Varonis Systems (NASDAQ:VRNS) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup has raised its price target for Varonis Systems from $51.00 to $58.00, maintaining a "neutral" rating, which indicates a potential upside of 0.37% from the current stock price.
• Several other analysts have upgraded their ratings on Varonis Systems, with targets as high as $70.00 from Needham & Company, reflecting a consensus rating of "Moderate Buy" with a price target of approximately $59.25.
• Varonis Systems reported a quarterly revenue of $152.16 million, surpassing estimates and demonstrating a year-over-year increase of 16.7%, although the company still faces negative metrics in return on equity and net margin.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price objective hoisted by investment analysts at Citigroup from $51.00 to $58.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a "neutral" rating on the technology company's stock. Citigroup's price target suggests a potential upside of 0.37% from the stock's current price.

A number of other equities analysts have also recently weighed in on the company. Susquehanna raised their price objective on Varonis Systems from $55.00 to $65.00 and gave the company a "positive" rating in a report on Wednesday, July 30th. UBS Group increased their price target on Varonis Systems from $60.00 to $65.00 and gave the company a "buy" rating in a research note on Wednesday, July 30th. 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. Cantor Fitzgerald reiterated an "overweight" rating and set a $60.00 price target on shares of Varonis Systems in a research note on Tuesday, July 22nd. Finally, Needham & Company LLC lifted their price objective on Varonis Systems from $60.00 to $70.00 and gave the stock a "buy" rating in a report on Wednesday, July 30th. Four research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. Based on data from MarketBeat, Varonis Systems currently has a consensus rating of "Moderate Buy" and a consensus price target of $59.25.

Varonis Systems Stock Performance

Shares of VRNS stock traded down $0.62 during trading on Monday, reaching $57.79. The company had a trading volume of 216,990 shares, compared to its average volume of 1,556,605. The company has a debt-to-equity ratio of 1.32, a current ratio of 1.38 and a quick ratio of 1.38. The firm's 50 day simple moving average is $52.21 and its two-hundred day simple moving average is $46.30. The company has a market capitalization of $6.48 billion, a PE ratio of -62.88 and a beta of 0.71. Varonis Systems has a one year low of $36.53 and a one year high of $60.58.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last announced its earnings results on Tuesday, July 29th. The technology company reported $0.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.01 by $0.02. The business had revenue of $152.16 million for the quarter, compared to analyst estimates of $147.80 million. Varonis Systems had a negative return on equity of 23.06% and a negative net margin of 17.30%. Varonis Systems's revenue for the quarter was up 16.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.05 EPS. Sell-side analysts forecast that Varonis Systems will post -0.83 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Den Bosch Fred Van sold 3,000 shares of the company's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $55.08, for a total value of $165,240.00. Following the completion of the transaction, the director owned 128,666 shares of the company's stock, valued at $7,086,923.28. This represents a 2.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Guy Melamed sold 42,705 shares of the stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $57.72, for a total value of $2,464,932.60. Following the transaction, the chief financial officer directly owned 427,897 shares of the company's stock, valued at approximately $24,698,214.84. The trade was a 9.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 103,594 shares of company stock valued at $5,789,257. 2.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Varonis Systems

Institutional investors have recently modified their holdings of the stock. Castleark Management LLC acquired a new position in Varonis Systems in the second quarter valued at approximately $4,359,000. CANADA LIFE ASSURANCE Co grew its holdings in shares of Varonis Systems by 3.4% during the second quarter. CANADA LIFE ASSURANCE Co now owns 209,656 shares of the technology company's stock worth $10,633,000 after purchasing an additional 6,841 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in shares of Varonis Systems by 449.6% during the second quarter. Tower Research Capital LLC TRC now owns 16,081 shares of the technology company's stock worth $816,000 after purchasing an additional 13,155 shares during the last quarter. Sender Co & Partners Inc. acquired a new stake in shares of Varonis Systems during the second quarter worth about $1,011,000. Finally, Captrust Financial Advisors lifted its position in Varonis Systems by 40.1% in the second quarter. Captrust Financial Advisors now owns 20,709 shares of the technology company's stock valued at $1,051,000 after purchasing an additional 5,926 shares during the period. Hedge funds and other institutional investors own 95.65% of the company's stock.

About Varonis Systems

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.

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