Varonis Systems (NASDAQ:VRNS) Shares Gap Up on Insider Buying Activity

Varonis Systems, Inc. (NASDAQ:VRNS)’s share price gapped up before the market opened on Wednesday following insider buying activity. The stock had previously closed at $26.26, but opened at $27.80. Varonis Systems shares last traded at $25.6350, with a volume of 1,037,704 shares trading hands.

Specifically, Director Avrohom J. Kess bought 17,800 shares of the stock in a transaction on Friday, February 6th. The stock was bought at an average price of $22.29 per share, for a total transaction of $396,762.00. Following the completion of the acquisition, the director directly owned 49,403 shares in the company, valued at approximately $1,101,192.87. This represents a 56.32% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director John J. Gavin, Jr. purchased 5,000 shares of the business’s stock in a transaction dated Friday, February 6th. The stock was bought at an average price of $22.54 per share, for a total transaction of $112,700.00. Following the completion of the acquisition, the director directly owned 273,666 shares in the company, valued at approximately $6,168,431.64. This trade represents a 1.86% increase in their position. The SEC filing for this purchase provides additional information. In related news, EVP David Bass acquired 2,980 shares of the firm’s stock in a transaction that occurred on Monday, February 9th. The stock was purchased at an average cost of $23.47 per share, for a total transaction of $69,940.60. Following the purchase, the executive vice president directly owned 1,042,924 shares of the company’s stock, valued at $24,477,426.28. This trade represents a 0.29% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link.

Analysts Set New Price Targets

A number of equities analysts have commented on VRNS shares. Robert W. Baird downgraded shares of Varonis Systems from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 29th. B. Riley Financial reduced their price objective on shares of Varonis Systems from $58.00 to $45.00 and set a “buy” rating for the company in a research note on Wednesday, February 4th. Wedbush lowered their target price on shares of Varonis Systems from $53.00 to $35.00 and set an “outperform” rating for the company in a research note on Wednesday, February 4th. Susquehanna cut their price target on shares of Varonis Systems from $65.00 to $50.00 and set a “positive” rating on the stock in a report on Wednesday, October 29th. Finally, Cantor Fitzgerald decreased their price objective on Varonis Systems from $50.00 to $35.00 and set an “overweight” rating for the company in a report on Wednesday, February 4th. Seventeen analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Varonis Systems presently has a consensus rating of “Moderate Buy” and an average price target of $45.24.

Varonis Systems News Summary

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

• Positive Sentiment: Multiple insider purchases by senior insiders and directors signal confidence from management — EVP David Bass bought 2,980 shares and directors Avrohom J. Kess and John J. Gavin Jr. made sizable buys in early February. These filings often support near‑term sentiment. Insider Buys
• Positive Sentiment: Analysts reacted favorably to Varonis’s Q4 results and investor call (revenue and EPS beat), driving upgraded commentary and a notable intraday rally earlier in the week — this helped restore buying interest. Varonis Jumps on Upbeat Ratings
• Neutral Sentiment: Q4 results: revenue beat and EPS beat, with FY26 guidance that still implies a bumpy near‑term transition to recurring SaaS revenue. Analysts are asking detailed questions about churn and conversion — useful for modeling but not an immediate binary catalyst. Analyst Questions From Q4 Call
• Neutral Sentiment: Street positioning: most analysts still rate VRNS a buy or overweight despite trimmed price targets; institutional ownership remains high — this can amplify moves but also limits volatility if holders are long‑term. MarketBeat Profile
• Negative Sentiment: A cluster of plaintiff law firms (Hagens Berman, Levi & Korsinsky, Kessler Topaz, Rosen, Bronstein, Bragar and others) have issued notices and filed or solicited lead‑plaintiff applicants in a securities class action alleging Varonis misled investors about converting on‑prem customers to SaaS. The litigation and March 9 lead‑plaintiff deadline introduce potential settlement costs, distraction and share‑price pressure. Hagens Berman Investor Alert
• Negative Sentiment: Multiple additional law‑firm notices and class‑action solicitations (Levi & Korsinsky, Gross Law, Rosen, Kessler Topaz, Bernstein Liebhard, etc.) reinforce litigation risk and may keep downward pressure on sentiment until legal exposure is clarified. Levi & Korsinsky Notice

Varonis Systems Stock Performance

The company has a fifty day moving average price of $32.06 and a two-hundred day moving average price of $44.63. The firm has a market cap of $3.09 billion, a price-to-earnings ratio of -23.06 and a beta of 0.58. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.97 and a quick ratio of 1.97.

Varonis Systems (NASDAQ:VRNS) last issued its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.03 by $0.05. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 22.95%. The firm had revenue of $173.37 million for the quarter, compared to analysts’ expectations of $168.66 million. During the same period in the previous year, the business earned $0.18 earnings per share. Varonis Systems’s revenue for the quarter 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. As a group, equities research analysts expect that Varonis Systems, Inc. will post -0.83 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Stephens Inc. AR boosted its stake in shares of Varonis Systems by 1.9% during the 3rd quarter. Stephens Inc. AR now owns 9,105 shares of the technology company’s stock worth $523,000 after acquiring an additional 171 shares in the last quarter. Inspire Investing LLC lifted its holdings in shares of Varonis Systems by 2.9% during the third quarter. Inspire Investing LLC now owns 7,878 shares of the technology company’s stock valued at $453,000 after purchasing an additional 222 shares during the last quarter. Arizona State Retirement System boosted its position in shares of Varonis Systems by 0.9% in the 3rd quarter. Arizona State Retirement System now owns 33,114 shares of the technology company’s stock valued at $1,903,000 after purchasing an additional 287 shares during the period. Bessemer Group Inc. increased its stake in Varonis Systems by 179.1% in the 2nd quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock worth $25,000 after purchasing an additional 317 shares in the last quarter. Finally, Signaturefd LLC raised its holdings in Varonis Systems by 47.8% during 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. Institutional investors and hedge funds 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.