Varonis Systems, Inc. (NASDAQ:VRNS) Short Interest Update

Key Points

• Short interest jumped 21.4% in April to 8,292,783 shares, representing about 7.4% of the company's shares sold short and a short-interest ratio of 3.6 days based on average daily volume.
• Q1 results and guidance beat expectations: Varonis reported $0.06 EPS (vs. -$0.05 expected) and $173.1M revenue (+26.9% YoY), and raised FY‑2026 EPS guidance to $0.110–0.120 and Q2 guidance to $0.000–0.010.
• SaaS ARR acceleration, product launch and analyst upgrades: Management signaled $814M–$845M 2026 total SaaS ARR and launched Varonis Atlas (AI-driven), prompting multiple analyst price‑target increases and a consensus "Moderate Buy" with an average target of $41.32.

Varonis Systems, Inc. (NASDAQ:VRNS - Get Free Report) was the target of a significant growth in short interest during the month of April. As of April 15th, there was short interest totaling 8,292,783 shares, a growth of 21.4% from the March 31st total of 6,830,329 shares. Approximately 7.4% of the shares of the company are sold short. Based on an average daily volume of 2,289,639 shares, the short-interest ratio is currently 3.6 days.

Varonis Systems Stock Up 7.3%

Shares of VRNS opened at $27.29 on Thursday. The business's 50 day moving average is $23.35 and its 200 day moving average is $31.51. The company has a market capitalization of $3.13 billion, a PE ratio of -23.94 and a beta of 0.68. Varonis Systems has a 12-month low of $19.70 and a 12-month high of $63.90. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.76.

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

Insider Buying and Selling at Varonis Systems

In other Varonis Systems news, EVP David Bass acquired 2,980 shares of the company's stock in a transaction that occurred on Monday, February 9th. The shares were bought at an average price of $23.47 per share, with a total value of $69,940.60. Following the completion of the acquisition, the executive vice president owned 1,042,924 shares in the company, valued at $24,477,426.28. This represents a 0.29% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John J. Gavin, Jr. acquired 5,000 shares of the company's stock in a transaction that occurred on Friday, February 6th. The stock was acquired at an average cost of $22.54 per share, for a total transaction of $112,700.00. Following the acquisition, the director owned 273,666 shares of the company's stock, valued at $6,168,431.64. The trade was a 1.86% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 25,780 shares of company stock worth $579,403 in the last three months. 2.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Varonis Systems

Institutional investors have recently bought and sold shares of the stock. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Varonis Systems in the first quarter worth about $233,000. Caxton Associates LLP bought a new stake in Varonis Systems in the 1st quarter worth approximately $200,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Varonis Systems by 11.7% during 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 worth $25,049,000 after acquiring an additional 64,636 shares in the last quarter. Russell Investments Group Ltd. raised its holdings in shares of Varonis Systems by 2.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 22,811 shares of the technology company's stock worth $1,158,000 after acquiring an additional 628 shares in the last quarter. Finally, Invesco Ltd. boosted its position in shares of Varonis Systems by 8.6% during the 2nd quarter. Invesco Ltd. now owns 96,536 shares of the technology company's stock valued at $4,899,000 after acquiring an additional 7,618 shares during the last quarter. 95.65% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have recently commented on VRNS shares. Weiss Ratings restated a "sell (d-)" rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Needham & Company LLC boosted their price target on Varonis Systems from $30.00 to $36.00 and gave the company a "buy" rating in a report on Wednesday. Stephens upped their price target on Varonis Systems from $30.00 to $33.00 and gave the stock an "equal weight" rating in a research report on Wednesday. Royal Bank Of Canada raised their price objective on Varonis Systems from $30.00 to $36.00 and gave the stock an "outperform" rating in a research note on Wednesday. Finally, Barclays lifted their price objective on Varonis Systems from $28.00 to $33.00 and gave the company an "overweight" rating in a research report on Wednesday. Fifteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $41.32.

Trending Headlines about Varonis Systems

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

• Positive Sentiment: Q1 beat and upgraded guidance — Varonis reported $0.06 EPS (vs. loss expected), revenue of $173.1M (above estimates), raised FY 2026 EPS guidance to $0.110–0.120 and Q2 EPS to $0.000–0.010 — guidance beats consensus and is a key driver of the rally. Varonis Announces First Quarter 2026 Financial Results
• Positive Sentiment: Strong SaaS ARR acceleration — management highlighted total SaaS ARR growth (reported and guided ranges) and flagged $814M–$845M 2026 total SaaS ARR in commentary, supporting the subscription transition thesis and higher long-term revenue visibility. Varonis signals $814M-$845M 2026 total SaaS ARR
• Positive Sentiment: Analyst upgrades and price-target increases — a broad set of firms (JPMorgan, UBS, DA Davidson, RBC, Wedbush, Wells Fargo, Barclays, Needham, Susquehanna, others) raised targets/ratings after the quarter, adding buy-side momentum. These Analysts Increase Their Forecasts On Varonis Systems
• Positive Sentiment: New product / capability — Varonis launched Varonis Atlas (powered by AllTrue.ai acquisition), which management positions as enhancing product differentiation and AI-driven security offerings. Q1 Results & Product Launch
• Neutral Sentiment: Volume and technicals — trading volume is elevated versus average and the stock remains below its 200-day moving average, so momentum could be short-lived if follow-through fades. (No single news link.)
• Negative Sentiment: Shareholder litigation inquiry — Kuehn Law announced an investigation into whether Varonis officers/directors misled investors about customer conversion capability to SaaS, which introduces litigation risk and could temper sentiment. Kuehn Law Encourages Investors of Varonis Systems, Inc. to Contact Law Firm

About Varonis Systems

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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