Varonis Systems (NASDAQ:VRNS) Stock Price Expected to Rise, Robert W. Baird Analyst Says

Key Points

• Robert W. Baird raised Varonis Systems’ price target from $45 to $50 but maintained a neutral rating, implying only 2.72% upside from the prior close. The broader analyst consensus remains “Hold,” with an average target of $50.70.
• Varonis shares traded at $48.67, while the company reported quarterly EPS of $0.04 and revenue of $180.02 million, exceeding analysts’ estimates; revenue increased 18.3% year over year.
• Proofpoint agreed to acquire Varonis for $49.75 per share in cash, limiting standalone valuation uncertainty but leaving little apparent upside beyond the offer price. Shareholder-rights firms have launched investigations into whether the deal fairly values the company.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price objective upped by Robert W. Baird from $45.00 to $50.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the technology company's stock. Robert W. Baird's price target would suggest a potential upside of 2.72% from the stock's previous close.

A number of other brokerages have also commented on VRNS. DA Davidson reiterated a "neutral" rating and issued a $49.75 price objective (down from $55.00) on shares of Varonis Systems in a research report on Friday. TD Cowen reiterated a "hold" rating and issued a $49.75 price target (down from $56.00) on shares of Varonis Systems in a report on Friday. UBS Group lifted their price objective on Varonis Systems from $37.00 to $58.00 and gave the stock a "buy" rating in a research report on Tuesday, July 21st. Rosenblatt Securities reiterated a "neutral" rating and issued a $49.75 price objective (down from $55.00) on shares of Varonis Systems in a research report on Friday. Finally, Truist Financial boosted their price objective on Varonis Systems from $34.00 to $52.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Nine research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $50.70.

Varonis Systems Price Performance

NASDAQ VRNS traded up $1.33 during trading on Friday, reaching $48.67. 28,314,465 shares of the company traded hands, compared to its average volume of 2,541,305. Varonis Systems has a 1-year low of $19.70 and a 1-year high of $63.80. 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 stock's 50 day moving average price is $45.71 and its two-hundred day moving average price is $37.89. The company has a market cap of $5.59 billion, a price-to-earnings ratio of -39.57 and a beta of 0.77.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The technology company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.03. The firm had revenue of $180.02 million during the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.03 EPS. 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 anticipate that Varonis Systems will post -0.95 EPS for the current year.

Hedge Funds Weigh In On Varonis Systems

Several institutional investors have recently modified their holdings of VRNS. Assenagon Asset Management S.A. raised its position in shares of Varonis Systems by 417.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 89,971 shares of the technology company's stock valued at $4,269,000 after acquiring an additional 72,577 shares during the period. State of Alaska Department of Revenue acquired a new position in Varonis Systems during the third quarter valued at approximately $247,000. Sequoia Financial Advisors LLC acquired a new position in Varonis Systems during the second quarter valued at approximately $204,000. WINTON GROUP Ltd bought a new stake in Varonis Systems in the second quarter valued at approximately $306,000. Finally, Engineers Gate Manager LP bought a new stake in Varonis Systems in the second quarter valued at approximately $1,441,000. 95.65% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Varonis Systems

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

• Positive Sentiment: Proofpoint will acquire Varonis for $49.75 per share in cash, providing shareholders with a defined exit value and removing much of the stock’s standalone valuation uncertainty. Proofpoint to Acquire Varonis in a $6.3 Billion Transaction
• Positive Sentiment: RBC said the acquisition makes strategic sense as competition in cybersecurity intensifies, suggesting Proofpoint sees value in combining its platform with Varonis’s data-security capabilities. Varonis Systems Acquisition by Proofpoint Makes Sense
• Neutral Sentiment: Several analysts adjusted their targets to the $49.75 offer price while maintaining neutral, hold, or equal-weight ratings. RBC downgraded Varonis to Sector Perform, while Piper Sandler, TD Cowen, Jefferies, Wells Fargo, DA Davidson, Rosenblatt, and Needham largely reaffirmed cautious ratings. The target-price convergence indicates limited upside beyond the transaction value. RBC Downgrades Varonis Amid Proofpoint Deal
• Neutral Sentiment: Call-option activity was unusually heavy, with investors purchasing 7,193 calls—about 186% of typical volume—indicating elevated trading interest following the deal announcement.
• Negative Sentiment: Shareholder-rights law firms, including Ademi, Halper Sadeh, and Brodsky & Smith, announced investigations into whether the $49.75 price fairly values Varonis and whether the board adequately protected investors. These reviews could create deal-related uncertainty, although no wrongdoing has been established. Ademi LLP Varonis Shareholder Alert

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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