Varonis Systems' (VRNS) "Hold" Rating Reiterated at TD Cowen

Key Points

• TD Cowen reiterated a “Hold” rating on Varonis Systems while cutting its price target to $49.75 from $56, implying about 2.3% upside from the reported $48.63 share price.
• Analyst sentiment remains mixed but broadly neutral: 10 analysts rate the stock Buy, 14 Hold and one Sell, producing a consensus “Hold” rating and average target of $50.86.
• Proofpoint agreed to acquire Varonis in an all-cash transaction valued at approximately $6.3 billion, or $49.75 per share; analysts have largely aligned their targets with the offer, while shareholder-rights firms are investigating whether the deal fairly values the company.

Varonis Systems (NASDAQ:VRNS - Get Free Report)'s stock had its "hold" rating reissued by analysts at TD Cowen in a report issued on Friday, Benzinga reports. They currently have a $49.75 price objective on the technology company's stock, down from their prior price objective of $56.00. TD Cowen's target price would suggest a potential upside of 2.29% from the stock's current price.

Several other research analysts have also issued reports on the company. Weiss Ratings lowered Varonis Systems from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, October 9th. JPMorgan Chase & Co. upped their price target on Varonis Systems from $39.00 to $55.00 and gave the company an "overweight" rating in a research report on Monday, July 27th. Royal Bank Of Canada lowered Varonis Systems from an "outperform" rating to a "neutral" rating in a research report on Friday. B. Riley Financial increased their price target on Varonis Systems from $45.00 to $55.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Finally, Jefferies Financial Group reissued a "hold" rating and issued a $49.75 price target (down from $60.00) on shares of Varonis Systems in a research note on Friday. Ten research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $50.86.

Varonis Systems Trading Up 2.7%

VRNS traded up $1.29 during trading on Friday, reaching $48.63. 14,985,790 shares of the company's stock were exchanged, compared to its average volume of 2,436,654. 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 one year low of $19.70 and a one year high of $63.80. The firm has a fifty day moving average price of $45.71 and a two-hundred day moving average price of $37.89. The stock has a market capitalization of $5.59 billion, a PE ratio of -39.54 and a beta of 0.77.

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 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 net margin of 20.55% and a negative return on equity of 19.18%. The company's revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter last year, the firm earned $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, equities research analysts forecast that Varonis Systems will post -0.95 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Varonis Systems

Hedge funds have recently added to or reduced their stakes in the business. Corient Private Wealth LLC lifted its holdings 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 purchasing an additional 585 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Varonis Systems by 161.0% in the first 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 in the last quarter. Assetmark Inc. increased 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 worth $104,000 after purchasing an additional 841 shares in the last quarter. Essential Partners LLC increased 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 worth $44,000 after purchasing an additional 863 shares in the last quarter. Finally, Versant Capital Management Inc raised its position in shares of Varonis Systems by 27.3% in the second quarter. Versant Capital Management Inc now owns 4,232 shares of the technology company's stock valued at $178,000 after purchasing an additional 907 shares during the period. 95.65% of the stock is currently owned by institutional investors.

Key Varonis Systems News

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

• Positive Sentiment: Proofpoint agreed to acquire Varonis in a definitive all-cash transaction valued at approximately $6.3 billion. The deal price is above Varonis’s recent market price and reduces near-term valuation uncertainty for shareholders. Proofpoint to Acquire Varonis in a $6.3 Billion Transaction
• Neutral Sentiment: Analyst targets are converging on the $49.75 acquisition price. Wedbush raised its target from $46 to $49.75 while retaining a neutral rating; Wells Fargo, DA Davidson and Rosenblatt reaffirmed neutral or equal-weight ratings with targets at $49.75. Needham maintained its hold rating. These actions imply modest upside but limited standalone upside beyond the offer price.
• Neutral Sentiment: RBC downgraded Varonis from outperform to sector perform and lowered its target from $52 to $49.75, citing the Proofpoint transaction. The move reflects the reduced importance of Varonis’s independent operating outlook while the acquisition is pending. RBC Downgrades Varonis Systems Amid Proofpoint Deal
• Negative Sentiment: Shareholder-rights law firms Ademi LLP and Halper Sadeh announced investigations into whether the $49.75 offer fairly values Varonis and whether the board adequately protected investors. Such reviews could increase deal-related scrutiny and introduce uncertainty, although they do not by themselves block the transaction. VRNS 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.

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