Piper Sandler Reaffirms "Neutral" Rating for Varonis Systems (NASDAQ:VRNS)

Key Points

• Piper Sandler maintained a “Neutral” rating on Varonis Systems but cut its price target to $49.75 from $58.00, implying roughly 2.15% upside from the prior close.
• Proofpoint agreed to acquire Varonis for $49.75 per share in cash, valuing the transaction at approximately $6.3 billion and providing shareholders with a defined cash exit.
• Varonis shares closed at $48.70 after rising $1.36, while options activity surged to about 186% above average call volume amid acquisition-related speculation; analysts’ consensus rating remains “Hold,” with a $50.45 average target.

Varonis Systems (NASDAQ:VRNS - Get Free Report)'s stock had its "neutral" rating reiterated by research analysts at Piper Sandler in a report released on Friday, Benzinga reports. They currently have a $49.75 price objective on the technology company's stock, down from their previous price objective of $58.00. Piper Sandler's price target would indicate a potential upside of 2.15% from the company's previous close.

VRNS has been the subject of a number of other research reports. Citigroup lifted their target price on shares of Varonis Systems from $30.00 to $45.00 and gave the stock a "neutral" rating in a research report on Thursday, July 30th. JPMorgan Chase & Co. increased their price target on shares of Varonis Systems from $39.00 to $55.00 and gave the company an "overweight" rating in a research report on Monday, July 27th. Wedbush raised their price objective on shares of Varonis Systems from $46.00 to $49.75 and gave the stock a "neutral" rating in a research note on Friday. Stephens raised shares of Varonis Systems from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $33.00 to $45.00 in a research note on Wednesday, June 24th. Finally, DA Davidson restated a "neutral" rating and set a $49.75 price objective (down from $55.00) on shares of Varonis Systems in a research report on Friday. Nine research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $50.45.

Varonis Systems Price Performance

Varonis Systems stock traded up $1.36 during trading hours on Friday, hitting $48.70. The stock had a trading volume of 26,822,827 shares, compared to its average volume of 2,535,241. 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 stock has a market capitalization of $5.59 billion, a price-to-earnings ratio of -39.60 and a beta of 0.77. Varonis Systems has a 1-year low of $19.70 and a 1-year high of $63.80. The stock's fifty day moving average is $45.71 and its two-hundred day moving average is $37.89.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share for the quarter, beating analysts' consensus estimates of $0.01 by $0.03. The business had revenue of $180.02 million during the quarter, compared to analysts' expectations of $176.83 million. Varonis Systems had a negative return on equity of 19.18% and a negative net margin of 20.55%. The business's revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter last year, the business posted $0.03 earnings per share. 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. As a group, analysts predict that Varonis Systems will post -0.95 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Assenagon Asset Management S.A. boosted its stake in shares of Varonis Systems by 417.3% during 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 during the last quarter. State of Alaska Department of Revenue acquired a new position in shares of Varonis Systems in the third quarter valued at approximately $247,000. Sequoia Financial Advisors LLC purchased a new position in shares of Varonis Systems during the second quarter valued at approximately $204,000. WINTON GROUP Ltd purchased a new position in shares of Varonis Systems during the second quarter valued at approximately $306,000. Finally, Engineers Gate Manager LP purchased a new position in shares of Varonis Systems during the second quarter valued at approximately $1,441,000. 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, a Thoma Bravo portfolio company, agreed to acquire Varonis for $49.75 per share in cash. The transaction provides shareholders with a defined cash exit and pushed the stock close to the offer price. Proofpoint to Acquire Varonis in a $6.3 Billion Transaction
• Positive Sentiment: Options activity was unusually strong, with investors purchasing 7,193 Varonis call options—about 186% above average call volume—indicating elevated bullish speculation or hedging related to the acquisition.

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.

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