Varonis Systems (NASDAQ:VRNS) Price Target Lowered to $28.00 at Barclays

Key Points

• Barclays cut its price target on Varonis from $38 to $28 while maintaining an "overweight" rating, with the new target implying roughly a 32.5% upside from the prior close.
• The analyst picture is mixed but tilted positive: MarketBeat's consensus is a "Moderate Buy" with an average target of $41.89, even as several firms recently trimmed targets (e.g., Needham to $30, RBC to $41).
• Varonis beat quarterly revenue and EPS estimates (revenue $173.4M, EPS $0.08; revenue +9.4% YoY) but still reports negative margins and provided cautious FY2026/Q1 guidance; insiders have been buying and institutional ownership is very high.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price target cut by investment analysts at Barclays from $38.00 to $28.00 in a research note issued on Monday,Benzinga reports. The brokerage presently has an "overweight" rating on the technology company's stock. Barclays's target price points to a potential upside of 32.46% from the stock's previous close.

Other research analysts also recently issued reports about the company. Needham & Company LLC dropped their price target on Varonis Systems from $55.00 to $30.00 and set a "buy" rating on the stock in a research note on Wednesday, February 4th. UBS Group set a $50.00 target price on Varonis Systems in a report on Monday, January 26th. Royal Bank Of Canada reduced their target price on Varonis Systems from $60.00 to $41.00 and set an "outperform" rating for the company in a report on Monday, January 5th. Wells Fargo & Company assumed coverage on Varonis Systems in a report on Tuesday, March 3rd. They issued an "overweight" rating and a $28.00 target price for the company. Finally, Morgan Stanley reissued an "equal weight" rating and set a $41.00 price objective (down from $44.00) on shares of Varonis Systems in a report on Monday, January 26th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $41.89.

Varonis Systems Stock Performance

VRNS opened at $21.14 on Monday. The stock has a market cap of $2.48 billion, a price-to-earnings ratio of -18.46 and a beta of 0.68. The business has a 50 day moving average of $23.63 and a 200-day moving average of $34.59. 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 has a 12-month low of $19.70 and a 12-month high of $63.90.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last released its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.05. Varonis Systems had a negative return on equity of 22.95% and a negative net margin of 20.74%.The business had revenue of $173.37 million during the quarter, compared to analysts' expectations of $168.66 million. During the same period last year, the firm posted $0.18 EPS. The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. 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. On average, equities research analysts expect that Varonis Systems will post -0.83 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director John J. Gavin, Jr. acquired 5,000 shares of the firm's stock in a transaction dated Friday, February 6th. The shares were acquired at an average cost of $22.54 per share, with a total value of $112,700.00. Following the acquisition, the director directly owned 273,666 shares of the company's stock, valued at approximately $6,168,431.64. The trade was a 1.86% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP David Bass bought 2,980 shares of the stock in a transaction dated Monday, February 9th. The shares were purchased at an average price of $23.47 per share, with a total value of $69,940.60. Following the completion of the transaction, 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 disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have bought 25,780 shares of company stock worth $579,403. Company insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On Varonis Systems

Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in Varonis Systems by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company's stock valued at $440,119,000 after purchasing an additional 822,925 shares in the last quarter. First Trust Advisors LP increased its position in shares of Varonis Systems by 40.6% in the 4th 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. RGM Capital LLC lifted its position in Varonis Systems by 17.1% during the 4th quarter. RGM Capital LLC now owns 3,160,093 shares of the technology company's stock worth $103,651,000 after acquiring an additional 460,580 shares during the period. Geode Capital Management LLC grew its stake in Varonis Systems by 5.7% during the 4th quarter. Geode Capital Management LLC now owns 2,833,180 shares of the technology company's stock valued at $92,943,000 after purchasing an additional 151,961 shares during the last quarter. Finally, Clearbridge Investments LLC increased its holdings in shares of Varonis Systems by 12.1% in the fourth quarter. Clearbridge Investments LLC now owns 2,544,180 shares of the technology company's stock valued at $83,449,000 after purchasing an additional 273,781 shares during the period. 95.65% of the stock is owned by hedge funds and other institutional investors.

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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