by 179.1% in the 2nd quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock worth $25,000 after acquiring an additional 317 shares during the last quarter. Allworth Financial LP grew its position in shares of Varonis Systems by 201.3% during the 3rd quarter. Allworth Financial LP now owns 693 shares of the technology company’s stock worth $40,000 after buying an additional 463 shares during the period. Neo Ivy Capital Management acquired a new position in Varonis Systems in the third quarter valued at approximately $42,000. First Horizon Corp bought a new stake in shares of Varonis Systems during the 3rd quarter valued at $45,000. Finally, Westside Investment Management Inc. grew its stake in shares of Varonis Systems by 100.0% during the third quarter. Westside Investment Management Inc. now owns 844 shares of the technology company’s stock worth $49,000 after purchasing an additional 422 shares during the period. 95.65% of the stock is currently owned by hedge funds and other institutional investors.

Varonis Systems News Roundup

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

• Positive Sentiment: Q4 results beat consensus and showed SaaS momentum — Varonis reported EPS of $0.08 (vs. $0.03 estimate) and revenue of $173.4M, driven by ARR growth and cloud/AI adoption. This supports the narrative of accelerating SaaS conversion and recurring revenue strength. Varonis Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
• Positive Sentiment: Upbeat FY‑2026 guidance — management gave FY‑2026 EPS guidance of $0.06–$0.10 and revenue guidance above Street estimates, implying the company expects SaaS-driven margin/leverage to improve next year. That guidance contrasts with prior expectations and is a near‑term growth catalyst. Varonis Press Release / Guidance
• Positive Sentiment: Acquisition to add AI TRiSM capability — Varonis agreed to buy AllTrue.ai (reported valuation ~$150M), expanding its AI governance/security footprint and complementing data+identity strengths; strategic for enterprise AI security adoption. Varonis Acquisition of AllTrue.ai Valued at $150 Million
• Neutral Sentiment: Analysts cut price targets but kept buy/outperform stances — Several firms (Wedbush, B. Riley, Needham, Truist) lowered targets substantially while retaining positive ratings, a mixed signal: they continue to see upside over time but now price in more near‑term risk/uncertainty. Benzinga (analyst target coverage) TickerReport (B. Riley)
• Neutral Sentiment: Full earnings / call disclosure available — Investors can review the transcript and slide deck for management commentary on conversion cadence, margin trajectory and AI product roadmap to judge sustainability of the beat. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Unusual bearish options activity — Traders bought ~4,051 put contracts today (≈+206% vs. average), signaling short‑term downside hedging/speculation that can amplify selling pressure.
• Negative Sentiment: Renewed securities‑litigation reminders — Multiple law firms have publicized class‑action deadlines and filings alleging misstatements around the SaaS transition; ongoing legal risk increases uncertainty and can weigh on the stock until resolved. Bragar Eagel & Squire reminder
• Negative Sentiment: Margin pressure and transition risk noted — Deep‑dive coverage flags that SaaS conversion is boosting growth but compressing near‑term margins, a dynamic that can justify mixed investor reactions despite revenue upside. Q4 deep dive: SaaS transition drives growth, margin pressures remain

About Varonis Systems

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.