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

Key Points

• Susquehanna raised its Varonis Systems price target from $36 to $55 and maintained a positive rating, implying roughly 32% upside from the stock’s $41.72 price. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $47.68.
• Varonis exceeded quarterly expectations, reporting $0.04 adjusted EPS versus $0.01 expected and revenue of $180.0 million, up 18.3% year over year. The company also issued stronger-than-expected full-year and third-quarter earnings guidance.
• Despite strong results and analyst support, the stock fell $2.95 on Wednesday and remains unprofitable, with a negative 19.75% net margin and negative 20.27% return on equity.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price target increased by investment analysts at Susquehanna from $36.00 to $55.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has a "positive" rating on the technology company's stock. Susquehanna's price objective would indicate a potential upside of 31.82% from the company's current price.

Several other research firms have also recently weighed in on VRNS. Barclays reduced their price target on Varonis Systems from $52.00 to $50.00 and set an "overweight" rating on the stock in a report on Wednesday. TD Cowen lifted their target price on shares of Varonis Systems from $50.00 to $53.00 and gave the stock a "buy" rating in a research report on Wednesday. Citigroup reissued an "overweight" rating on shares of Varonis Systems in a report on Friday, July 24th. Royal Bank Of Canada upped their price target on shares of Varonis Systems from $30.00 to $36.00 and gave the company an "outperform" rating in a research report on Wednesday, April 29th. Finally, Needham & Company LLC raised their target price on Varonis Systems from $40.00 to $50.00 and gave the stock a "buy" rating in a research report on Wednesday. Eighteen investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Varonis Systems presently has an average rating of "Moderate Buy" and a consensus target price of $47.68.

Varonis Systems Price Performance

NASDAQ:VRNS traded down $2.95 on Wednesday, hitting $41.72. The company had a trading volume of 2,228,630 shares, compared to its average volume of 2,683,813. Varonis Systems has a 52 week low of $19.70 and a 52 week high of $63.90. The company has a current ratio of 1.69, a quick ratio of 1.69 and a debt-to-equity ratio of 1.00. The stock has a market capitalization of $4.79 billion, a price-to-earnings ratio of -36.40 and a beta of 0.83. The firm has a 50 day moving average of $38.64 and a two-hundred day moving average of $30.56.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.03. Varonis Systems had a negative net margin of 19.75% and a negative return on equity of 20.27%. The company had revenue of $180.02 million during the quarter, compared to the consensus estimate of $176.83 million. During the same period in the prior year, the business earned $0.03 earnings per share. The company's revenue for the quarter was up 18.3% compared to the same quarter last year. 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. On average, research analysts anticipate that Varonis Systems will post -1.05 earnings per share for the current year.

Institutional Investors Weigh In On Varonis Systems

A number of hedge funds have recently added to or reduced their stakes in VRNS. Signaturefd LLC lifted its position in Varonis Systems by 47.8% in the 4th quarter. Signaturefd LLC now owns 995 shares of the technology company's stock valued at $33,000 after acquiring an additional 322 shares in the last quarter. Benjamin Edwards Inc. grew its holdings in Varonis Systems by 5.5% during the second quarter. Benjamin Edwards Inc. now owns 6,692 shares of the technology company's stock worth $340,000 after buying an additional 351 shares in the last quarter. Amundi raised its position in Varonis Systems by 0.7% in the 3rd quarter. Amundi now owns 52,886 shares of the technology company's stock valued at $3,212,000 after buying an additional 387 shares during the last quarter. Osaic Holdings Inc. lifted its stake in Varonis Systems by 10.5% during the 2nd quarter. Osaic Holdings Inc. now owns 4,647 shares of the technology company's stock valued at $234,000 after acquiring an additional 440 shares in the last quarter. Finally, Allworth Financial LP boosted its holdings in Varonis Systems by 201.3% during the 3rd quarter. Allworth Financial LP now owns 693 shares of the technology company's stock worth $40,000 after acquiring an additional 463 shares during the last quarter. 95.65% of the stock is currently owned by institutional investors.

Varonis Systems News Summary

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

• Positive Sentiment: Strong Q2 results: Varonis reported adjusted EPS of $0.04, exceeding the $0.01 consensus estimate, while revenue rose 18.3% year over year to $180.0 million, above expectations of $176.8 million. Varonis Announces Second Quarter 2026 Financial Results
• Positive Sentiment: SaaS momentum remained healthy: Total SaaS annual recurring revenue reached $726.0 million, up 52% year over year, while SaaS ARR excluding conversions increased 25%. Management also cited growth in new customer accounts and momentum in Atlas, Interceptor and Database Activity Monitoring. Q2 Financial Results
• Positive Sentiment: Guidance was raised well above analyst expectations: Varonis forecast third-quarter EPS of $0.02-$0.03 versus consensus for a $0.04 loss, and full-year EPS of $0.14-$0.15 versus a projected $0.11 loss. Full-year revenue guidance of $735 million-$739 million was also slightly above consensus. Analysts subsequently maintained or raised targets, including TD Cowen at $53, JPMorgan at $55, Needham at $50 and Rosenblatt at $55. Analyst Ratings and Price Targets
• Neutral Sentiment: Barclays lowered its price target from $52 to $50 but retained an “overweight” rating, while Baird raised its target from $40 to $45 and kept a “neutral” rating. These actions indicate continued confidence in the business, but also more measured expectations after the earnings release. Analyst Ratings
• Negative Sentiment: The market reaction has been unfavorable despite the headline beat. Varonis remains unprofitable, with a reported negative net margin of 19.75% and negative return on equity of 20.27%. Investors may also have expected an even stronger earnings outlook given the stock’s prior rally. Q2 Results and Stock Reaction

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.