Arrowstreet Capital Limited Partnership Purchases 966,817 Shares of Varonis Systems, Inc. $VRNS

Key Points

• Arrowstreet Capital increased its Varonis Systems position by 218.4% in the first quarter, purchasing 966,817 additional shares for a total of 1.41 million shares valued at approximately $30.3 million. Institutional investors collectively own 95.65% of the company.
• Varonis exceeded second-quarter expectations with EPS of $0.04 and revenue of $180.0 million, up 18.3% year over year. Management raised its 2026 SaaS annual recurring revenue growth outlook to 20%–21% and forecast full-year revenue of $735 million–$739 million.
• Analysts maintain a generally positive view, with 18 Buy ratings, five Holds and one Sell, producing a consensus “Moderate Buy” rating and $48.26 price target. Despite improving results, Varonis remains unprofitable on a reported basis, with a negative net margin and return on equity.

Arrowstreet Capital Limited Partnership lifted its position in shares of Varonis Systems, Inc. (NASDAQ:VRNS - Free Report) by 218.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,409,487 shares of the technology company's stock after buying an additional 966,817 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 1.23% of Varonis Systems worth $30,262,000 at the end of the most recent reporting period.

A number of other institutional investors have also bought and sold shares of the company. Signaturefd LLC boosted its holdings in shares of Varonis Systems by 47.8% during the 4th quarter. Signaturefd LLC now owns 995 shares of the technology company's stock worth $33,000 after buying an additional 322 shares in the last quarter. Empowered Funds LLC acquired a new position in shares of Varonis Systems during the 4th quarter valued at $37,000. Fifth Third Bancorp lifted its position in shares of Varonis Systems by 10,694.1% during the 1st quarter. Fifth Third Bancorp now owns 1,835 shares of the technology company's stock valued at $39,000 after acquiring an additional 1,818 shares during the period. Allworth Financial LP boosted its stake in Varonis Systems by 201.3% during the third quarter. Allworth Financial LP now owns 693 shares of the technology company's stock worth $40,000 after acquiring an additional 463 shares in the last quarter. Finally, First Horizon Corp boosted its stake in Varonis Systems by 121.7% during the fourth quarter. First Horizon Corp now owns 1,740 shares of the technology company's stock worth $57,000 after acquiring an additional 955 shares in the last quarter. Institutional investors own 95.65% of the company's stock.

Varonis Systems News Roundup

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

• Positive Sentiment: Varonis reported second-quarter EPS of $0.04, above the $0.01 analyst consensus, while revenue of $180.0 million exceeded expectations of $176.8 million and increased 18.3% year over year. Varonis Q2 Earnings Surpass Expectations
• Positive Sentiment: Management raised its 2026 SaaS annual recurring revenue outlook to 20%-21% growth and indicated free cash flow of $105 million-$110 million, supporting the investment case for its recurring-revenue transition. Varonis Signals Free Cash Flow and SaaS ARR Outlook
• Positive Sentiment: SaaS ARR excluding conversions grew 25% year over year, while total SaaS ARR reached $726 million, up 52%. The company cited demand for AI and data security products, including Atlas, Interceptor and Database Activity Monitoring. Varonis Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Full-year 2026 guidance calls for EPS of $0.14-$0.15 and revenue of $735 million-$739 million, while third-quarter guidance of $0.02-$0.03 EPS is well above the prior consensus loss estimate.
• Positive Sentiment: Analysts raised targets after the results: Piper Sandler to $58, Susquehanna to $55, TD Cowen to $53, Needham to $50 and JPMorgan to $55. Rosenblatt reaffirmed its buy rating with a $55 target.
• Neutral Sentiment: Barclays trimmed its target to $50 but retained an overweight rating, while Baird raised its target to $45 but maintained a neutral rating, indicating continued valuation and execution concerns.
• Negative Sentiment: Despite the earnings beats and improved outlook, VRNS remains unprofitable on a reported basis, with a negative net margin and negative return on equity. The elevated trading volume and recent share-price gains may also be encouraging investors to lock in profits.

Wall Street Analysts Forecast Growth

VRNS has been the topic of a number of research analyst reports. Truist Financial increased their price objective on shares of Varonis Systems from $34.00 to $52.00 and gave the stock a "buy" rating in a research report on Tuesday, July 21st. Barclays decreased their target price on Varonis Systems from $52.00 to $50.00 and set an "overweight" rating for the company in a research report on Wednesday. DA Davidson upped their price target on Varonis Systems from $30.00 to $37.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Robert W. Baird increased their price target on Varonis Systems from $40.00 to $45.00 and gave the stock a "neutral" rating in a report on Wednesday. Finally, Needham & Company LLC raised their price objective on Varonis Systems from $40.00 to $50.00 and gave the company a "buy" rating in a research note on Wednesday. Eighteen analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Varonis Systems has a consensus rating of "Moderate Buy" and a consensus target price of $48.26.

Varonis Systems Stock Performance

Shares of Varonis Systems stock opened at $40.65 on Thursday. The company has a quick ratio of 1.69, a current ratio of 1.69 and a debt-to-equity ratio of 1.00. The company has a market cap of $4.67 billion, a PE ratio of -33.05 and a beta of 0.83. The business has a 50 day moving average price of $38.83 and a 200-day moving average price of $30.60. Varonis Systems, Inc. has a 52 week low of $19.70 and a 52 week high of $63.90.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last announced its earnings results on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, beating the consensus estimate of $0.01 by $0.03. Varonis Systems had a negative net margin of 20.55% and a negative return on equity of 18.24%. 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 earnings per share. The firm'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. Equities analysts anticipate that Varonis Systems, Inc. will post -1.05 earnings per share for the current fiscal year.

Varonis Systems 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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