Varonis Systems, Inc. (NASDAQ:VRNS) Sees Large Decrease in Short Interest

Key Points

• Short interest fell 15.2% in March to 6,034,766 shares (about 5.3% of outstanding shares), leaving a short-interest ratio of roughly 3.2 days based on average daily volume.
• Insider purchases increased exposure—EVP David Bass bought 2,980 shares at $23.47 and Director Avrohom J. Kess bought 17,800 shares at $22.29—bringing insiders' net buys to 25,780 shares in the last 90 days and total insider ownership to 2.30%.
• Earnings and outlook: Varonis beat quarterly EPS estimates ($0.08 vs. $0.03) with revenue up 9.4% year-over-year, set FY2026 guidance of $0.060–0.100 EPS, and carries an average analyst target of $42.79 with a "Moderate Buy" consensus.

Varonis Systems, Inc. (NASDAQ:VRNS - Get Free Report) saw a large decrease in short interest during the month of March. As of March 13th, there was short interest totaling 6,034,766 shares, a decrease of 15.2% from the February 26th total of 7,114,475 shares. Approximately 5.3% of the company's shares are short sold. Based on an average daily volume of 1,907,185 shares, the short-interest ratio is presently 3.2 days.

Insider Activity at Varonis Systems

In other Varonis Systems news, EVP David Bass bought 2,980 shares of the company's stock in a transaction on Monday, February 9th. The stock was acquired at an average price of $23.47 per share, for a total transaction of $69,940.60. Following the completion of the transaction, the executive vice president directly owned 1,042,924 shares of the company's stock, valued at approximately $24,477,426.28. This represents a 0.29% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Avrohom J. Kess bought 17,800 shares of the company's stock in a transaction on Friday, February 6th. The shares were acquired at an average price of $22.29 per share, with a total value of $396,762.00. Following the transaction, the director directly owned 49,403 shares of the company's stock, valued at approximately $1,101,192.87. This trade represents a 56.32% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have bought 25,780 shares of company stock worth $579,403. Insiders own 2.30% of the company's stock.

Institutional Trading of Varonis Systems

A number of hedge funds have recently added to or reduced their stakes in the business. Stephens Inc. AR grew its holdings in Varonis Systems by 1.9% during the 3rd quarter. Stephens Inc. AR now owns 9,105 shares of the technology company's stock worth $523,000 after acquiring an additional 171 shares in the last quarter. Inspire Investing LLC lifted its position in shares of Varonis Systems by 2.9% in the 3rd quarter. Inspire Investing LLC now owns 7,878 shares of the technology company's stock worth $453,000 after purchasing an additional 222 shares during the period. Arizona State Retirement System lifted its position in shares of Varonis Systems by 0.9% in the 3rd quarter. Arizona State Retirement System now owns 33,114 shares of the technology company's stock worth $1,903,000 after purchasing an additional 287 shares during the period. Signaturefd LLC boosted its stake in shares of Varonis Systems by 47.8% during the fourth quarter. Signaturefd LLC now owns 995 shares of the technology company's stock valued at $33,000 after purchasing an additional 322 shares in the last quarter. Finally, Savant Capital LLC boosted its stake in shares of Varonis Systems by 1.7% during the third quarter. Savant Capital LLC now owns 20,016 shares of the technology company's stock valued at $1,150,000 after purchasing an additional 339 shares in the last quarter. 95.65% of the stock is owned by hedge funds and other institutional investors.

Varonis Systems Stock Down 0.2%

Shares of NASDAQ VRNS opened at $21.17 on Tuesday. Varonis Systems has a 52-week low of $20.06 and a 52-week high of $63.90. The firm has a market capitalization of $2.49 billion, a price-to-earnings ratio of -18.57 and a beta of 0.62. The stock has a 50 day moving average price of $25.62 and a 200 day moving average price of $36.83. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.97 and a current ratio of 1.97.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last issued its earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share for the quarter, beating analysts' consensus estimates of $0.03 by $0.05. Varonis Systems had a negative return on equity of 22.95% and a negative net margin of 20.74%.The business had revenue of $173.37 million during the quarter, compared to analyst estimates of $168.66 million. During the same period in the previous year, the company posted $0.18 EPS. Varonis Systems's revenue was up 9.4% on a year-over-year basis. 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. Sell-side analysts expect that Varonis Systems will post -0.83 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on VRNS. UBS Group set a $50.00 price target on Varonis Systems in a research note on Monday, January 26th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Varonis Systems in a research report on Wednesday, January 21st. Barclays reduced their target price on Varonis Systems from $50.00 to $45.00 and set an "overweight" rating on the stock in a research note on Monday, January 5th. Wedbush decreased their target price on Varonis Systems from $53.00 to $35.00 and set an "outperform" rating for the company in a research report on Wednesday, February 4th. Finally, William Blair reissued a "market perform" rating on shares of Varonis Systems in a research note on Monday, March 23rd. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Varonis Systems currently has an average rating of "Moderate Buy" and an average target price of $42.79.

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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