Varonis Systems (NASDAQ:VRNS) Stock Price Down 5.8% - Time to Sell?

Key Points

• Varonis shares fell 5.8% intraday to about $22.34 on Tuesday while volume was down ~82% versus the average session; the stock has a market cap of ~$2.6 billion and trades well below its 50‑day ($26.87) and 200‑day ($38.07) moving averages.
• The company beat the quarter with EPS of $0.08 and revenue of $173.4M, but still reports a negative net margin and ROE and issued mixed guidance—FY2026 EPS guidance of $0.06–0.10 and Q1 guidance of -0.06 to -0.05—with analysts projecting a ~-$0.83 EPS for the current fiscal year.
• Wall Street sentiment is a consensus "Moderate Buy" with a mean price target of $43.15, though individual analyst targets and ratings vary widely (many buys, several holds and one sell).

Varonis Systems, Inc. (NASDAQ:VRNS - Get Free Report)'s share price fell 5.8% during mid-day trading on Tuesday . The company traded as low as $21.57 and last traded at $22.3410. 579,776 shares were traded during trading, a decline of 82% from the average session volume of 3,199,366 shares. The stock had previously closed at $23.72.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on VRNS shares. DA Davidson raised Varonis Systems from a "neutral" rating to a "buy" rating and increased their price target for the company from $25.00 to $30.00 in a research report on Thursday, February 5th. Citigroup cut their target price on shares of Varonis Systems from $37.00 to $28.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 4th. William Blair reaffirmed a "market perform" rating on shares of Varonis Systems in a report on Monday. Barclays decreased their price target on shares of Varonis Systems from $50.00 to $45.00 and set an "overweight" rating for the company in a research note on Monday, January 5th. Finally, Stephens assumed coverage on shares of Varonis Systems in a report on Tuesday, December 30th. They issued an "equal weight" rating and a $40.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $43.15.

Varonis Systems Trading Down 6.6%

The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.76. The stock has a market capitalization of $2.60 billion, a PE ratio of -19.36 and a beta of 0.62. The business's 50-day moving average is $26.87 and its two-hundred day moving average is $38.07.

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 (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $173.37 million for the quarter, compared to the consensus estimate of $168.66 million. During the same quarter last year, the business posted $0.18 EPS. The firm's quarterly revenue 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, analysts anticipate that Varonis Systems, Inc. will post -0.83 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP David Bass acquired 2,980 shares of the stock in a transaction that occurred on Monday, February 9th. The shares were purchased at an average cost of $23.47 per share, for a total transaction of $69,940.60. Following the transaction, the executive vice president directly owned 1,042,924 shares in the company, valued at approximately $24,477,426.28. This represents a 0.29% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director John J. Gavin, Jr. acquired 5,000 shares of the company's stock in a transaction on Friday, February 6th. The stock was purchased at an average cost of $22.54 per share, for a total transaction of $112,700.00. Following the completion of the purchase, the director directly owned 273,666 shares in the company, valued at $6,168,431.64. This trade represents a 1.86% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders acquired 25,780 shares of company stock valued at $579,403. Insiders own 2.30% of the company's stock.

Institutional Trading of Varonis Systems

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Rockefeller Capital Management L.P. raised its holdings in Varonis Systems by 38.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 3,761 shares of the technology company's stock worth $123,000 after purchasing an additional 1,050 shares in the last quarter. Corient Private Wealth LLC boosted its holdings in Varonis Systems by 4.8% in the 4th quarter. Corient Private Wealth LLC now owns 12,717 shares of the technology company's stock valued at $417,000 after purchasing an additional 585 shares in the last quarter. Pacer Advisors Inc. boosted its holdings in Varonis Systems by 86.9% in the 4th quarter. Pacer Advisors Inc. now owns 11,637 shares of the technology company's stock valued at $382,000 after purchasing an additional 5,411 shares in the last quarter. Invesco Ltd. increased its position in Varonis Systems by 14.8% during the 4th quarter. Invesco Ltd. now owns 119,313 shares of the technology company's stock worth $3,913,000 after purchasing an additional 15,384 shares during the period. Finally, Empowered Funds LLC purchased a new position in shares of Varonis Systems during the 4th quarter worth approximately $37,000. Hedge funds and other institutional investors own 95.65% of the company's stock.

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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