Varonis Systems, Inc. (NASDAQ:VRNS) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst consensus: 23 analysts rate Varonis an average of "Moderate Buy" (15 buys, 6 holds, 1 sell, 1 strong buy) with a 1‑year average target of $43.15.
• Insider buying: Directors Avrohom J. Kess and John J. Gavin Jr. bought 17,800 and 5,000 shares respectively on Feb 6, contributing to 25,780 insider shares purchased last quarter worth $579,403; insiders now own 2.30% of the company.
• Results and guidance: Varonis beat Q results (EPS $0.08 vs $0.03 est., revenue $173.37M vs $168.66M) but remains unprofitable (net margin -20.74%) and guided FY2026 EPS of $0.06–0.10 with Q1 guidance of -0.06–-0.05.

Varonis Systems, Inc. (NASDAQ:VRNS - Get Free Report) has been given an average rating of "Moderate Buy" by the twenty-three research firms that are presently covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, six have given a hold recommendation, fifteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $43.15.

Several equities research analysts have recently issued reports on VRNS shares. Cantor Fitzgerald lowered their price target on Varonis Systems from $50.00 to $35.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 4th. Morgan Stanley reissued an "equal weight" rating and set a $41.00 price objective (down from $44.00) on shares of Varonis Systems in a research report on Monday, January 26th. William Blair restated a "market perform" rating on shares of Varonis Systems in a research note on Monday. B. Riley Financial lowered their target price on Varonis Systems from $58.00 to $45.00 and set a "buy" rating on the stock in a report on Wednesday, February 4th. Finally, Citigroup dropped their price target on Varonis Systems from $37.00 to $28.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 4th.

Insider Transactions at Varonis Systems

In related news, Director Avrohom J. Kess purchased 17,800 shares of Varonis Systems stock in a transaction on Friday, February 6th. The stock was purchased at an average cost of $22.29 per share, with a total value of $396,762.00. Following the acquisition, the director directly owned 49,403 shares in the company, valued at approximately $1,101,192.87. This trade represents a 56.32% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director John J. Gavin, Jr. purchased 5,000 shares of Varonis Systems stock in a transaction on Friday, February 6th. The stock was bought at an average cost of $22.54 per share, with a total value of $112,700.00. Following the completion of the acquisition, the director owned 273,666 shares in the company, valued at approximately $6,168,431.64. This trade represents a 1.86% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have purchased 25,780 shares of company stock worth $579,403. Insiders own 2.30% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in VRNS. Dynamic Technology Lab Private Ltd bought a new stake in shares of Varonis Systems in the first quarter valued at about $233,000. Caxton Associates LLP bought a new position in Varonis Systems during the first quarter valued at about $200,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Varonis Systems by 11.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 619,257 shares of the technology company's stock valued at $25,049,000 after acquiring an additional 64,636 shares in the last quarter. Franklin Resources Inc. raised its holdings in Varonis Systems by 627.1% in the 2nd quarter. Franklin Resources Inc. now owns 272,886 shares of the technology company's stock valued at $13,849,000 after acquiring an additional 235,355 shares in the last quarter. Finally, Rhumbline Advisers lifted its position in shares of Varonis Systems by 2.8% in the 2nd quarter. Rhumbline Advisers now owns 178,932 shares of the technology company's stock worth $9,081,000 after acquiring an additional 4,948 shares during the period. Institutional investors and hedge funds own 95.65% of the company's stock.

Varonis Systems Trading Up 2.1%

NASDAQ:VRNS opened at $21.83 on Friday. The company's 50 day moving average is $26.11 and its 200-day moving average is $37.61. The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.76. Varonis Systems has a 12 month low of $20.06 and a 12 month high of $63.90. The firm has a market cap of $2.56 billion, a price-to-earnings ratio of -19.15 and a beta of 0.61.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.05. The business had revenue of $173.37 million during the quarter, compared to the consensus estimate of $168.66 million. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 22.95%. Varonis Systems's quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.18 EPS. Varonis Systems has set its FY 2026 guidance at 0.060-0.100 EPS and its Q1 2026 guidance at -0.060--0.050 EPS. Equities analysts anticipate that Varonis Systems will post -0.83 EPS for the current year.

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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