Varonis Systems (NASDAQ:VRNS) Hits New 12-Month Low - Should You Sell?

Key Points

• Varonis hit a new 52-week low intraday at $20.02 (last $20.13), falling about 6.5% in the session.
• Analyst sentiment is mixed: the consensus rating is a Moderate Buy with a $42.79 price target despite recent target cuts from JPMorgan, RBC and Wedbush and a sell from Weiss.
• Fundamentals are mixed—Q4 revenue rose 9.4% and EPS beat estimates, but the company has a negative net margin and ROE with conservative FY2026 guidance (EPS $0.06–0.10) while analysts still model a loss for the current year; insiders have made modest purchases and institutions own roughly 95.6% of the shares.

Varonis Systems, Inc. (NASDAQ:VRNS - Get Free Report) hit a new 52-week low during mid-day trading on Friday . The company traded as low as $20.02 and last traded at $20.13, with a volume of 936062 shares traded. The stock had previously closed at $21.53.

Analyst Ratings Changes

A number of analysts have recently issued reports on VRNS shares. William Blair reaffirmed a "market perform" rating on shares of Varonis Systems in a research report on Monday, March 23rd. JPMorgan Chase & Co. dropped their target price on Varonis Systems from $50.00 to $38.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 4th. Royal Bank Of Canada dropped their target price on Varonis Systems from $60.00 to $41.00 and set an "outperform" rating on the stock in a research report on Monday, January 5th. Wedbush decreased their price target on Varonis Systems from $53.00 to $35.00 and set an "outperform" rating for the company in a research note on Wednesday, February 4th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Varonis Systems in a research note on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Varonis Systems has an average rating of "Moderate Buy" and a consensus price target of $42.79.

Varonis Systems Stock Down 6.5%

The firm has a market capitalization of $2.36 billion, a price-to-earnings ratio of -17.66 and a beta of 0.68. The stock has a 50 day moving average of $23.83 and a 200 day moving average of $35.19. 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 (NASDAQ:VRNS - Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 EPS for the quarter, topping analysts' consensus estimates 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 return on equity of 22.95% and a negative net margin of 20.74%.The company's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period last year, the firm earned $0.18 earnings per share. 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. As a group, analysts expect that Varonis Systems, Inc. will post -0.83 earnings per share for the current fiscal year.

Insider Buying and Selling at Varonis Systems

In related news, EVP David Bass bought 2,980 shares of the firm's stock in a transaction on Monday, February 9th. The stock was bought at an average cost of $23.47 per share, for a total transaction of $69,940.60. Following the completion of the purchase, the executive vice president directly owned 1,042,924 shares in the company, valued at approximately $24,477,426.28. The trade was a 0.29% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John J. Gavin, Jr. bought 5,000 shares of the firm's stock in a transaction on Friday, February 6th. The stock was bought at an average price of $22.54 per share, with a total value of $112,700.00. Following the completion of the purchase, the director owned 273,666 shares of the company's stock, valued at $6,168,431.64. This trade represents a 1.86% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders purchased a total of 25,780 shares of company stock worth $579,403 over the last ninety days. Company insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On Varonis Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of VRNS. Jacobs Levy Equity Management Inc. acquired a new position in Varonis Systems in the fourth quarter valued at approximately $48,263,000. First Trust Advisors LP boosted its stake in Varonis Systems by 40.6% in the fourth quarter. First Trust Advisors LP now owns 4,427,245 shares of the technology company's stock valued at $145,214,000 after acquiring an additional 1,279,002 shares during the period. Pictet Asset Management Holding SA boosted its stake in Varonis Systems by 99.1% in the fourth quarter. Pictet Asset Management Holding SA now owns 2,178,380 shares of the technology company's stock valued at $71,480,000 after acquiring an additional 1,084,267 shares during the period. Norges Bank acquired a new position in shares of Varonis Systems during the fourth quarter worth approximately $28,811,000. Finally, Clal Insurance Enterprises Holdings Ltd boosted its position in shares of Varonis Systems by 166.7% during the third quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,360,000 shares of the technology company's stock worth $78,159,000 after buying an additional 850,000 shares during the period. 95.65% of the stock is currently owned by institutional investors and hedge funds.

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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