Varonis Systems, Inc. $VRNS Shares Sold by Moody Aldrich Partners LLC

Key Points

• Moody Aldrich Partners cut its stake in Varonis by 37.9% in Q4, leaving it with 65,950 shares (~0.06% stake, ~$2.16M), while other institutions like Vanguard and Pictet materially increased positions and institutional ownership sits around 95.65%.
• Varonis beat Q1 estimates (EPS $0.06 vs. -$0.05 consensus; revenue $173.1M vs. $165.5M) and management raised Q2 and FY26 guidance, alongside strong SaaS ARR growth (69% YoY to $683.2M) and the launch of AI capability Varonis Atlas.
• However, profitability remains a concern — the company still posts a negative net margin (~-20.7%) and negative ROE, which could constrain valuation until margins sustainably improve.

Moody Aldrich Partners LLC cut its stake in Varonis Systems, Inc. (NASDAQ:VRNS - Free Report) by 37.9% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 65,950 shares of the technology company's stock after selling 40,212 shares during the period. Moody Aldrich Partners LLC owned about 0.06% of Varonis Systems worth $2,163,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of VRNS. Pictet Asset Management Holding SA boosted its stake in shares of Varonis Systems by 99.1% in the 4th quarter. Pictet Asset Management Holding SA now owns 2,178,380 shares of the technology company's stock valued at $71,480,000 after buying an additional 1,084,267 shares during the period. Clal Insurance Enterprises Holdings Ltd increased its stake in shares of Varonis Systems by 166.7% during the third quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,360,000 shares of the technology company's stock worth $78,159,000 after buying an additional 850,000 shares during the period. Vanguard Group Inc. raised its holdings in Varonis Systems by 6.5% in the fourth quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company's stock valued at $440,119,000 after acquiring an additional 822,925 shares in the last quarter. Allspring Global Investments Holdings LLC raised its holdings in Varonis Systems by 69.5% in the third quarter. Allspring Global Investments Holdings LLC now owns 1,646,351 shares of the technology company's stock valued at $95,192,000 after acquiring an additional 674,807 shares in the last quarter. Finally, Atreides Management LP purchased a new position in Varonis Systems in the third quarter worth approximately $37,839,000. 95.65% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Varonis Systems

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

• Positive Sentiment: Q1 EPS and revenue topped estimates: Varonis reported $0.06 EPS versus a consensus loss and revenue of $173.1M above Street estimates, signaling stronger demand and better-than-expected operating leverage for the quarter. Varonis Systems (VRNS) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised guidance materially above consensus: Varonis set Q2 EPS guidance of $0.00–$0.01 (vs. consensus -$0.04) and FY26 EPS of $0.110–$0.120 (vs. consensus -$0.13), and raised revenue targets — a clear signal of improving profitability trajectory and confidence in growth. Varonis Announces First Quarter 2026 Financial Results
• Positive Sentiment: Strong SaaS ARR expansion and product momentum: Total SaaS ARR $683.2M (up 69% YoY) and SaaS ARR excluding conversions up 29% YoY; company launched Varonis Atlas (AI capability via AllTrue.ai acquisition) — supports recurring revenue durability and potential upsell/cross-sell. Varonis Announces First Quarter 2026 Financial Results
• Neutral Sentiment: Earnings call transcript highlights execution details: Management discussed ARR dynamics, product adoption and integration of AI capabilities — useful for gauging sustainability of revenue growth but requires follow-up on sales efficiency and churn metrics. Varonis Systems, Inc. (VRNS) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst previews and metric comparisons: Coverage (Zacks/TipRanks/Yahoo) frames the quarter versus expectations and may drive short-term analyst reactions and re-ratings; watch revisions to estimates and model assumptions. Varonis (VRNS) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Profitability remains a concern: Despite revenue and ARR growth, Varonis still shows a negative net margin (~-20.7%) and negative ROE, leaving execution and path-to-consistent profitability as key risks that could cap valuation until sustained positive margins appear. Varonis Q1 Results and Metrics

Varonis Systems Stock Up 1.6%

VRNS stock opened at $25.44 on Wednesday. The stock has a market cap of $2.92 billion, a P/E ratio of -22.32 and a beta of 0.68. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.76. Varonis Systems, Inc. has a twelve month low of $19.70 and a twelve month high of $63.90. The company's 50 day moving average is $23.32 and its two-hundred day moving average is $31.54.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last posted its earnings results on Tuesday, April 28th. The technology company reported $0.06 EPS for the quarter, topping analysts' consensus estimates of ($0.05) by $0.11. Varonis Systems had a negative return on equity of 22.95% and a negative net margin of 20.74%.The business had revenue of $173.13 million for the quarter, compared to analysts' expectations of $165.52 million. The business's revenue for the quarter was up 26.9% compared to the same quarter last year. Varonis Systems has set its FY 2026 guidance at 0.110-0.120 EPS and its Q2 2026 guidance at 0.000-0.010 EPS. Research analysts expect that Varonis Systems, Inc. will post -0.99 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. B. Riley Financial dropped their price objective on shares of Varonis Systems from $58.00 to $45.00 and set a "buy" rating on the stock in a research report on Wednesday, February 4th. Citigroup decreased their price objective on shares of Varonis Systems from $37.00 to $28.00 and set a "neutral" rating for the company in a research report on Wednesday, February 4th. Royal Bank Of Canada dropped their target price on Varonis Systems from $60.00 to $41.00 and set an "outperform" rating on the stock in a report on Monday, January 5th. Wells Fargo & Company assumed coverage on Varonis Systems in a research note on Tuesday, March 3rd. They issued an "overweight" rating and a $28.00 price target on the stock. Finally, Truist Financial decreased their price target on Varonis Systems from $42.00 to $34.00 and set a "buy" rating for the company in a report on Wednesday, February 4th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $41.89.

Insider Activity

In other news, EVP David Bass acquired 2,980 shares of the firm's stock in a transaction dated Monday, February 9th. The stock was acquired at an average cost of $23.47 per share, with a total value of $69,940.60. Following the completion of the acquisition, the executive vice president owned 1,042,924 shares of the company's stock, valued at $24,477,426.28. The trade was a 0.29% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John J. Gavin, Jr. purchased 5,000 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The shares were acquired at an average price of $22.54 per share, with a total value of $112,700.00. Following the purchase, the director owned 273,666 shares in the company, valued at $6,168,431.64. This trade represents a 1.86% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 25,780 shares of company stock valued at $579,403. 2.30% of the stock is currently owned by company insiders.

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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