DA Davidson Forecasts Strong Price Appreciation for Varonis Systems (NASDAQ:VRNS) Stock

Key Points

• DA Davidson raised its price target on Varonis to $37 (from $30) and maintains a "buy" rating, implying roughly a 35% upside
• Q1 results beat expectations—EPS $0.06 vs. -$0.05 and revenue $173.1M vs. $165.5M—and the company raised FY2026 EPS guidance to $0.110–0.120 and signaled total SaaS ARR of roughly $814M–$845M, indicating accelerating recurring revenue.
• Insider and institutional buying has increased recently (directors/executives purchased ~25,780 shares and ~95.7% of shares are held by institutions), signaling investor confidence despite the company remaining unprofitable on a net‑margin basis.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price objective raised by stock analysts at DA Davidson from $30.00 to $37.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the technology company's stock. DA Davidson's target price points to a potential upside of 35.15% from the company's current price.

Several other research firms have also recently commented on VRNS. JPMorgan Chase & Co. reduced their target price on shares of Varonis Systems from $50.00 to $38.00 and set an "overweight" rating for the company in a research note on Wednesday, February 4th. Wells Fargo & Company lifted their target price on shares of Varonis Systems from $28.00 to $35.00 and gave the stock an "overweight" rating in a research report on Wednesday. Citigroup cut their target price on shares of Varonis Systems from $37.00 to $28.00 and set a "neutral" rating for the company in a research report on Wednesday, February 4th. Cantor Fitzgerald lowered their price target on shares of Varonis Systems from $50.00 to $35.00 and set an "overweight" rating for the company in a report on Wednesday, February 4th. Finally, Morgan Stanley restated an "equal weight" rating and issued a $41.00 target price (down from $44.00) on shares of Varonis Systems in a report on Monday, January 26th. Fifteen research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Varonis Systems currently has a consensus rating of "Moderate Buy" and a consensus target price of $41.26.

Varonis Systems Stock Performance

Shares of VRNS stock traded up $1.94 during mid-day trading on Wednesday, hitting $27.38. The stock had a trading volume of 5,092,538 shares, compared to its average volume of 2,982,984. Varonis Systems has a fifty-two week low of $19.70 and a fifty-two week high of $63.90. The firm has a market cap of $3.14 billion, a PE ratio of -24.03 and a beta of 0.68. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.97 and a quick ratio of 1.97. The company's 50-day simple moving average is $23.32 and its 200-day simple moving average is $31.54.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last released its earnings results on Tuesday, April 28th. The technology company reported $0.06 EPS for the quarter, topping the consensus estimate of ($0.05) by $0.11. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 22.95%. The company had revenue of $173.13 million during the quarter, compared to analysts' expectations of $165.52 million. The company's revenue for the quarter was up 26.9% compared to the same quarter last year. Varonis Systems has set its FY 2026 guidance at 0.110-0.120 EPS and its Q2 2026 guidance at 0.000-0.010 EPS. Sell-side analysts anticipate that Varonis Systems will post -0.99 earnings per share for the current year.

Insiders Place Their Bets

In other Varonis Systems news, Director Avrohom J. Kess acquired 17,800 shares of the firm's stock in a transaction on Friday, February 6th. The stock was bought at an average cost of $22.29 per share, for a total transaction of $396,762.00. Following the completion of the purchase, the director directly owned 49,403 shares in the company, valued at $1,101,192.87. This represents a 56.32% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP David Bass acquired 2,980 shares of the firm's stock in a transaction on Monday, February 9th. The shares were acquired at an average price of $23.47 per share, with a total value of $69,940.60. Following the completion of the purchase, the executive vice president owned 1,042,924 shares of the company's stock, valued at $24,477,426.28. This trade represents a 0.29% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 25,780 shares of company stock worth $579,403 over the last ninety days. 2.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Hodges Capital Management Inc. boosted its stake in shares of Varonis Systems by 146.3% in the third quarter. Hodges Capital Management Inc. now owns 126,450 shares of the technology company's stock valued at $7,267,000 after purchasing an additional 75,120 shares during the period. Readystate Asset Management LP purchased a new position in shares of Varonis Systems in the third quarter valued at $13,731,000. Allspring Global Investments Holdings LLC boosted its stake in shares of Varonis Systems by 69.5% in the third quarter. Allspring Global Investments Holdings LLC now owns 1,646,351 shares of the technology company's stock valued at $95,192,000 after purchasing an additional 674,807 shares during the period. AustralianSuper Pty Ltd boosted its stake in shares of Varonis Systems by 29.6% in the third quarter. AustralianSuper Pty Ltd now owns 602,379 shares of the technology company's stock valued at $34,619,000 after purchasing an additional 137,713 shares during the period. Finally, Ion Asset Management Ltd. purchased a new position in shares of Varonis Systems in the third quarter valued at $5,172,000. 95.65% of the stock is currently owned by hedge funds and other institutional investors.

More Varonis Systems News

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

• Positive Sentiment: Q1 beat and upgraded guidance — Varonis reported $0.06 EPS vs. a -$0.05 consensus and revenue of $173.1M (above estimates), raised FY2026 EPS guidance to $0.110–0.120 and Q2 EPS to $0.000–0.010 while nudging FY revenue guidance above Street estimates. Varonis Announces First Quarter 2026 Financial Results
• Positive Sentiment: SaaS ARR acceleration — management signaled total SaaS ARR guidance of roughly $814M–$845M for 2026 after Q1; total SaaS ARR was reported at $683.2M (big YoY growth) and SaaS ARR ex-conversions rose ~29% YoY — a key metric for recurring revenue strength. Varonis signals $814M-$845M 2026 total SaaS ARR
• Positive Sentiment: Analyst bullishness — multiple firms raised targets/ratings after results (examples: Wedbush to $37/outperform, Wells Fargo to $35/overweight, Needham/Susquehanna to $36, Barclays/Stephens to $33), signaling renewed sell-side confidence and scope for upside. These Analysts Increase Their Forecasts On Varonis Systems Following Q1 Results
• Neutral Sentiment: Product / M&A progress — company launched Varonis Atlas (leveraging the AllTrue.ai acquisition) and posted the earnings deck and call transcript for deeper investor review; these items help validate strategy but impact is medium-term. View Press Release / Slide Deck
• Negative Sentiment: Profitability and longer-term technicals — Varonis remains unprofitable on a net-margin and ROE basis, and its 200‑day moving average sits above the current price, underscoring residual execution and valuation risks despite the beat. Market data and metrics

About Varonis Systems

Varonis Systems is a cybersecurity firm specializing in the protection and management of unstructured data. The company's flagship Data Security Platform provides advanced analytics for monitoring file systems, email servers, collaboration platforms and cloud storage. By continuously mapping and analyzing data permissions and user behavior, Varonis enables organizations to detect insider threats, verify compliance and remediate exposed data in real time.

Founded in 2005 and headquartered in New York City, Varonis serves a diverse global customer base across financial services, healthcare, media, manufacturing and government.

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