Morgan Stanley Forecasts Strong Price Appreciation for Varonis Systems (NASDAQ:VRNS) Stock

Key Points

• Morgan Stanley has raised its price target for Varonis Systems from $59.00 to $66.00, indicating a potential upside of 13.36% from the previous close.
• Multiple research firms have shown bullish sentiment, with several analysts upgrading their price targets for the stock, leading to a consensus target price of $61.65.
• Varonis reported earnings of $0.03 per share for the last quarter, exceeding analysts' expectations and showing a 16.7% year-over-year revenue increase.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price objective raised by Morgan Stanley from $59.00 to $66.00 in a report released on Tuesday,Benzinga reports. The brokerage currently has an "overweight" rating on the technology company's stock. Morgan Stanley's target price would suggest a potential upside of 17.79% from the company's current price.

Other analysts have also issued reports about the stock. DA Davidson increased their target price on shares of Varonis Systems from $47.00 to $50.00 and gave the stock a "neutral" rating in a report on Wednesday, July 30th. Cantor Fitzgerald reiterated an "overweight" rating and set a $60.00 target price on shares of Varonis Systems in a report on Tuesday, July 22nd. Jefferies Financial Group raised shares of Varonis Systems from a "hold" rating to a "buy" rating and increased their price target for the stock from $50.00 to $65.00 in a research note on Thursday, July 24th. Wells Fargo & Company raised shares of Varonis Systems from an "equal weight" rating to an "overweight" rating and increased their price target for the stock from $51.00 to $70.00 in a research note on Monday, August 11th. Finally, UBS Group increased their price target on shares of Varonis Systems from $60.00 to $65.00 and gave the stock a "buy" rating in a research note on Wednesday, July 30th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $61.65.

Varonis Systems Trading Up 0.5%

NASDAQ VRNS traded up $0.30 during trading on Tuesday, hitting $56.03. 952,768 shares of the company's stock traded hands, compared to its average volume of 1,391,624. The stock has a fifty day moving average of $54.60 and a two-hundred day moving average of $47.73. The company has a debt-to-equity ratio of 1.32, a current ratio of 1.38 and a quick ratio of 1.38. Varonis Systems has a 12-month low of $36.53 and a 12-month high of $60.58. The firm has a market cap of $6.28 billion, a P/E ratio of -60.90 and a beta of 0.67.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The technology company reported $0.03 earnings per share (EPS) for the quarter, beating 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 business had revenue of $152.16 million during the quarter, compared to analyst estimates of $147.80 million. During the same period in the prior year, the business posted $0.05 earnings per share. The company's 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. As a group, sell-side analysts expect that Varonis Systems will post -0.83 EPS for the current year.

Insider Activity at Varonis Systems

In related news, Director Den Bosch Fred Van sold 3,000 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were 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 of the company's stock, valued at $7,086,923.28. This trade represents a 2.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Guy Melamed sold 1,500 shares of the firm's stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $59.59, for a total transaction of $89,385.00. Following the sale, the chief financial officer directly owned 412,105 shares of the company's stock, valued at $24,557,336.95. This trade represents a 0.36% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 113,386 shares of company stock valued at $6,429,405 in the last three months. 2.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Varonis Systems

Several institutional investors and hedge funds have recently made changes to their positions in VRNS. Bessemer Group Inc. increased its position in shares of Varonis Systems by 179.1% during the second quarter. Bessemer Group Inc. now owns 494 shares of the technology company's stock valued at $25,000 after acquiring an additional 317 shares in the last quarter. Quarry LP grew its position in Varonis Systems by 31.8% in the 1st quarter. Quarry LP now owns 1,082 shares of the technology company's stock worth $44,000 after purchasing an additional 261 shares during the period. EverSource Wealth Advisors LLC grew its position in Varonis Systems by 344.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,213 shares of the technology company's stock worth $62,000 after purchasing an additional 940 shares during the period. BI Asset Management Fondsmaeglerselskab A S bought a new stake in Varonis Systems in the 1st quarter worth approximately $69,000. Finally, NBC Securities Inc. grew its position in Varonis Systems by 100,200.0% in the 1st quarter. NBC Securities Inc. now owns 2,006 shares of the technology company's stock worth $81,000 after purchasing an additional 2,004 shares during the period. Institutional investors own 95.65% of the company's stock.

About Varonis Systems

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.