American Capital Management Inc. Buys Shares of 2,241,704 Varonis Systems, Inc. $VRNS

Key Points

• American Capital Management acquired 2.24 million Varonis Systems shares worth approximately $94.1 million, making the cybersecurity stock its fourth-largest holding and representing a 1.95% stake in the company.
• Varonis reported quarterly revenue of $180.0 million, up 18.3% year over year, and adjusted earnings of $0.04 per share, beating analysts’ $0.01 consensus estimate. Despite the improvement, the company remains unprofitable, with a negative net margin of 20.55%.
• Analysts maintain a generally positive outlook, with 17 Buy, six Hold, and one Sell rating. The stock carries a “Moderate Buy” consensus and an average price target of $49.05, compared with a recent price of $41.40.

American Capital Management Inc. purchased a new stake in Varonis Systems, Inc. (NASDAQ:VRNS - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 2,241,704 shares of the technology company's stock, valued at approximately $94,062,000. Varonis Systems makes up 4.2% of American Capital Management Inc.'s holdings, making the stock its 4th biggest position. American Capital Management Inc. owned 1.95% of Varonis Systems at the end of the most recent quarter.

A number of other hedge funds have also made changes to their positions in the company. Benjamin Edwards Inc. increased its holdings in Varonis Systems by 5.5% during the 2nd quarter. Benjamin Edwards Inc. now owns 6,692 shares of the technology company's stock valued at $340,000 after acquiring an additional 351 shares in the last quarter. Amundi grew its position in shares of Varonis Systems by 0.7% in the third quarter. Amundi now owns 52,886 shares of the technology company's stock valued at $3,212,000 after purchasing an additional 387 shares during the last quarter. Osaic Holdings Inc. grew its position in shares of Varonis Systems by 10.5% in the second quarter. Osaic Holdings Inc. now owns 4,647 shares of the technology company's stock valued at $234,000 after purchasing an additional 440 shares during the last quarter. Xponance LLC increased its stake in shares of Varonis Systems by 6.2% during the 4th quarter. Xponance LLC now owns 9,212 shares of the technology company's stock worth $302,000 after purchasing an additional 539 shares in the last quarter. Finally, Focus Partners Wealth increased its stake in shares of Varonis Systems by 0.5% during the 3rd quarter. Focus Partners Wealth now owns 111,210 shares of the technology company's stock worth $6,351,000 after purchasing an additional 546 shares in the last quarter. Hedge funds and other institutional investors own 95.65% of the company's stock.

Varonis Systems Stock Up 1.4%

Shares of NASDAQ:VRNS opened at $41.40 on Thursday. 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 market cap of $4.76 billion, a price-to-earnings ratio of -33.66 and a beta of 0.83. The stock's 50-day moving average price is $42.60 and its two-hundred day moving average price is $32.04. Varonis Systems, Inc. has a 12-month low of $19.70 and a 12-month high of $63.90.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last posted 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 net margin of 20.55% and a negative return on equity of 19.18%. The company had revenue of $180.02 million during the quarter, compared to the consensus estimate of $176.83 million. During the same quarter in the prior year, the company posted $0.03 EPS. The company's quarterly revenue was up 18.3% compared to the same quarter last year. 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. On average, research analysts forecast that Varonis Systems, Inc. will post -0.97 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. New Street Research reaffirmed a "buy" rating on shares of Varonis Systems in a research note on Wednesday, July 29th. JPMorgan Chase & Co. raised their price target on Varonis Systems from $39.00 to $55.00 and gave the stock an "overweight" rating in a research report on Monday, July 27th. Rosenblatt Securities reissued a "buy" rating and issued a $55.00 price target on shares of Varonis Systems in a report on Wednesday, July 29th. Royal Bank Of Canada upped their price objective on Varonis Systems from $30.00 to $36.00 and gave the company an "outperform" rating in a research report on Wednesday, April 29th. Finally, Citigroup increased their price objective on Varonis Systems from $30.00 to $45.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Seventeen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Varonis Systems currently has a consensus rating of "Moderate Buy" and an average target price of $49.05.

Varonis Systems Company Profile

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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