Investors Buy Large Volume of Put Options on Varonis Systems (NASDAQ:VRNS)

Varonis Systems, Inc. (NASDAQ:VRNS) saw unusually large options trading on Wednesday. Stock investors bought 4,051 put options on the company. This represents an increase of approximately 206% compared to the average volume of 1,325 put options.

Key Stories Impacting Varonis Systems

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

• Positive Sentiment: Q4 results beat — Varonis reported Q4 revenue of $173.4M and GAAP EPS $0.08 vs. consensus ~$0.03; SaaS ARR momentum and ARR growth were highlighted in the release, supporting longer-term subscription expansion. Q4 Results
• Positive Sentiment: Forward guidance surprised to the upside — FY‑2026 EPS guide was raised to $0.06–$0.10 (street had expected negative EPS) and revenue guidance of $722M–$730M implies continued growth tailwinds from SaaS and cloud adoption. (See company release above and earnings coverage.)
• Positive Sentiment: Strategic M&A — Varonis agreed to acquire AllTrue.ai (AI TRiSM) in a deal reported at ~$150M, bolstering its AI/security product set and positioning it to monetize AI-related security demand. Acquisition Coverage
• Neutral Sentiment: Analyst reactions mixed — multiple firms cut price targets (examples: B. Riley, JPMorgan, Cantor, Citi, Wedbush, Needham) but several kept buy/overweight stances; the revisions reflect shorter-term margin and transition risk rather than uniform downgrades. Analyst Notes
• Negative Sentiment: Heightened legal risk — multiple plaintiff firms (Kessler Topaz, Rosen, Levi & Korsinsky, Hagens Berman, Pomerantz, others) have filed or issued alerts for a securities‑class action alleging misleading statements about the SaaS transition; the lead-plaintiff deadline is March 9, 2026, increasing headline risk and potential settlement overhang. Kessler Topaz Alert
• Negative Sentiment: Bearish derivatives flow and selling pressure — unusually large put buying (4,051 puts, +206% vs. average) and heavy equity volume indicate traders are hedging or betting on further downside after the print.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. Wedbush reduced their price objective on shares of Varonis Systems from $53.00 to $35.00 and set an “outperform” rating on the stock in a research note on Wednesday. JPMorgan Chase & Co. cut their price target on shares of Varonis Systems from $50.00 to $38.00 and set an “overweight” rating for the company in a report on Wednesday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Varonis Systems in a research report on Wednesday, January 21st. Robert W. Baird cut Varonis Systems from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 29th. Finally, Citigroup reduced their price objective on Varonis Systems from $37.00 to $28.00 and set a “neutral” rating on the stock in a research note on Wednesday. Fifteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $45.00.

Varonis Systems Stock Down 10.8%

NASDAQ:VRNS opened at $23.67 on Thursday. Varonis Systems has a one year low of $20.06 and a one year high of $63.90. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.81 and a quick ratio of 1.81. The company has a market cap of $2.79 billion, a PE ratio of -20.76 and a beta of 0.58. The firm’s 50 day simple moving average is $32.82 and its 200 day simple moving average is $45.61.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.05. The firm had revenue of $173.37 million during the quarter, compared to analysts’ expectations of $168.66 million. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 25.05%. The company’s revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.18 EPS. 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, research analysts anticipate that Varonis Systems will post -0.83 earnings per share for the current year.

Institutional Investors Weigh In On Varonis Systems

Institutional investors have recently made changes to their positions in the stock. Assenagon Asset Management S.A. bought a new position in Varonis Systems in the third quarter worth approximately $9,496,000. Yorktown Management & Research Co Inc bought a new stake in shares of Varonis Systems during the second quarter valued at approximately $302,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Varonis Systems during the second quarter worth approximately $418,000. Connor Clark & Lunn Investment Management Ltd. raised its position in shares of Varonis Systems by 3.6% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 293,083 shares of the technology company’s stock worth $14,874,000 after purchasing an additional 10,100 shares during the period. Finally, Capital Fund Management S.A. lifted its holdings in shares of Varonis Systems by 31.0% in the 2nd quarter. Capital Fund Management S.A. now owns 306,695 shares of the technology company’s stock worth $15,565,000 after purchasing an additional 72,657 shares in the last quarter. Institutional investors own 95.65% of the company’s stock.

About Varonis Systems

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.