Varonis Systems (NASDAQ:VRNS) Stock Rating Upgraded by Wedbush

Key Points

• Wedbush upgraded Varonis Systems to a “hold” rating. Despite mixed analyst views, the stock has a consensus “Moderate Buy” rating and an average price target of $49.79.
• Varonis reported quarterly revenue of $180.02 million, up 18.3% year over year, and adjusted EPS of $0.04, beating estimates of $0.01.
• Institutional ownership remains high at 95.65%, with several major investors increasing or initiating positions in the cybersecurity company.

Varonis Systems (NASDAQ:VRNS - Get Free Report) was upgraded by investment analysts at Wedbush to a "hold" rating in a research report issued to clients and investors on Thursday, Zacks reports.

VRNS has been the topic of a number of other reports. Citigroup lifted their price objective on shares of Varonis Systems from $30.00 to $45.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. Weiss Ratings raised shares of Varonis Systems from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, June 30th. Stephens raised shares of Varonis Systems from an "equal weight" rating to an "overweight" rating and raised their price target for the company from $33.00 to $45.00 in a research report on Wednesday, June 24th. Barclays cut their price target on shares of Varonis Systems from $52.00 to $50.00 and set an "overweight" rating on the stock in a report on Wednesday, July 29th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Varonis Systems in a research report on Tuesday. Sixteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $49.79.

Varonis Systems Price Performance

Shares of NASDAQ VRNS opened at $45.12 on Thursday. Varonis Systems has a fifty-two week low of $19.70 and a fifty-two week high of $63.90. The stock has a market cap of $5.18 billion, a price-to-earnings ratio of -36.68 and a beta of 0.82. 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 firm's 50-day simple moving average is $44.24 and its 200 day simple moving average is $33.67.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.01 by $0.03. Varonis Systems had a negative return on equity of 19.18% and a negative net margin of 20.55%.The business had revenue of $180.02 million during the quarter, compared to the consensus estimate of $176.83 million. During the same quarter in the previous year, the business earned $0.03 EPS. The company'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. As a group, research analysts anticipate that Varonis Systems will post -0.97 earnings per share for the current fiscal year.

Institutional Trading of Varonis Systems

Several hedge funds have recently added to or reduced their stakes in VRNS. California State Teachers Retirement System increased its holdings in shares of Varonis Systems by 4,095.8% in the second quarter. California State Teachers Retirement System now owns 5,547,532 shares of the technology company's stock worth $232,774,000 after purchasing an additional 5,415,317 shares during the period. American Capital Management Inc. bought a new stake in Varonis Systems during the second quarter valued at $94,062,000. Jacobs Levy Equity Management Inc. bought a new stake in Varonis Systems during the fourth quarter valued at $48,263,000. Clal Insurance Enterprises Holdings Ltd purchased a new position in Varonis Systems during the second quarter worth about $61,262,000. Finally, First Trust Advisors LP grew its position in Varonis Systems by 40.6% during the fourth quarter. First Trust Advisors LP now owns 4,427,245 shares of the technology company's stock worth $145,214,000 after buying an additional 1,279,002 shares in the last quarter. Institutional investors own 95.65% of the company's stock.

Varonis Systems Company Profile

Varonis Systems, Inc NASDAQ: VRNS is a cybersecurity company that helps organizations protect and manage their data. Its platform focuses on securing sensitive information stored across cloud environments, software-as-a-service applications, data centers and other enterprise systems.

The Varonis Data Security Platform provides capabilities for data discovery and classification, access governance, threat detection, data activity monitoring and automated remediation. Its products are designed to identify sensitive or exposed data, reduce excessive access permissions, detect suspicious behavior and help organizations respond to risks involving files, emails and other unstructured data.

Founded in 2005, Varonis serves businesses and institutions internationally through a combination of direct sales and channel partners.

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