Varonis Systems' (VRNS) Neutral Rating Reiterated at Rosenblatt Securities

Key Points

• Rosenblatt Securities reiterated its “neutral” rating on Varonis Systems and cut its price target from $55.00 to $49.75, implying roughly 5% upside from the prior close.
• Analyst sentiment remains broadly positive, with 13 Buy, 10 Hold, and 1 Sell rating; the consensus is “Moderate Buy” with a $50.55 target. Varonis also reported quarterly revenue of $180.02 million, up 18.3% year over year, and exceeded EPS estimates.
• Proofpoint agreed to acquire Varonis for $49.75 per share in cash in a transaction valued at $6.3 billion, though shareholder-law-firm investigations could introduce uncertainty or delay closing.

Varonis Systems (NASDAQ:VRNS - Get Free Report)'s stock had its "neutral" rating restated by equities research analysts at Rosenblatt Securities in a research note issued to investors on Friday, Benzinga reports. They presently have a $49.75 target price on the technology company's stock, down from their prior target price of $55.00. Rosenblatt Securities' price target would indicate a potential upside of 5.09% from the company's previous close.

Several other research firms also recently weighed in on VRNS. Cantor Fitzgerald reissued an "overweight" rating on shares of Varonis Systems in a report on Tuesday, September 8th. Needham & Company LLC raised their price target on Varonis Systems from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, September 9th. TD Cowen lifted their price target on Varonis Systems from $53.00 to $56.00 and gave the stock a "buy" rating in a research report on Tuesday. B. Riley Financial lifted their price target on Varonis Systems from $45.00 to $55.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Finally, Robert W. Baird boosted their price objective on Varonis Systems from $40.00 to $45.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Thirteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Varonis Systems currently has an average rating of "Moderate Buy" and a consensus target price of $50.55.

Varonis Systems Stock Performance

Shares of VRNS stock opened at $47.34 on Friday. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 1.02. The firm has a fifty day moving average price of $45.71 and a 200 day moving average price of $37.89. The company has a market cap of $5.44 billion, a P/E ratio of -38.49 and a beta of 0.77. Varonis Systems has a 12 month low of $19.70 and a 12 month high of $63.80.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last released 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 return on equity of 19.18% and a negative net margin of 20.55%. The business had revenue of $180.02 million for the quarter, compared to the consensus estimate of $176.83 million. During the same quarter in the prior year, the business posted $0.03 EPS. The business's revenue for the quarter 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. Sell-side analysts predict that Varonis Systems will post -0.95 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Varonis Systems during the second quarter worth approximately $55,000. EverSource Wealth Advisors LLC raised its position in 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 buying an additional 839 shares during the last quarter. Harbor Investment Advisory LLC purchased a new position in Varonis Systems during the 2nd quarter worth $71,000. Fifth Third Bancorp raised its position in Varonis Systems by 10,694.1% during the 1st quarter. Fifth Third Bancorp now owns 1,835 shares of the technology company's stock worth $39,000 after buying an additional 1,818 shares during the last quarter. Finally, Essential Partners LLC lifted its stake in shares of Varonis Systems by 72.5% in the 1st quarter. Essential Partners LLC now owns 2,054 shares of the technology company's stock worth $44,000 after acquiring an additional 863 shares during the period. Institutional investors and hedge funds own 95.65% of the company's stock.

Key Varonis Systems News

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

• Positive Sentiment: Proofpoint will pay $49.75 per Varonis share in cash, giving investors a clear takeover valuation and reducing exposure to the company’s standalone operating risks. The announcement drove buying interest in VRNS. Proofpoint to Acquire Varonis in a $6.3 Billion Transaction
• Positive Sentiment: The transaction represents a substantial premium to Varonis’s unaffected trading price and could provide shareholders with near-term value realization, subject to customary closing conditions and approvals. Varonis stock climbs on $6.3 billion Proofpoint deal
• Neutral Sentiment: Before the acquisition announcement, Wells Fargo raised its Varonis price target from $48 to $53 and maintained an “overweight” rating, indicating analysts saw additional value in the business. However, the agreed cash consideration is now the primary reference point for the stock. Wells Fargo raises Varonis price target
• Negative Sentiment: Ademi LLP and Halper Sadeh LLP announced investigations into whether the $49.75-per-share offer fairly values Varonis, whether directors adequately protected shareholders, and whether insiders received preferential benefits. These reviews could create deal-related uncertainty or delay completion, although such announcements do not necessarily indicate that the transaction will be blocked. Ademi LLP investigates Varonis buyout

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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