Castleark Management LLC Acquires New Position in Varonis Systems, Inc. $VRNS

Key Points

• Castleark Management initiated a position in Varonis Systems, buying 45,950 shares worth approximately $1.93 million. Institutional investors collectively own 95.65% of the company, with several other funds also adding new stakes.
• Varonis reported quarterly EPS of $0.04, exceeding the $0.01 consensus estimate, while revenue rose 18.3% year over year to $180.02 million. Despite growth, the company posted a negative net margin and negative return on equity.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $49.05, above the stock’s reported $41.40 opening price.

Castleark Management LLC bought a new position in shares of Varonis Systems, Inc. (NASDAQ:VRNS - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 45,950 shares of the technology company's stock, valued at approximately $1,928,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Nicholas Investment Partners LP purchased a new position in shares of Varonis Systems during the 2nd quarter worth $2,897,000. Legal & General Group Plc purchased a new stake in shares of Varonis Systems in the second quarter valued at $3,998,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Varonis Systems in the second quarter valued at $2,417,000. Algert Global LLC acquired a new position in Varonis Systems in the second quarter valued at $5,780,000. Finally, Clal Insurance Enterprises Holdings Ltd acquired a new position in Varonis Systems in the second quarter valued at $61,262,000. 95.65% of the stock is owned by hedge funds and other institutional investors.

Varonis Systems Stock Up 1.4%

Shares of NASDAQ:VRNS opened at $41.40 on Thursday. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.65 and a current ratio of 1.65. Varonis Systems, Inc. has a 1 year low of $19.70 and a 1 year high of $63.90. The stock has a market capitalization of $4.76 billion, a P/E ratio of -33.66 and a beta of 0.83. The stock has a 50-day simple moving average of $42.60 and a 200-day simple moving average of $32.04.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last posted its earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.03 EPS. 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 forecast that Varonis Systems, Inc. will post -0.97 earnings per share for the current year.

Wall Street Analysts Forecast Growth

VRNS has been the subject of several recent analyst reports. Truist Financial lifted their price target on Varonis Systems from $34.00 to $52.00 and gave the company a "buy" rating in a report on Tuesday, July 21st. KeyCorp assumed coverage on shares of Varonis Systems in a report on Tuesday, May 26th. They set a "sector weight" rating on the stock. Wells Fargo & Company raised their target price on shares of Varonis Systems from $35.00 to $50.00 and gave the stock an "overweight" rating in a research report on Monday, July 20th. New Street Research restated a "buy" rating on shares of Varonis Systems in a report on Wednesday, July 29th. Finally, Needham & Company LLC upped their price target on shares of Varonis Systems from $40.00 to $50.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. Seventeen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target 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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