Truist Financial Has Lowered Expectations for Varonis Systems (NASDAQ:VRNS) Stock Price

Varonis Systems (NASDAQ:VRNS) had its target price lowered by equities research analysts at Truist Financial from $42.00 to $34.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a “buy” rating on the technology company’s stock. Truist Financial’s price objective would suggest a potential upside of 53.08% from the company’s previous close.

Several other analysts have also commented on the stock. DA Davidson lowered 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. Citigroup lowered their price target on shares of Varonis Systems from $58.00 to $40.00 and set a “neutral” rating on the stock in a report on Monday, November 3rd. JPMorgan Chase & Co. dropped their price objective on Varonis Systems from $62.00 to $50.00 and set an “overweight” rating on the stock in a research note on Monday, January 26th. Cantor Fitzgerald reissued an “overweight” rating on shares of Varonis Systems in a report on Wednesday, January 7th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Sixteen equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $45.25.

Varonis Systems Stock Down 6.2%

VRNS stock opened at $22.21 on Wednesday. The stock’s fifty day simple moving average is $32.62 and its two-hundred day simple moving average is $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 1-year low of $20.06 and a 1-year high of $63.90. The stock 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 announced its 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 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 business’s revenue was up 9.4% compared to the same quarter last year. During the same period last year, the firm 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. Analysts expect that Varonis Systems will post -0.83 EPS for the current year.

Institutional Trading of Varonis Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in VRNS. Stephens Investment Management Group LLC boosted its stake in Varonis Systems by 6.7% in the 4th quarter. Stephens Investment Management Group LLC now owns 1,690,349 shares of the technology company’s stock worth $55,443,000 after purchasing an additional 105,667 shares during the period. Stephens Inc. AR increased its position in shares of Varonis Systems by 19.5% during the fourth quarter. Stephens Inc. AR now owns 10,883 shares of the technology company’s stock valued at $357,000 after buying an additional 1,778 shares during the period. Pacer Advisors Inc. lifted its holdings in shares of Varonis Systems by 86.9% in the fourth quarter. Pacer Advisors Inc. now owns 11,637 shares of the technology company’s stock worth $382,000 after buying an additional 5,411 shares in the last quarter. Jennison Associates LLC boosted its position in shares of Varonis Systems by 92.6% in the fourth quarter. Jennison Associates LLC now owns 1,036,934 shares of the technology company’s stock valued at $34,011,000 after acquiring an additional 498,413 shares during the period. Finally, State of New Jersey Common Pension Fund D boosted its position in shares of Varonis Systems by 70.0% in the fourth quarter. State of New Jersey Common Pension Fund D now owns 65,478 shares of the technology company’s stock valued at $2,148,000 after acquiring an additional 26,969 shares during the period. 95.65% of the stock is currently owned by institutional investors.

Trending Headlines about 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.)

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.