Varonis Systems (NASDAQ:VRNS) Shares Gap Up Following Earnings Beat

Key Points

• Varonis Systems shares gapped up after reporting better-than-expected quarterly earnings, with an EPS of $0.03 compared to analysts' estimates of $0.01.
• The company's revenue for the quarter was $152.16 million, surpassing the consensus estimate of $147.80 million, and showing a 16.7% increase from the previous year.
• Analysts have varying outlooks on the stock, with five rating it as hold, fourteen as buy, and one as strong buy, leading to an average rating of "Moderate Buy."

Varonis Systems, Inc. (NASDAQ:VRNS - Get Free Report)'s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $54.23, but opened at $57.81. Varonis Systems shares last traded at $55.44, with a volume of 589,939 shares trading hands.

The technology company reported $0.03 earnings per share for the quarter, beating analysts' consensus estimates of $0.01 by $0.02. The business had revenue of $152.16 million during the quarter, compared to the consensus estimate of $147.80 million. Varonis Systems had a negative net margin of 17.30% and a negative return on equity of 22.01%. The company's revenue for the quarter was up 16.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.05 EPS.

Analyst Ratings Changes

Several research firms recently commented on VRNS. JPMorgan Chase & Co. dropped their price objective on Varonis Systems from $55.00 to $45.00 and set an "overweight" rating on the stock in a research report on Monday, April 28th. Wall Street Zen raised Varonis Systems from a "sell" rating to a "hold" rating in a research note on Monday, April 28th. Susquehanna lifted their target price on Varonis Systems from $55.00 to $65.00 and gave the stock a "positive" rating in a report on Wednesday. Jefferies Financial Group raised Varonis Systems from a "hold" rating to a "buy" rating and lifted their target price for the company from $50.00 to $65.00 in a research report on Thursday, July 24th. Finally, Royal Bank Of Canada boosted their price target on Varonis Systems from $58.00 to $64.00 and gave the stock an "outperform" rating in a research report on Wednesday. Five analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company's stock. Based on data from MarketBeat, Varonis Systems currently has a consensus rating of "Moderate Buy" and a consensus target price of $57.31.

Insider Activity at Varonis Systems

In other Varonis Systems news, Director Den Bosch Fred Van sold 6,000 shares of the stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $50.00, for a total transaction of $300,000.00. Following the transaction, the director owned 131,666 shares in the company, valued at approximately $6,583,300. This represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 2.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Varonis Systems

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Brown Advisory Inc. acquired a new stake in Varonis Systems in the first quarter valued at $346,000. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Varonis Systems by 18.5% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 8,465 shares of the technology company's stock worth $352,000 after acquiring an additional 1,323 shares in the last quarter. Stephens Investment Management Group LLC raised its position in shares of Varonis Systems by 14.7% during the 1st quarter. Stephens Investment Management Group LLC now owns 1,604,558 shares of the technology company's stock worth $64,904,000 after purchasing an additional 205,781 shares during the last quarter. Penserra Capital Management LLC raised its holdings in Varonis Systems by 52.2% in the 1st quarter. Penserra Capital Management LLC now owns 1,542,071 shares of the technology company's stock valued at $62,376,000 after acquiring an additional 529,182 shares during the last quarter. Finally, Legacy Advisors LLC increased its holdings in shares of Varonis Systems by 164.5% during the 1st quarter. Legacy Advisors LLC now owns 21,090 shares of the technology company's stock worth $853,000 after buying an additional 13,115 shares during the last quarter. Institutional investors and hedge funds own 95.65% of the company's stock.

Varonis Systems Trading Down 1.9%

The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 1.23. The business's 50-day moving average is $50.60 and its two-hundred day moving average is $45.45. The stock has a market capitalization of $6.13 billion, a PE ratio of -59.61 and a beta of 0.76.

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.