Varonis Systems (NASDAQ:VRNS) Posts Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• EPS beat: Varonis reported Q results of $0.06 EPS, beating the consensus of ($0.05) by $0.11, with revenue of $173.13M versus $165.52M, though the company still shows a negative ROE (-22.95%) and net margin (-20.74%).
• The stock traded up about 1.6% to $25.44 on the news, has a market cap of $2.92B and a negative P/E (-22.32), and sits between a 52‑week low/high of $19.70/$63.90 with a 50‑day/200‑day moving average of $23.32/$31.80.
• Analyst and insider activity: MarketBeat reports a consensus rating of "Moderate Buy" with a $41.89 target amid several recent upgrades and target changes, while insiders bought ~25,780 shares recently and institutions hold ~95.65% of the stock.

Varonis Systems (NASDAQ:VRNS - Get Free Report) posted its earnings results on Tuesday. The technology company reported $0.06 EPS for the quarter, topping analysts' consensus estimates of ($0.05) by $0.11, FiscalAI reports. The company had revenue of $173.13 million for the quarter, compared to the consensus estimate of $165.52 million. Varonis Systems had a negative return on equity of 22.95% and a negative net margin of 20.74%.

Varonis Systems Trading Up 1.6%

NASDAQ VRNS traded up $0.39 on Tuesday, hitting $25.44. 3,492,599 shares of the stock were exchanged, compared to its average volume of 2,947,365. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.97 and a current ratio of 1.97. The stock has a fifty day moving average price of $23.32 and a two-hundred day moving average price of $31.80. The firm has a market capitalization of $2.92 billion, a P/E ratio of -22.32 and a beta of 0.68. Varonis Systems has a 52-week low of $19.70 and a 52-week high of $63.90.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. DA Davidson upgraded shares of Varonis Systems from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $25.00 to $30.00 in a research report on Thursday, February 5th. Royal Bank Of Canada reduced their price target on shares of Varonis Systems from $60.00 to $41.00 and set an "outperform" rating on the stock in a research report on Monday, January 5th. Piper Sandler upgraded shares of Varonis Systems from a "neutral" rating to an "overweight" rating and boosted their price target for the stock from $45.00 to $47.00 in a research report on Monday, January 5th. Truist Financial reduced their price target on shares of Varonis Systems from $42.00 to $34.00 and set a "buy" rating on the stock in a research report on Wednesday, February 4th. Finally, Stephens assumed coverage on shares of Varonis Systems in a research report on Tuesday, December 30th. They issued an "equal weight" rating and a $40.00 price target on the stock. One research 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 assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $41.89.

Insiders Place Their Bets

In other news, EVP David Bass acquired 2,980 shares of the company's stock in a transaction on Monday, February 9th. The stock was bought at an average cost of $23.47 per share, with a total value of $69,940.60. Following the completion of the purchase, the executive vice president directly owned 1,042,924 shares of the company's stock, valued at $24,477,426.28. This represents a 0.29% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John J. Gavin, Jr. acquired 5,000 shares of the company's stock in a transaction on Friday, February 6th. The shares were purchased at an average cost of $22.54 per share, with a total value of $112,700.00. Following the completion of the purchase, the director directly 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 bought 25,780 shares of company stock valued at $579,403 over the last three months. 2.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Empowered Funds LLC purchased a new position in Varonis Systems during the fourth quarter worth $37,000. EverSource Wealth Advisors LLC boosted its stake in Varonis Systems by 344.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,213 shares of the technology company's stock worth $62,000 after buying an additional 940 shares during the period. Harvest Fund Management Co. Ltd purchased a new position in Varonis Systems during the third quarter worth $68,000. Advisory Services Network LLC purchased a new position in Varonis Systems during the third quarter worth $75,000. Finally, Advisors Asset Management Inc. boosted its stake in Varonis Systems by 684.9% during the fourth quarter. Advisors Asset Management Inc. now owns 3,650 shares of the technology company's stock worth $120,000 after buying an additional 3,185 shares during the period. 95.65% of the stock is owned by hedge funds and other institutional investors.

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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