Weiss Ratings Reiterates Sell (D-) Rating for Varonis Systems (NASDAQ:VRNS)

Key Points

• Weiss Ratings has reiterated a Sell (D-) rating for Varonis Systems (NASDAQ: VRNS), indicating continued skepticism about the company's stock performance.
• Despite the negative assessment from Weiss Ratings, several other analysts have upgraded their ratings and target prices, with Morgan Stanley raising the target price from $59 to $66.
• Varonis Systems' stock recently performed well, trading at $63.31 after a midday increase, with a market capitalization of $7.09 billion.

Varonis Systems (NASDAQ:VRNS - Get Free Report)'s stock had its "sell (d-)" rating reissued by equities research analysts at Weiss Ratings in a report issued on Wednesday,Weiss Ratings reports.

Several other equities research analysts have also recently weighed in on the company. Morgan Stanley increased their target price on Varonis Systems from $59.00 to $66.00 and gave the company an "overweight" rating in a report on Tuesday, September 2nd. DA Davidson increased their target price on Varonis Systems from $47.00 to $50.00 and gave the company a "neutral" rating in a report on Wednesday, July 30th. Wells Fargo & Company upgraded Varonis Systems from an "equal weight" rating to an "overweight" rating and increased their target price for the company from $51.00 to $70.00 in a report on Monday, August 11th. Jefferies Financial Group upgraded Varonis Systems from a "hold" rating to a "buy" rating and increased their target price for the company from $50.00 to $65.00 in a report on Thursday, July 24th. Finally, Wedbush restated an "outperform" rating and set a $65.00 target price on shares of Varonis Systems in a report on Wednesday, September 3rd. Fourteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Varonis Systems has a consensus rating of "Moderate Buy" and an average price target of $63.41.

Varonis Systems Stock Performance

Shares of NASDAQ:VRNS traded up $3.33 during midday trading on Wednesday, reaching $63.31. 1,553,737 shares of the company traded hands, compared to its average volume of 1,533,921. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 1.32. Varonis Systems has a 12 month low of $36.53 and a 12 month high of $63.42. The firm has a market capitalization of $7.09 billion, a price-to-earnings ratio of -68.82 and a beta of 0.64. The firm's fifty day moving average price is $57.59 and its two-hundred day moving average price is $50.39.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last released its quarterly earnings data 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 company 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%.The firm's revenue for the quarter was up 16.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.05 EPS. Varonis Systems has set its FY 2025 guidance at 0.160-0.180 EPS. Q3 2025 guidance at 0.070-0.080 EPS. On average, equities analysts expect that Varonis Systems will post -0.83 earnings per share for the current year.

Insider Buying and Selling at Varonis Systems

In other news, CFO Guy Melamed sold 51,889 shares of the business's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $55.10, for a total value of $2,859,083.90. Following the transaction, the chief financial officer directly owned 470,602 shares in the company, valued at $25,930,170.20. The trade was a 9.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Den Bosch Fred Van sold 3,000 shares of the business's stock in a transaction dated Friday, August 1st. The shares were 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 in the company, valued at $7,086,923.28. The trade was a 2.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 113,386 shares of company stock worth $6,429,405 over the last quarter. 2.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Varonis Systems

Large investors have recently made changes to their positions in the company. Bessemer Group Inc. increased its holdings in shares of Varonis Systems by 179.1% in the second quarter. Bessemer Group Inc. now owns 494 shares of the technology company's stock worth $25,000 after purchasing an additional 317 shares during the last quarter. Quarry LP increased its stake in Varonis Systems by 31.8% during the first quarter. Quarry LP now owns 1,082 shares of the technology company's stock worth $44,000 after acquiring an additional 261 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in Varonis Systems by 344.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,213 shares of the technology company's stock worth $62,000 after acquiring an additional 940 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S bought a new stake in Varonis Systems during the first quarter worth approximately $69,000. Finally, NBC Securities Inc. increased its stake in Varonis Systems by 100,200.0% during the first quarter. NBC Securities Inc. now owns 2,006 shares of the technology company's stock worth $81,000 after acquiring an additional 2,004 shares during the last quarter. 95.65% of the stock is owned by institutional investors.

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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