Varonis Systems (NASDAQ:VRNS) Cut to Equal Weight at Stephens

Key Points

• Stephens downgraded Varonis Systems from “overweight” to “equal weight,” joining several analysts who recently lowered their ratings or price targets. MarketBeat’s consensus rating is “Hold,” with an average price target of $50.89.
• Varonis shares opened at $49.15, with a 52-week range of $19.70 to $63.80 and a market capitalization of approximately $5.65 billion.
• The company’s latest quarterly results exceeded expectations, reporting $0.04 in adjusted EPS versus a $0.01 estimate and revenue of $180.02 million, up 18.3% year over year; however, Varonis remains unprofitable on a net-margin basis.

Varonis Systems (NASDAQ:VRNS - Get Free Report) was downgraded by equities research analysts at Stephens from an "overweight" rating to an "equal weight" rating in a report released on Tuesday, Marketbeat.com reports.

Several other equities analysts have also issued reports on the company. Piper Sandler reaffirmed a "neutral" rating and set a $49.75 price objective (down from $58.00) on shares of Varonis Systems in a report on Friday, October 16th. B. Riley Financial cut shares of Varonis Systems from a "strong-buy" rating to a "hold" rating in a report on Friday, October 16th. Jefferies Financial Group lowered shares of Varonis Systems from a "buy" rating to a "hold" rating and reduced their price objective for the company from $60.00 to $49.75 in a research note on Friday, October 16th. Needham & Company LLC lowered Varonis Systems from a "buy" rating to a "hold" rating in a research note on Friday, October 16th. Finally, Susquehanna raised their price objective on Varonis Systems from $36.00 to $55.00 and gave the stock a "positive" rating in a research report on Wednesday, July 29th. Five investment analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $50.89.

Varonis Systems Price Performance

VRNS opened at $49.15 on Tuesday. Varonis Systems has a 52-week low of $19.70 and a 52-week high of $63.80. The stock has a market capitalization of $5.65 billion, a P/E ratio of -39.96 and a beta of 0.77. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.65 and a current ratio of 1.65. The company's 50-day simple moving average is $46.32 and its two-hundred day simple moving average is $35.21.

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

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors have recently added to or reduced their stakes in VRNS. Corient Private Wealth LLC raised its position in Varonis Systems by 4.8% during the fourth quarter. Corient Private Wealth LLC now owns 12,717 shares of the technology company's stock valued at $417,000 after acquiring an additional 585 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of Varonis Systems by 161.0% during the 1st 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 during the period. Assetmark Inc. boosted its stake in shares of Varonis Systems by 21.0% in the first quarter. Assetmark Inc. now owns 4,848 shares of the technology company's stock valued at $104,000 after purchasing an additional 841 shares during the period. Essential Partners LLC raised its stake in shares of Varonis Systems by 72.5% in the first quarter. Essential Partners LLC now owns 2,054 shares of the technology company's stock valued at $44,000 after acquiring an additional 863 shares in the last quarter. Finally, Versant Capital Management Inc lifted its stake in Varonis Systems by 27.3% in the second quarter. Versant Capital Management Inc now owns 4,232 shares of the technology company's stock worth $178,000 after acquiring an additional 907 shares during the last quarter. 95.65% of the stock is currently owned by institutional investors and hedge funds.

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.

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