Citigroup Issues Pessimistic Forecast for Varonis Systems (NASDAQ:VRNS) Stock Price

Varonis Systems (NASDAQ:VRNS) had its target price dropped by equities research analysts at Citigroup from $37.00 to $28.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has a “neutral” rating on the technology company’s stock. Citigroup’s price target points to a potential upside of 26.07% from the stock’s current price.

A number of other research analysts have also recently weighed in on VRNS. Royal Bank Of Canada cut their price objective on shares of Varonis Systems from $60.00 to $41.00 and set an “outperform” rating on the stock in a research report on Monday, January 5th. Zacks Research raised shares of Varonis Systems from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 11th. DA Davidson reduced their price objective on shares of Varonis Systems from $55.00 to $40.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 29th. Weiss Ratings reissued a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Finally, Barclays dropped their target price on Varonis Systems from $50.00 to $45.00 and set an “overweight” rating for the company in a research report on Monday, January 5th. Sixteen equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $45.25.

Varonis Systems Trading Down 6.2%

VRNS opened at $22.21 on Wednesday. The stock has a 50-day moving average of $32.62 and a 200 day moving average of $45.45. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.75. Varonis Systems has a 12 month low of $20.06 and a 12 month high of $63.90. The firm has a market cap of $2.62 billion, a P/E ratio of -19.48 and a beta of 0.58.

Varonis Systems (NASDAQ:VRNS) last posted its quarterly earnings data 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 business had revenue of $173.37 million during the quarter, compared to analyst estimates of $168.66 million. Varonis Systems had a negative return on equity of 25.05% and a negative net margin of 20.74%.The company’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same period last year, the company earned $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. As a group, research analysts forecast that Varonis Systems will post -0.83 EPS for the current year.

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors have recently modified their holdings of VRNS. Stephens Inc. AR raised its stake in shares of Varonis Systems by 1.9% during the third quarter. Stephens Inc. AR now owns 9,105 shares of the technology company’s stock valued at $523,000 after acquiring an additional 171 shares in the last quarter. Inspire Investing LLC grew its stake in Varonis Systems by 2.9% in the third quarter. Inspire Investing LLC now owns 7,878 shares of the technology company’s stock worth $453,000 after purchasing an additional 222 shares in the last quarter. Arizona State Retirement System increased its holdings in Varonis Systems by 0.9% during the 3rd quarter. Arizona State Retirement System now owns 33,114 shares of the technology company’s stock worth $1,903,000 after purchasing an additional 287 shares during the period. Bessemer Group Inc. raised its position in Varonis Systems by 179.1% during the 2nd quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock valued at $25,000 after purchasing an additional 317 shares in the last quarter. Finally, Signaturefd LLC lifted its holdings in shares of Varonis Systems by 47.8% in the 4th quarter. Signaturefd LLC now owns 995 shares of the technology company’s stock worth $33,000 after buying an additional 322 shares during the period. 95.65% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Varonis Systems

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

• Positive Sentiment: Q4 results beat consensus and showed accelerating SaaS/ARR momentum, supporting the company’s cloud transition story. Analysts and coverage notes point to improving subscription growth as a longer-term positive. Read More.
• Positive Sentiment: Varonis completed a strategic AI/technology acquisition (AllTrue.ai reportedly valued at ~$150M), which could accelerate product differentiation and AI-driven upsell opportunities for its SaaS platform. Read More.
• Positive Sentiment: One shop (DA Davidson) upgraded the stock to “buy” with a $30 target, signaling some buy-side faith that recent weakness may offer a recovery entry. Read More.
• Neutral Sentiment: Multiple major analysts trimmed price targets after the earnings report (JPMorgan, Cantor Fitzgerald, Citigroup, Wedbush, B. Riley, Truist, Needham, etc.). Many kept constructive ratings (buy/overweight) but lowered targets, creating mixed near-term sentiment despite continued longer-term upside in some models. Read More.
• Neutral Sentiment: Earnings guidance and margin commentary appear to have been read as conservative by some investors: top-line SaaS momentum is positive, but margin pressure during the transition keeps near-term profitability unclear. (See earnings call transcript and coverage for details.) Read More.
• Negative Sentiment: A broad wave of securities-law firm notices and at least one filed class action allege the company misled investors about its SaaS transition; multiple firms are soliciting lead plaintiffs with a March 9, 2026 deadline — this increases litigation risk and can pressure the stock and management focus. Read More. | Read More.
• Negative Sentiment: Market positioning turned defensive after the report: unusually large put-option volume and heavy share trading indicate short-term bearish bets and hedging activity, amplifying downside pressure. (Put activity spike reported on Feb. 4.)

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.