Varonis Systems (NASDAQ:VRNS) Downgraded by Barclays to "Hold"

Key Points

• Barclays downgraded Varonis Systems to “Hold” from “Strong Buy,” joining a mostly cautious analyst consensus. Eighteen analysts rate the stock Hold, compared with six Buys and one Sell, with an average price target of $50.94.
• VRNS shares rose 2.9% to $48.72 in Friday trading, leaving limited upside to most revised targets near $49.75–$50.00. The stock remains well below its 52-week high of $63.80.
• Varonis reported quarterly revenue of $180.02 million, up 18.3% year over year and above estimates, while adjusted EPS of $0.04 beat expectations by $0.03. Despite the earnings beat, the company continues to report negative net margin and return on equity.

Varonis Systems (NASDAQ:VRNS - Get Free Report) was downgraded by equities research analysts at Barclays from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Friday, Zacks reports.

VRNS has been the topic of several other reports. Rosenblatt Securities reissued a "neutral" rating and issued a $49.75 target price (down from $55.00) on shares of Varonis Systems in a research report on Friday. Truist Financial increased their price objective on shares of Varonis Systems from $34.00 to $52.00 and gave the stock a "buy" rating in a research note on Tuesday, July 21st. Wells Fargo & Company reaffirmed an "equal weight" rating and set a $49.75 target price (down from $53.00) on shares of Varonis Systems in a research note on Friday. Piper Sandler reissued a "neutral" rating and issued a $49.75 price target (down from $58.00) on shares of Varonis Systems in a report on Friday. Finally, New Street Research reissued 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 given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $50.94.

Varonis Systems Stock Up 2.9%

NASDAQ:VRNS traded up $1.38 during trading hours on Friday, hitting $48.72. The company's stock had a trading volume of 36,254,825 shares, compared to its average volume of 1,595,944. The stock has a market capitalization of $5.60 billion, a P/E ratio of -39.61 and a beta of 0.77. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 1.02. Varonis Systems has a 52-week low of $19.70 and a 52-week high of $63.80. The stock has a fifty day moving average of $45.81 and a 200-day moving average of $37.96.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $176.83 million. During the same period in the previous year, the business posted $0.03 earnings per share. Varonis Systems's quarterly revenue was up 18.3% on a year-over-year basis. 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 analysts forecast that Varonis Systems will post -0.95 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of VRNS. Quantinno Capital Management LP increased its holdings in shares of Varonis Systems by 59.0% in the first quarter. Quantinno Capital Management LP now owns 76,843 shares of the technology company's stock valued at $1,650,000 after purchasing an additional 28,512 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Varonis Systems by 218.4% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,409,487 shares of the technology company's stock worth $30,262,000 after buying an additional 966,817 shares during the last quarter. California State Teachers Retirement System grew its stake in Varonis Systems by 23.1% in the first quarter. California State Teachers Retirement System now owns 132,215 shares of the technology company's stock valued at $2,839,000 after acquiring an additional 24,775 shares during the period. Trillium Asset Management LLC acquired a new stake in shares of Varonis Systems during the second quarter worth about $3,477,000. Finally, Bank of New York Mellon Corp lifted its stake in Varonis Systems by 17.1% in the first quarter. Bank of New York Mellon Corp now owns 552,203 shares of the technology company's stock valued at $11,856,000 after buying an additional 80,743 shares in the last quarter. Institutional investors own 95.65% of the company's stock.

More Varonis Systems News

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

Varonis Systems Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.