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

Key Points

• Varonis Systems experienced a significant decrease in short interest, falling by 39.9% in August, with current short interest totaling 5,760,000 shares, representing 5.3% of its stock.
• Insider trading activity included CFO Guy Melamed selling 51,889 shares and Director Den Bosch Fred Van selling 3,000 shares, indicating a decrease in their positions.
• Wall Street analysts have a positive outlook for Varonis, with fourteen analysts rating it as a Buy and a revised average target price of $61.65 following recent earnings.

Varonis Systems, Inc. (NASDAQ:VRNS - Get Free Report) was the target of a significant decrease in short interest during the month of August. As of August 31st, there was short interest totaling 5,760,000 shares, a decrease of 39.9% from the August 15th total of 9,580,000 shares. Based on an average trading volume of 1,500,000 shares, the days-to-cover ratio is presently 3.8 days. Currently, 5.3% of the company's stock are sold short. Currently, 5.3% of the company's stock are sold short. Based on an average trading volume of 1,500,000 shares, the days-to-cover ratio is presently 3.8 days.

Varonis Systems Stock Up 0.2%

VRNS stock traded up $0.12 during trading on Friday, hitting $57.61. 1,161,040 shares of the stock traded hands, compared to its average volume of 1,537,016. Varonis Systems has a 1 year low of $36.53 and a 1 year high of $60.58. The firm's 50 day moving average is $55.64 and its two-hundred day moving average is $48.61. The stock has a market cap of $6.45 billion, a price-to-earnings ratio of -62.62 and a beta of 0.67. The company has a debt-to-equity ratio of 1.32, a current ratio of 1.38 and a quick ratio of 1.38.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The technology company reported $0.03 EPS for the quarter, beating the consensus estimate of $0.01 by $0.02. Varonis Systems had a negative net margin of 17.30% and a negative return on equity of 23.06%. The company had revenue of $152.16 million for the quarter, compared to the consensus estimate of $147.80 million. During the same period in the prior year, the firm posted $0.05 EPS. Varonis Systems's revenue for the quarter was up 16.7% on a year-over-year basis. Varonis Systems has set its FY 2025 guidance at 0.160-0.180 EPS. Q3 2025 guidance at 0.070-0.080 EPS. On average, sell-side analysts anticipate that Varonis Systems will post -0.83 EPS for the current year.

Analysts Set New Price Targets

A number of research analysts have issued reports on VRNS shares. Morgan Stanley increased their target price on shares of Varonis Systems from $59.00 to $66.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 2nd. Wells Fargo & Company raised shares of Varonis Systems from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $51.00 to $70.00 in a research note on Monday, August 11th. Needham & Company LLC reaffirmed a "buy" rating and issued a $70.00 price target on shares of Varonis Systems in a research note on Wednesday, September 3rd. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $60.00 price target on shares of Varonis Systems in a research note on Tuesday, July 22nd. Finally, Wedbush reaffirmed an "outperform" rating and issued a $65.00 price target on shares of Varonis Systems in a research note on Wednesday, September 3rd. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Varonis Systems currently has a consensus rating of "Moderate Buy" and a consensus price target of $61.65.

Insider Activity

In other Varonis Systems news, Director Den Bosch Fred Van sold 3,000 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $55.08, for a total transaction of $165,240.00. Following the completion of the transaction, the director owned 128,666 shares in the company, valued at $7,086,923.28. This trade represents a 2.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Guy Melamed sold 1,500 shares of Varonis Systems stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $59.59, for a total transaction of $89,385.00. Following the completion of the transaction, the chief financial officer owned 412,105 shares of the company's stock, valued at $24,557,336.95. This trade represents a 0.36% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 113,386 shares of company stock valued at $6,429,405. 2.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Varonis Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Osaic Holdings Inc. raised its position in shares of Varonis Systems by 10.5% during the second quarter. Osaic Holdings Inc. now owns 4,647 shares of the technology company's stock valued at $234,000 after buying an additional 440 shares during the last quarter. State of Wyoming raised its stake in Varonis Systems by 1,516.5% during the second quarter. State of Wyoming now owns 13,546 shares of the technology company's stock valued at $687,000 after purchasing an additional 12,708 shares in the last quarter. Castleark Management LLC bought a new position in Varonis Systems during the second quarter valued at $4,359,000. CANADA LIFE ASSURANCE Co increased its position in Varonis Systems by 3.4% during the second quarter. CANADA LIFE ASSURANCE Co now owns 209,656 shares of the technology company's stock valued at $10,633,000 after acquiring an additional 6,841 shares during the last quarter. Finally, Tower Research Capital LLC TRC increased its position in Varonis Systems by 449.6% during the second quarter. Tower Research Capital LLC TRC now owns 16,081 shares of the technology company's stock valued at $816,000 after acquiring an additional 13,155 shares during the last quarter. Institutional investors own 95.65% of the company's stock.

Varonis Systems Company Profile

Varonis Systems, Inc provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; source code, strategic and product plans; and other intellectual property.