Wells Fargo & Company Forecasts Strong Price Appreciation for Varonis Systems (NASDAQ:VRNS) Stock

Key Points

• Wells Fargo raised its price target on Varonis from $28 to $35 and kept an overweight rating, implying roughly a 28.8% upside from the recent price.
• Varonis beat Q1 estimates with $173.1M revenue (+26.9% YoY) and $0.06 EPS, raised Q2 and FY2026 guidance, disclosed accelerated SaaS ARR and launched the AI-driven Varonis Atlas, signaling stronger growth momentum.
• Profitability remains a concern—Varonis reports a negative net margin (~-20.7%) and negative ROE (~-22.9%), and analysts still expect a negative full-year EPS even as the consensus rating is a "Moderate Buy" with an average price target of $41.74.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price target raised by analysts at Wells Fargo & Company from $28.00 to $35.00 in a report released on Wednesday,Benzinga reports. The firm currently has an "overweight" rating on the technology company's stock. Wells Fargo & Company's price objective points to a potential upside of 28.80% from the stock's current price.

A number of other analysts have also issued reports on the stock. Truist Financial reduced their price target on shares of Varonis Systems from $42.00 to $34.00 and set a "buy" rating for the company in a research report on Wednesday, February 4th. DA Davidson upgraded shares of Varonis Systems from a "neutral" rating to a "buy" rating and upped their price objective for the company from $25.00 to $30.00 in a research note on Thursday, February 5th. Wedbush cut their target price on shares of Varonis Systems from $53.00 to $35.00 and set an "outperform" rating for the company in a research report on Wednesday, February 4th. Weiss Ratings reissued a "sell (d-)" rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Finally, JPMorgan Chase & Co. lowered their price target on shares of Varonis Systems from $50.00 to $38.00 and set an "overweight" rating on the stock in a report on Wednesday, February 4th. Fifteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $41.74.

Varonis Systems Stock Up 6.8%

NASDAQ:VRNS traded up $1.73 during trading hours on Wednesday, hitting $27.17. 2,346,830 shares of the company's stock traded hands, compared to its average volume of 2,949,554. The stock's fifty day moving average price is $23.32 and its two-hundred day moving average price is $31.54. The firm has a market cap of $3.12 billion, a P/E ratio of -23.78 and a beta of 0.68. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.97 and a current ratio of 1.97. Varonis Systems has a twelve month low of $19.70 and a twelve month high of $63.90.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The technology company reported $0.06 EPS for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $165.52 million. The firm's 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 expect that Varonis Systems will post -0.99 earnings per share for the current fiscal year.

Insider Activity at Varonis Systems

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Allworth Financial LP lifted its stake in shares of Varonis Systems by 201.3% in the 3rd quarter. Allworth Financial LP now owns 693 shares of the technology company's stock valued at $40,000 after purchasing an additional 463 shares during the last quarter. Neo Ivy Capital Management acquired a new position in Varonis Systems during the third quarter worth $42,000. First Horizon Corp bought a new position in Varonis Systems during the third quarter valued at about $45,000. Westside Investment Management Inc. raised its holdings in Varonis Systems by 100.0% during the third quarter. Westside Investment Management Inc. now owns 844 shares of the technology company's stock valued at $49,000 after buying an additional 422 shares in the last quarter. Finally, Signaturefd LLC lifted its position in shares of Varonis Systems by 47.8% in the fourth quarter. Signaturefd LLC now owns 995 shares of the technology company's stock worth $33,000 after buying an additional 322 shares during the last quarter. Institutional investors own 95.65% of the company's stock.

Key Stories Impacting Varonis Systems

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

• Positive Sentiment: Q1 beats — Varonis reported Q1 revenue of $173.1M (+26.9% YoY) and EPS of $0.06, beating consensus revenue and EPS estimates; management emphasized SaaS growth. Press Release
• Positive Sentiment: Raised guidance — Varonis updated Q2 EPS guidance to $0.00–$0.01 (vs. consensus -$0.04) and FY2026 EPS to $0.110–$0.120 (vs. consensus -$0.13); revenue outlook also topped Street expectations, signaling improved profitability trajectory. Earnings Release
• Positive Sentiment: SaaS ARR acceleration — Management signaled full-year total SaaS ARR of $814M–$845M (up materially vs. prior expectations) and disclosed total SaaS ARR of $683.2M; the company also launched Varonis Atlas after the AllTrue.ai acquisition, highlighting AI-driven product expansion. Seeking Alpha
• Positive Sentiment: Analyst upgrades and price-target raises — Multiple firms lifted targets and ratings after the print: Susquehanna to $36 (positive), Needham to $36 (buy) and Stephens to $33 (equal weight), reflecting renewed analyst confidence in growth and margin improvement. Analyst Notes
• Neutral Sentiment: Conference call and transcript available — The company provided detailed commentary in its Q1 call and slide deck for investors to assess ARR comps, cloud conversion cadence and margin path. Call Slides
• Negative Sentiment: Profitability still a concern — Despite beats, Varonis reports negative net margin (~-20.7%) and negative ROE (~-22.9%); analysts still project a negative full-year EPS on average, so sustained profitability is not yet proven. Zacks

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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