Varonis Systems (NASDAQ:VRNS) Price Target Raised to $33.00

Key Points

• Price target raised to $33: Stephens increased its price objective on Varonis to $33 (equal‑weight), implying ~25.5% upside, while the consensus across analysts remains a "Moderate Buy" with an average target of $41.11.
• Q1 beat and raised guidance: Varonis reported $0.06 EPS vs. ($0.05) expected and revenue of $173.1M (up ~26.9% YoY), and management raised FY26 and Q2 guidance, signaling accelerating top‑line execution.
• Profitability and valuation risks despite insider buying: The company still posts negative GAAP profitability (net margin ~-20.7%, negative ROE) and trades near $26.29 versus a 52‑week high of $63.90, although insiders have recently purchased shares and institutions own ~95.7% of the stock.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price objective increased by investment analysts at Stephens from $30.00 to $33.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has an "equal weight" rating on the technology company's stock. Stephens' target price would indicate a potential upside of 25.51% from the company's previous close.

Several other brokerages have also issued reports on VRNS. Weiss Ratings restated a "sell (d-)" rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Cantor Fitzgerald lowered their price objective on Varonis Systems from $50.00 to $35.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 4th. Piper Sandler upgraded Varonis Systems from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $45.00 to $47.00 in a research note on Monday, January 5th. Barclays lowered their price objective on Varonis Systems from $38.00 to $28.00 and set an "overweight" rating on the stock in a research note on Monday, April 13th. Finally, William Blair reiterated a "market perform" rating on shares of Varonis Systems in a research note on Monday, March 23rd. One investment 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 assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $41.11.

Varonis Systems Stock Performance

VRNS traded up $0.85 on Wednesday, hitting $26.29. 746,367 shares of the stock traded hands, compared to its average volume of 2,931,926. Varonis Systems has a 52 week low of $19.70 and a 52 week 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. The firm has a market capitalization of $3.02 billion, a PE ratio of -23.50 and a beta of 0.68. The business has a fifty day moving average price of $23.32 and a two-hundred day moving average price of $31.54.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The technology company reported $0.06 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $173.13 million for the quarter, compared to analyst estimates of $165.52 million. Varonis Systems's quarterly 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. On average, research analysts predict that Varonis Systems will post -0.99 EPS for the current fiscal year.

Insider Activity

In other Varonis Systems news, Director John J. Gavin, Jr. bought 5,000 shares of Varonis Systems 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 $6,168,431.64. The trade was a 1.86% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP David Bass bought 2,980 shares of Varonis Systems stock in a transaction dated Monday, February 9th. The stock was acquired at an average cost of $23.47 per share, for a total transaction of $69,940.60. Following the completion of the acquisition, the executive vice president directly owned 1,042,924 shares in the company, valued at $24,477,426.28. This represents a 0.29% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have purchased 25,780 shares of company stock worth $579,403. Company insiders own 2.30% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Hodges Capital Management Inc. boosted its holdings in shares of Varonis Systems by 146.3% in the 3rd quarter. Hodges Capital Management Inc. now owns 126,450 shares of the technology company's stock worth $7,267,000 after acquiring an additional 75,120 shares in the last quarter. Readystate Asset Management LP acquired a new position in shares of Varonis Systems in the 3rd quarter worth approximately $13,731,000. Allspring Global Investments Holdings LLC boosted its holdings in shares of Varonis Systems by 69.5% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,646,351 shares of the technology company's stock worth $95,192,000 after acquiring an additional 674,807 shares in the last quarter. AustralianSuper Pty Ltd boosted its holdings in shares of Varonis Systems by 29.6% in the 3rd quarter. AustralianSuper Pty Ltd now owns 602,379 shares of the technology company's stock worth $34,619,000 after acquiring an additional 137,713 shares in the last quarter. Finally, Ion Asset Management Ltd. acquired a new position in shares of Varonis Systems in the 3rd quarter worth approximately $5,172,000. 95.65% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Varonis Systems

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

• Positive Sentiment: Q1 earnings and revenue beat expectations — Varonis reported $0.06 EPS vs. consensus of ($0.05) and revenue of $173.1M (up ~26.9% YoY), signaling accelerating top-line execution. Read More.
• Positive Sentiment: Raised FY26 and Q2 guidance above Street estimates — management set FY26 EPS $0.110–0.120 and Q2 EPS $0.000–0.010, with revenue ranges above consensus, implying improving profitability trajectory. Read More.
• Positive Sentiment: Analyst upgrade / price-target increase — Needham raised its price target to $36 and reiterated a Buy rating, signaling institutional confidence and ~40% upside vs. the prior reference price. Read More.
• Positive Sentiment: Strong ARR growth and product news — SaaS ARR (ex-conversions) grew ~29% YoY and total SaaS ARR jumped materially; Varonis launched "Varonis Atlas" (AI-driven product tied to AllTrue.ai acquisition), supporting long-term SaaS monetization. Read More.
• Neutral Sentiment: Earnings call transcript available — investors can review management commentary and Q&A for color on customer demand, churn, and AI roadmap. Read More.
• Neutral Sentiment: Analyst and media coverage — several outlets (Zacks, TipRanks, Yahoo) published analyses comparing metrics to estimates; useful for drilling into subscription metrics and margin trajectory. Read More.
• Negative Sentiment: Profitability remains a concern — despite the beat, Varonis still reported a negative net margin (~-20.7%) and negative return on equity, reminding investors that GAAP profitability and cash conversion remain works in progress. Read More.

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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