Varonis Systems (NASDAQ:VRNS) Sets New 12-Month Low Following Analyst Downgrade

Varonis Systems, Inc. (NASDAQ:VRNS) shares reached a new 52-week low during trading on Wednesday after DA Davidson lowered their price target on the stock from $55.00 to $40.00. DA Davidson currently has a neutral rating on the stock. Varonis Systems traded as low as $33.91 and last traded at $35.2750, with a volume of 6485506 shares trading hands. The stock had previously closed at $63.00.

Other equities research analysts have also recently issued reports about the stock. B. Riley began coverage on shares of Varonis Systems in a research report on Tuesday, August 26th. They set a “buy” rating and a $80.00 price target on the stock. Barclays boosted their price target on shares of Varonis Systems from $62.00 to $70.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 14th. Royal Bank Of Canada cut their price target on shares of Varonis Systems from $72.00 to $60.00 and set an “outperform” rating on the stock in a research report on Wednesday. Wedbush reissued an “outperform” rating and set a $65.00 price target on shares of Varonis Systems in a research report on Wednesday, September 3rd. Finally, TD Cowen boosted their price target on shares of Varonis Systems from $62.00 to $68.00 and gave the stock a “buy” rating in a research report on Friday, October 17th. Sixteen analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Varonis Systems currently has a consensus rating of “Moderate Buy” and an average price target of $60.74.

Insider Activity

In related news, CFO Guy Melamed sold 51,889 shares of the company’s stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $55.10, for a total value of $2,859,083.90. Following the transaction, the chief financial officer owned 470,602 shares in the company, valued at approximately $25,930,170.20. This represents a 9.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Den Bosch Fred Van sold 3,000 shares of the company’s stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $55.08, for a total transaction of $165,240.00. Following the completion of the transaction, the director owned 128,666 shares in the company, valued at approximately $7,086,923.28. This trade represents a 2.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 113,386 shares of company stock worth $6,429,405 over the last 90 days. 2.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Wealth Enhancement Advisory Services LLC grew its stake in Varonis Systems by 59.8% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 16,914 shares of the technology company’s stock valued at $1,014,000 after buying an additional 6,332 shares during the last quarter. Eagle Global Advisors LLC grew its stake in Varonis Systems by 45.5% in the 3rd quarter. Eagle Global Advisors LLC now owns 67,200 shares of the technology company’s stock valued at $3,862,000 after buying an additional 21,000 shares during the last quarter. Stephens Inc. AR grew its stake in Varonis Systems by 1.9% in the 3rd quarter. Stephens Inc. AR now owns 9,105 shares of the technology company’s stock valued at $523,000 after buying an additional 171 shares during the last quarter. First Horizon Corp acquired a new position in Varonis Systems in the 3rd quarter valued at about $45,000. Finally, Peregrine Capital Management LLC grew its stake in Varonis Systems by 6.6% in the 3rd quarter. Peregrine Capital Management LLC now owns 261,046 shares of the technology company’s stock valued at $15,002,000 after buying an additional 16,146 shares during the last quarter. Institutional investors and hedge funds own 95.65% of the company’s stock.

Varonis Systems Stock Performance

The firm has a market cap of $3.62 billion, a price-to-earnings ratio of -31.71 and a beta of 0.64. The stock’s 50 day moving average is $58.63 and its 200 day moving average is $52.54. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 1.32.

Varonis Systems (NASDAQ:VRNS) last announced its earnings results on Tuesday, October 28th. The technology company reported $0.06 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.06. Varonis Systems had a negative net margin of 18.82% and a negative return on equity of 24.97%. The firm had revenue of $161.58 million for the quarter, compared to analyst estimates of $166.47 million. During the same quarter in the prior year, the business posted $0.10 EPS. The business’s revenue was up 9.1% compared to the same quarter last year. Varonis Systems has set its Q4 2025 guidance at 0.020-0.04 EPS. Analysts anticipate that Varonis Systems, Inc. will post -0.83 earnings per share for the current year.

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.