Needham & Company LLC Issues Pessimistic Forecast for Varonis Systems (NASDAQ:VRNS) Stock Price

Varonis Systems (NASDAQ:VRNS) had its target price cut by equities researchers at Needham & Company LLC from $55.00 to $30.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has a “buy” rating on the technology company’s stock. Needham & Company LLC’s price objective indicates a potential upside of 35.07% from the company’s previous close.

Several other research firms have also commented on VRNS. Cantor Fitzgerald reissued an “overweight” rating on shares of Varonis Systems in a research note on Wednesday, January 7th. Citigroup lowered their target price on shares of Varonis Systems from $58.00 to $40.00 and set a “neutral” rating for the company in a report on Monday, November 3rd. Barclays cut their price target on Varonis Systems from $50.00 to $45.00 and set an “overweight” rating on the stock in a research note on Monday, January 5th. Susquehanna lowered their price objective on Varonis Systems from $65.00 to $50.00 and set a “positive” rating for the company in a research note on Wednesday, October 29th. Finally, JPMorgan Chase & Co. dropped their target price on Varonis Systems from $62.00 to $50.00 and set an “overweight” rating on the stock in a report on Monday, January 26th. Sixteen equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $45.25.

Varonis Systems Trading Down 6.2%

VRNS opened at $22.21 on Wednesday. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.75. 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 business has a 50 day moving average of $32.62 and a 200-day moving average of $45.45.

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, topping analysts’ consensus estimates of $0.03 by $0.05. Varonis Systems had a negative return on equity of 25.05% and a negative net margin of 20.74%.The business had revenue of $173.37 million during the quarter, compared to the consensus estimate of $168.66 million. During the same quarter in the prior year, the company earned $0.18 earnings per share. The firm’s quarterly revenue was up 9.4% compared to the same quarter last year. 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 Trading of Varonis Systems

A number of institutional investors and hedge funds have recently modified their holdings of the business. Bessemer Group Inc. raised its stake in shares of Varonis Systems by 179.1% in the second quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock worth $25,000 after purchasing an additional 317 shares during the last quarter. Signaturefd LLC increased its holdings in 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 in the last quarter. Allworth Financial LP increased its holdings in Varonis Systems by 201.3% in the 3rd quarter. Allworth Financial LP now owns 693 shares of the technology company’s stock worth $40,000 after buying an additional 463 shares in the last quarter. Neo Ivy Capital Management purchased a new position in Varonis Systems in the 3rd quarter worth about $42,000. Finally, First Horizon Corp bought a new position in Varonis Systems during the 3rd quarter valued at about $45,000. Institutional investors own 95.65% of the company’s stock.

Key Varonis Systems News

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.)

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.