JPMorgan Chase & Co. Issues Pessimistic Forecast for Varonis Systems (NASDAQ:VRNS) Stock Price

Varonis Systems (NASDAQ:VRNS) had its price target cut by stock analysts at JPMorgan Chase & Co. from $50.00 to $38.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has an “overweight” rating on the technology company’s stock. JPMorgan Chase & Co.‘s price objective would indicate a potential upside of 71.09% from the company’s previous close.

Several other analysts have also recently commented on VRNS. TD Cowen lifted their target price on shares of Varonis Systems from $62.00 to $68.00 and gave the stock a “buy” rating in a research note on Friday, October 17th. Morgan Stanley restated an “equal weight” rating and set a $41.00 price objective (down previously from $44.00) on shares of Varonis Systems in a report on Monday, January 26th. Stephens started coverage on Varonis Systems in a research report on Tuesday, December 30th. They issued an “equal weight” rating and a $40.00 price objective for the company. Truist Financial reduced their target price on Varonis Systems from $42.00 to $34.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Sixteen investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Varonis Systems currently has an average rating of “Moderate Buy” and a consensus price target of $45.25.

Varonis Systems Trading Down 6.2%

Varonis Systems stock opened at $22.21 on Wednesday. The stock has a 50-day moving average price of $32.62 and a 200 day moving average price of $45.45. Varonis Systems has a 52 week low of $20.06 and a 52 week high of $63.90. The stock has a market cap of $2.62 billion, a PE ratio of -19.48 and a beta of 0.58. 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 (NASDAQ:VRNS) last released its earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.05. The company had revenue of $173.37 million for the quarter, compared to analyst estimates of $168.66 million. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 25.05%. The firm’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the firm 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. Equities research analysts predict that Varonis Systems will post -0.83 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Varonis Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of Varonis Systems by 6.5% in the 4th quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company’s stock worth $440,119,000 after purchasing an additional 822,925 shares during the period. First Trust Advisors LP increased its position in Varonis Systems by 7.9% during the 3rd quarter. First Trust Advisors LP now owns 3,148,243 shares of the technology company’s stock worth $180,930,000 after purchasing an additional 230,852 shares in the last quarter. Geode Capital Management LLC increased its position in Varonis Systems by 0.3% during the 2nd quarter. Geode Capital Management LLC now owns 2,670,343 shares of the technology company’s stock worth $135,537,000 after purchasing an additional 7,342 shares in the last quarter. Pictet Asset Management Holding SA raised its holdings in Varonis Systems by 99.1% in the fourth quarter. Pictet Asset Management Holding SA now owns 2,178,380 shares of the technology company’s stock valued at $71,480,000 after buying an additional 1,084,267 shares during the period. Finally, Stephens Investment Management Group LLC lifted its position in Varonis Systems by 6.7% during the fourth quarter. Stephens Investment Management Group LLC now owns 1,690,349 shares of the technology company’s stock valued at $55,443,000 after buying an additional 105,667 shares in the last quarter. 95.65% of the stock is currently owned by institutional investors and hedge funds.

Varonis Systems News Roundup

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.