Hsbc Holdings PLC Invests $1.40 Million in Varonis Systems, Inc. $VRNS

Key Points

• HSBC acquired a new 33,918-share stake in Varonis Systems during the second quarter, valued at approximately $1.40 million. Institutional investors collectively own 95.65% of the company.
• Varonis reported quarterly revenue of $180.02 million, up 18.3% year over year, and earnings of $0.04 per share, beating analysts’ $0.01 estimate. However, the company remains unprofitable, with a negative net margin of 20.55%.
• Analyst sentiment is broadly positive, with 16 Buy, seven Hold and one Sell rating; the stock has a “Moderate Buy” consensus and an average price target of $49.79, compared with a recent price of $45.12.

Hsbc Holdings PLC acquired a new stake in Varonis Systems, Inc. (NASDAQ:VRNS - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 33,918 shares of the technology company's stock, valued at approximately $1,403,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Dynamic Technology Lab Private Ltd bought a new position in Varonis Systems during the first quarter worth about $233,000. Caxton Associates LLP acquired a new stake in shares of Varonis Systems in the first quarter valued at approximately $200,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Varonis Systems by 11.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 619,257 shares of the technology company's stock worth $25,049,000 after acquiring an additional 64,636 shares during the period. Russell Investments Group Ltd. boosted its stake in shares of Varonis Systems by 2.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 22,811 shares of the technology company's stock worth $1,158,000 after acquiring an additional 628 shares during the period. Finally, Invesco Ltd. increased its holdings in shares of Varonis Systems by 8.6% during the 2nd quarter. Invesco Ltd. now owns 96,536 shares of the technology company's stock worth $4,899,000 after acquiring an additional 7,618 shares during the last quarter. 95.65% of the stock is owned by institutional investors.

Varonis Systems Trading Down 0.8%

VRNS stock opened at $45.12 on Friday. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.65 and a current ratio of 1.65. The company's 50-day simple moving average is $44.24 and its 200 day simple moving average is $33.67. Varonis Systems, Inc. has a 52 week low of $19.70 and a 52 week high of $63.90. The company has a market capitalization of $5.18 billion, a PE ratio of -36.68 and a beta of 0.82.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of $0.01 by $0.03. The business had revenue of $180.02 million for the quarter, compared to analyst estimates of $176.83 million. Varonis Systems had a negative net margin of 20.55% and a negative return on equity of 19.18%. Varonis Systems's revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period last year, the firm earned $0.03 earnings per share. 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. As a group, sell-side analysts anticipate that Varonis Systems, Inc. will post -0.96 earnings per share for the current year.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on VRNS shares. Weiss Ratings upgraded Varonis Systems from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, June 30th. Wells Fargo & Company lifted their price objective 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. Stephens upgraded shares of Varonis Systems from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $33.00 to $45.00 in a report on Wednesday, June 24th. UBS Group increased their price objective on shares of Varonis Systems from $37.00 to $58.00 and gave the company a "buy" rating in a research report on Tuesday, July 21st. Finally, Truist Financial raised their target price on shares of Varonis Systems from $34.00 to $52.00 and gave the stock a "buy" rating in a research note on Tuesday, July 21st. Sixteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $49.79.

Varonis Systems Company Profile

Varonis Systems, Inc NASDAQ: VRNS is a cybersecurity company that helps organizations protect and manage their data. Its platform focuses on securing sensitive information stored across cloud environments, software-as-a-service applications, data centers and other enterprise systems.

The Varonis Data Security Platform provides capabilities for data discovery and classification, access governance, threat detection, data activity monitoring and automated remediation. Its products are designed to identify sensitive or exposed data, reduce excessive access permissions, detect suspicious behavior and help organizations respond to risks involving files, emails and other unstructured data.

Founded in 2005, Varonis serves businesses and institutions internationally through a combination of direct sales and channel partners.

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