Royal Bank Of Canada Forecasts Strong Price Appreciation for Varonis Systems (NASDAQ:VRNS) Stock

Key Points

• Royal Bank of Canada raised its price target on Varonis to $36 (from $30) with an "outperform" rating, implying roughly a 29.8% upside
• Q1 beat and upgraded guidance: Varonis reported $0.06 EPS (vs. -$0.05 expected) and $173.1M revenue, raised FY2026 EPS guidance to $0.110–0.120 and signaled total SaaS ARR of roughly $814M–$845M, reflecting strong recurring‑revenue growth.
• Risks remain—Varonis is still unprofitable on net margin and ROE and trades below its 200‑day moving average—but insiders purchased shares recently and institutional ownership is high (95.65%), indicating investor conviction.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price target increased by stock analysts at Royal Bank Of Canada from $30.00 to $36.00 in a report released on Wednesday,Benzinga reports. The firm presently has an "outperform" rating on the technology company's stock. Royal Bank Of Canada's price target indicates a potential upside of 29.78% from the stock's current price.

A number of other equities research analysts also recently issued reports on VRNS. Piper Sandler raised shares of Varonis Systems from a "neutral" rating to an "overweight" rating and increased their price target for the stock from $45.00 to $47.00 in a report on Monday, January 5th. B. Riley Financial lowered their price target on shares of Varonis Systems from $58.00 to $45.00 and set a "buy" rating on the stock in a report on Wednesday, February 4th. Truist Financial lowered their target price on shares of Varonis Systems from $42.00 to $34.00 and set a "buy" rating on the stock in a research note on Wednesday, February 4th. Wells Fargo & Company raised their target price on shares of Varonis Systems from $28.00 to $35.00 and gave the company an "overweight" rating in a research note on Wednesday. Finally, William Blair reaffirmed a "market perform" rating on shares of Varonis Systems in a research note on Monday, March 23rd. Fifteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $41.58.

Varonis Systems Stock Performance

NASDAQ:VRNS traded up $2.30 on Wednesday, reaching $27.74. 3,833,215 shares of the company's stock were exchanged, compared to its average volume of 2,968,820. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.97 and a quick ratio of 1.97. The firm has a market cap of $3.18 billion, a price-to-earnings ratio of -24.16 and a beta of 0.68. Varonis Systems has a 52 week low of $19.70 and a 52 week high of $63.90. The stock has a fifty day simple moving average of $23.32 and a 200-day simple moving average of $31.54.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last issued its earnings results on Tuesday, April 28th. The technology company reported $0.06 earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.11. The firm had revenue of $173.13 million during the quarter, compared to analyst estimates of $165.52 million. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 22.95%. The company's quarterly revenue 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. As a group, sell-side analysts predict that Varonis Systems will post -0.99 earnings per share for the current year.

Insider Buying and Selling

In other news, Director John J. Gavin, Jr. bought 5,000 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The shares were bought at an average cost of $22.54 per share, with a total value of $112,700.00. Following the completion of the purchase, the director directly owned 273,666 shares in the company, valued at $6,168,431.64. This represents a 1.86% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, Director Avrohom J. Kess bought 17,800 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The stock was purchased at an average cost of $22.29 per share, for a total transaction of $396,762.00. Following the completion of the purchase, the director owned 49,403 shares of the company's stock, valued at $1,101,192.87. This trade represents a 56.32% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought a total of 25,780 shares of company stock valued at $579,403 over the last three months. 2.30% of the stock is owned by company insiders.

Institutional Trading of Varonis Systems

Several large investors have recently added to or reduced their stakes in the stock. Stephens Inc. AR boosted its holdings in Varonis Systems by 53.7% in the first quarter. Stephens Inc. AR now owns 16,723 shares of the technology company's stock valued at $359,000 after acquiring an additional 5,840 shares in the last quarter. Stephens Investment Management Group LLC boosted its holdings in Varonis Systems by 17.9% in the first quarter. Stephens Investment Management Group LLC now owns 1,992,760 shares of the technology company's stock valued at $42,785,000 after acquiring an additional 302,411 shares in the last quarter. Y Intercept Hong Kong Ltd boosted its holdings in Varonis Systems by 160.1% in the first quarter. Y Intercept Hong Kong Ltd now owns 282,767 shares of the technology company's stock valued at $6,071,000 after acquiring an additional 174,036 shares in the last quarter. Peregrine Capital Management LLC boosted its holdings in Varonis Systems by 15.1% in the first quarter. Peregrine Capital Management LLC now owns 326,153 shares of the technology company's stock valued at $7,003,000 after acquiring an additional 42,786 shares in the last quarter. Finally, Inspire Investing LLC boosted its holdings in shares of Varonis Systems by 68.9% during the 1st quarter. Inspire Investing LLC now owns 24,023 shares of the technology company's stock valued at $516,000 after buying an additional 9,804 shares in the last quarter. Institutional investors own 95.65% of the company's stock.

Varonis Systems News Summary

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

• Positive Sentiment: Q1 beat and upgraded guidance — Varonis reported $0.06 EPS vs. a -$0.05 consensus and revenue of $173.1M (above estimates), raised FY2026 EPS guidance to $0.110–0.120 and Q2 EPS to $0.000–0.010 while nudging FY revenue guidance above Street estimates. Varonis Announces First Quarter 2026 Financial Results
• Positive Sentiment: SaaS ARR acceleration — management signaled total SaaS ARR guidance of roughly $814M–$845M for 2026 after Q1; total SaaS ARR was reported at $683.2M (big YoY growth) and SaaS ARR ex-conversions rose ~29% YoY — a key metric for recurring revenue strength. Varonis signals $814M-$845M 2026 total SaaS ARR
• Positive Sentiment: Analyst bullishness — multiple firms raised targets/ratings after results (examples: Wedbush to $37/outperform, Wells Fargo to $35/overweight, Needham/Susquehanna to $36, Barclays/Stephens to $33), signaling renewed sell-side confidence and scope for upside. These Analysts Increase Their Forecasts On Varonis Systems Following Q1 Results
• Neutral Sentiment: Product / M&A progress — company launched Varonis Atlas (leveraging the AllTrue.ai acquisition) and posted the earnings deck and call transcript for deeper investor review; these items help validate strategy but impact is medium-term. View Press Release / Slide Deck
• Negative Sentiment: Profitability and longer-term technicals — Varonis remains unprofitable on a net-margin and ROE basis, and its 200‑day moving average sits above the current price, underscoring residual execution and valuation risks despite the beat. Market data and metrics

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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