Varonis Systems (NASDAQ:VRNS) Upgraded to “Strong-Buy” at Wells Fargo & Company

Varonis Systems (NASDAQ:VRNS) was upgraded by analysts at Wells Fargo & Company to a “strong-buy” rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other equities analysts also recently commented on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. B. Riley Financial decreased their price target on Varonis Systems from $58.00 to $45.00 and set a “buy” rating for the company in a report on Wednesday, February 4th. Zacks Research raised Varonis Systems from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 11th. JPMorgan Chase & Co. dropped their price objective on Varonis Systems from $50.00 to $38.00 and set an “overweight” rating on the stock in a report on Wednesday, February 4th. Finally, Truist Financial decreased their target price on Varonis Systems from $42.00 to $34.00 and set a “buy” rating for the company in a research note on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $43.15.

Varonis Systems Stock Up 2.0%

VRNS stock opened at $23.55 on Monday. The company’s 50 day moving average price is $29.57 and its 200 day moving average price is $41.42. The firm has a market capitalization of $2.77 billion, a price-to-earnings ratio of -20.66 and a beta of 0.61. Varonis Systems has a fifty-two week low of $20.06 and a fifty-two week high of $63.90. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.97 and a current ratio of 1.97.

Varonis Systems (NASDAQ:VRNS) last issued its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.03 by $0.05. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 22.95%. The company had revenue of $173.37 million during the quarter, compared to the consensus estimate of $168.66 million. During the same quarter in the previous year, the firm earned $0.18 earnings per share. The firm’s quarterly revenue was up 9.4% on a year-over-year basis. 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. On average, equities research analysts anticipate that Varonis Systems will post -0.83 EPS for the current fiscal year.

Insider Transactions at Varonis Systems

In other news, Director Avrohom J. Kess purchased 17,800 shares of the business’s stock in a transaction on Friday, February 6th. The shares were bought at an average price of $22.29 per share, with a total value of $396,762.00. Following the completion of the transaction, the director directly owned 49,403 shares in the company, valued at approximately $1,101,192.87. This represents a 56.32% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John J. Gavin, Jr. acquired 5,000 shares of Varonis Systems stock in a transaction on Friday, February 6th. The stock was purchased at an average price of $22.54 per share, with a total value of $112,700.00. Following the purchase, the director owned 273,666 shares of the company’s stock, valued at $6,168,431.64. The trade was a 1.86% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have bought 25,780 shares of company stock worth $579,403. Corporate insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors have recently modified their holdings of VRNS. Dynamic Technology Lab Private Ltd acquired a new stake in Varonis Systems during the 1st quarter worth $233,000. Caxton Associates LLP purchased a new stake in shares of Varonis Systems in the first quarter valued at about $200,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Varonis Systems by 11.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 619,257 shares of the technology company’s stock worth $25,049,000 after buying an additional 64,636 shares during the period. Bessemer Group Inc. grew its holdings in shares of Varonis Systems by 179.1% during the second quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock worth $25,000 after buying an additional 317 shares during the last quarter. Finally, Teacher Retirement System of Texas grew its holdings in shares of Varonis Systems by 8.2% during the second quarter. Teacher Retirement System of Texas now owns 17,791 shares of the technology company’s stock worth $903,000 after buying an additional 1,351 shares during the last quarter. 95.65% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Varonis Systems

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

• Positive Sentiment: Wells Fargo initiated coverage on VRNS with an “overweight” rating and a $28 price target, which supports near-term upside sentiment and likely helped push the stock higher. Article Title
• Negative Sentiment: Hagens Berman announced an investigation and highlighted allegations that Varonis may have concealed renewal softness in its Federal vertical and legacy on‑premises business while promoting a de‑risked SaaS transition — a substantive allegation that could increase litigation risk and investor uncertainty. Article Title
• Negative Sentiment: Multiple plaintiff law firms (Rosen, Pomerantz, Bronstein Gewirtz & Grossman, Berger Montague, Faruqi & Faruqi, The Gross Law Firm, Schall, DJS, RGRD and others) have filed notices or solicitations seeking lead plaintiffs in a class action covering purchases between Feb 4, 2025 and Oct 28, 2025; the important lead‑plaintiff deadline is March 9, 2026 — a crowded litigation docket that can keep downward pressure on sentiment and increase potential future legal costs. Article Title

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.