Hsbc Holdings PLC Reduces Holdings in Varonis Systems, Inc. $VRNS

Key Points

• Hsbc Holdings PLC significantly reduced its stake in Varonis Systems, Inc. by 82.1% in the first quarter, holding 46,491 shares valued at approximately $1.86 million after selling 213,867 shares.
• Varonis Systems reported an earnings per share of $0.03 for the last quarter, surpassing estimates, with revenue increasing 16.7% year-over-year to $152.16 million.
• Analysts have issued a consensus rating of "Moderate Buy" for Varonis Systems, with multiple price targets ranging from $60.00 to $80.00, indicating positive expectations for the stock's trajectory.

Hsbc Holdings PLC trimmed its stake in Varonis Systems, Inc. (NASDAQ:VRNS - Free Report) by 82.1% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 46,491 shares of the technology company's stock after selling 213,867 shares during the period. Hsbc Holdings PLC's holdings in Varonis Systems were worth $1,858,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Envestnet Asset Management Inc. lifted its position in Varonis Systems by 3.1% during the 4th quarter. Envestnet Asset Management Inc. now owns 32,196 shares of the technology company's stock valued at $1,430,000 after acquiring an additional 962 shares during the period. Tower Research Capital LLC TRC lifted its position in Varonis Systems by 7.4% during the 4th quarter. Tower Research Capital LLC TRC now owns 4,340 shares of the technology company's stock valued at $193,000 after acquiring an additional 298 shares during the period. Quarry LP purchased a new position in Varonis Systems during the 4th quarter valued at about $36,000. The Manufacturers Life Insurance Company lifted its position in Varonis Systems by 7.1% during the 4th quarter. The Manufacturers Life Insurance Company now owns 814,055 shares of the technology company's stock valued at $36,168,000 after acquiring an additional 54,320 shares during the period. Finally, Northern Trust Corp lifted its position in Varonis Systems by 8.2% during the 4th quarter. Northern Trust Corp now owns 1,122,939 shares of the technology company's stock valued at $49,892,000 after acquiring an additional 84,796 shares during the period. 95.65% of the stock is owned by hedge funds and other institutional investors.

Varonis Systems Stock Up 1.9%

Shares of Varonis Systems stock opened at $58.49 on Thursday. Varonis Systems, Inc. has a twelve month low of $36.53 and a twelve month high of $60.58. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 1.32. The company's 50 day moving average is $53.57 and its 200 day moving average is $47.07. The company has a market cap of $6.55 billion, a price-to-earnings ratio of -63.58 and a beta of 0.71.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last issued its earnings results on Tuesday, July 29th. The technology company reported $0.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.02. Varonis Systems had a negative net margin of 17.30% and a negative return on equity of 23.06%. The company had revenue of $152.16 million for the quarter, compared to analysts' expectations of $147.80 million. During the same quarter last year, the company posted $0.05 earnings per share. The firm's quarterly revenue was up 16.7% on a year-over-year basis. Varonis Systems has set its FY 2025 guidance at 0.160-0.180 EPS. Q3 2025 guidance at 0.070-0.080 EPS. Research analysts anticipate that Varonis Systems, Inc. will post -0.83 EPS for the current year.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Cantor Fitzgerald reissued an "overweight" rating and set a $60.00 price target on shares of Varonis Systems in a research report on Tuesday, July 22nd. B. Riley assumed coverage on shares of Varonis Systems in a research report on Tuesday. They set a "buy" rating and a $80.00 price target for the company. Wedbush lifted their price target on shares of Varonis Systems from $60.00 to $65.00 and gave the company an "outperform" rating in a research report on Wednesday, July 30th. Susquehanna raised their price objective on shares of Varonis Systems from $55.00 to $65.00 and gave the company a "positive" rating in a research note on Wednesday, July 30th. Finally, Wells Fargo & Company upgraded shares of Varonis Systems from an "equal weight" rating to an "overweight" rating and raised their price objective for the company from $51.00 to $70.00 in a research note on Monday, August 11th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Varonis Systems currently has a consensus rating of "Moderate Buy" and a consensus target price of $60.47.

Insider Activity at Varonis Systems

In related news, CFO Guy Melamed sold 10,400 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $59.53, for a total value of $619,112.00. Following the sale, the chief financial officer owned 417,497 shares in the company, valued at approximately $24,853,596.41. This trade represents a 2.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Den Bosch Fred Van sold 3,000 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $55.08, for a total transaction of $165,240.00. Following the completion of the sale, the director owned 128,666 shares in the company, valued at $7,086,923.28. This represents a 2.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold 113,994 shares of company stock worth $6,408,369 in the last 90 days. 2.30% of the stock is currently owned by corporate insiders.

Varonis Systems Company Profile

Varonis Systems, Inc provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; source code, strategic and product plans; and other intellectual property.

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