Varonis Systems (NASDAQ:VRNS) Trading 10.2% Higher - Should You Buy?

Key Points

• Varonis Systems shares jumped about 10.2% to roughly $46.68, though trading volume was 83% below the average session volume.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus from 24 analysts and an average price target of $49.05; Needham and Barclays recently set $50 targets.
• The company beat quarterly earnings and revenue estimates, reporting $0.04 EPS and $180.02 million in revenue, up 18.3% year over year. However, Varonis remains unprofitable, with a negative net margin and analysts forecasting a full-year loss.

Varonis Systems, Inc. (NASDAQ:VRNS - Get Free Report) rose 10.2% during trading on Wednesday . The company traded as high as $42.48 and last traded at $46.6770. Approximately 432,417 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 2,498,551 shares. The stock had previously closed at $42.35.

Analysts Set New Price Targets

A number of analysts have commented on VRNS shares. Wedbush reaffirmed an "outperform" rating and set a $37.00 price objective on shares of Varonis Systems in a research note on Wednesday, June 24th. Needham & Company LLC boosted their target price on Varonis Systems from $40.00 to $50.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. KeyCorp started coverage on shares of Varonis Systems in a research note on Tuesday, May 26th. They set a "sector weight" rating on the stock. New Street Research reissued a "buy" rating on shares of Varonis Systems in a report on Wednesday, July 29th. Finally, Barclays dropped their target price on shares of Varonis Systems from $52.00 to $50.00 and set an "overweight" rating on the stock in a report on Wednesday, July 29th. Seventeen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $49.05.

Varonis Systems Trading Up 10.4%

The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 1.02. The stock has a market capitalization of $5.37 billion, a P/E ratio of -38.15 and a beta of 0.82. The business's fifty day simple moving average is $43.40 and its two-hundred day simple moving average is $32.56.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, beating analysts' consensus estimates of $0.01 by $0.03. Varonis Systems had a negative net margin of 20.55% and a negative return on equity of 19.18%. The business had revenue of $180.02 million during the quarter, compared to analyst estimates of $176.83 million. During the same quarter in the prior year, the business earned $0.03 earnings per share. The firm's revenue for the quarter was up 18.3% on a year-over-year basis. 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, analysts forecast that Varonis Systems, Inc. will post -0.97 earnings per share for the current year.

Institutional Trading of Varonis Systems

Institutional investors have recently made changes to their positions in the business. Empowered Funds LLC acquired a new position in Varonis Systems in the fourth quarter valued at about $37,000. Harvest Fund Management Co. Ltd bought a new position in shares of Varonis Systems in the third quarter valued at approximately $68,000. EverSource Wealth Advisors LLC boosted its holdings in shares of 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 acquiring an additional 940 shares in the last quarter. Advisory Services Network LLC bought a new stake in Varonis Systems during the 3rd quarter worth approximately $75,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Varonis Systems during the 2nd quarter worth approximately $55,000. 95.65% of the stock is currently owned by institutional investors and hedge funds.

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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