Varonis Systems (NASDAQ:VRNS) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Varonis Systems has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating, indicating significant concerns over the company's performance.
• Despite this downgrade, Varonis Systems has received mixed ratings from other analysts, with several maintaining "buy" or "overweight" ratings and setting target prices ranging from $60 to $80.
• Insider selling activity has been noted, with key executives offloading substantial amounts of stock, suggesting potential concerns about the company's future prospects.

Varonis Systems (NASDAQ:VRNS - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Monday,Zacks.com reports.

Several other equities research analysts have also recently issued reports on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $60.00 price objective on shares of Varonis Systems in a research report on Tuesday, July 22nd. B. Riley began coverage on shares of Varonis Systems in a research report on Tuesday, August 26th. They issued a "buy" rating and a $80.00 price target for the company. Wedbush reaffirmed an "outperform" rating and issued a $65.00 target price on shares of Varonis Systems in a report on Wednesday, September 3rd. Citigroup upped their target price on shares of Varonis Systems from $51.00 to $58.00 and gave the stock a "neutral" rating in a research report on Monday, August 18th. Finally, Wells Fargo & Company upgraded shares of Varonis Systems from an "equal weight" rating to an "overweight" rating and upped their target price for the stock from $51.00 to $70.00 in a research report on Monday, August 11th. Fourteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Varonis Systems presently has a consensus rating of "Moderate Buy" and an average price target of $64.18.

Varonis Systems Stock Performance

Shares of VRNS stock opened at $61.15 on Monday. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 1.32. Varonis Systems has a 52 week low of $36.53 and a 52 week high of $63.90. The stock has a market capitalization of $6.85 billion, a PE ratio of -66.47 and a beta of 0.64. The firm has a 50 day moving average of $58.11 and a two-hundred day moving average of $51.01.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The technology company reported $0.03 EPS for the quarter, beating the consensus estimate of $0.01 by $0.02. The company had revenue of $152.16 million during the quarter, compared to analysts' expectations of $147.80 million. Varonis Systems had a negative net margin of 17.30% and a negative return on equity of 23.06%. The firm's revenue was up 16.7% compared to the same quarter last year. During the same quarter last year, the company posted $0.05 EPS. 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, research analysts predict that Varonis Systems will post -0.83 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Den Bosch Fred Van sold 3,000 shares of Varonis Systems stock in a transaction on Friday, August 1st. The shares were sold at an average price of $55.08, for a total transaction of $165,240.00. Following the sale, the director owned 128,666 shares of the company's stock, valued at $7,086,923.28. The trade was a 2.28% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Guy Melamed sold 51,889 shares of Varonis Systems stock in a transaction on Friday, August 1st. The stock was sold at an average price of $55.10, for a total transaction of $2,859,083.90. Following the sale, the chief financial officer directly owned 470,602 shares in the company, valued at $25,930,170.20. This trade represents a 9.93% 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 worth $6,429,405. 2.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Varonis Systems

A number of institutional investors have recently modified their holdings of VRNS. Bessemer Group Inc. grew its position in shares of Varonis Systems by 179.1% during the 2nd quarter. Bessemer Group Inc. now owns 494 shares of the technology company's stock valued at $25,000 after buying an additional 317 shares during the last quarter. Quarry LP boosted its holdings in shares of Varonis Systems by 31.8% during the 1st quarter. Quarry LP now owns 1,082 shares of the technology company's stock worth $44,000 after buying an additional 261 shares during the period. Farther Finance Advisors LLC raised its position in shares of Varonis Systems by 1,062.6% during the third quarter. Farther Finance Advisors LLC now owns 1,058 shares of the technology company's stock valued at $61,000 after buying an additional 967 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Varonis Systems by 344.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,213 shares of the technology company's stock worth $62,000 after acquiring an additional 940 shares during the period. Finally, BI Asset Management Fondsmaeglerselskab A S bought a new position in Varonis Systems during the 1st quarter valued at about $69,000. 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.

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