Varonis Systems, Inc. (NASDAQ:VRNS) Sees Significant Drop in Short Interest

Varonis Systems, Inc. (NASDAQ:VRNS) was the target of a large drop in short interest during the month of March. As of March 13th, there was short interest totaling 6,034,766 shares, a drop of 15.2% from the February 26th total of 7,114,475 shares. Based on an average daily volume of 1,907,185 shares, the short-interest ratio is currently 3.2 days. Currently, 5.3% of the company’s shares are sold short.

Insiders Place Their Bets

In other news, Director Avrohom J. Kess bought 17,800 shares of the stock in a transaction on Friday, February 6th. The stock was purchased at an average price of $22.29 per share, with a total value of $396,762.00. Following the completion of the purchase, the director owned 49,403 shares of the company’s stock, valued at approximately $1,101,192.87. This trade represents a 56.32% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director John J. Gavin, Jr. bought 5,000 shares of the business’s stock in a transaction on Friday, February 6th. The stock was purchased 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 owned 273,666 shares of the company’s stock, 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. Over the last quarter, insiders have purchased 25,780 shares of company stock worth $579,403. Insiders own 2.30% of the company’s stock.

Institutional Trading of Varonis Systems

A number of hedge funds have recently made changes to their positions in VRNS. Hodges Capital Management Inc. lifted its stake in shares of Varonis Systems by 146.3% during the 3rd quarter. Hodges Capital Management Inc. now owns 126,450 shares of the technology company’s stock worth $7,267,000 after buying an additional 75,120 shares during the last quarter. Readystate Asset Management LP bought a new position in shares of Varonis Systems during the third quarter worth approximately $13,731,000. Assenagon Asset Management S.A. bought a new stake in Varonis Systems in the 3rd quarter valued at $9,496,000. Allspring Global Investments Holdings LLC grew its holdings in Varonis Systems by 69.5% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,646,351 shares of the technology company’s stock valued at $95,192,000 after buying an additional 674,807 shares in the last quarter. Finally, AustralianSuper Pty Ltd grew its holdings in Varonis Systems by 29.6% in the 3rd quarter. AustralianSuper Pty Ltd now owns 602,379 shares of the technology company’s stock valued at $34,619,000 after buying an additional 137,713 shares in the last quarter. 95.65% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. William Blair restated a “market perform” rating on shares of Varonis Systems in a report on Monday, March 23rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Truist Financial lowered their price objective on shares of Varonis Systems from $42.00 to $34.00 and set a “buy” rating for the company in a research report on Wednesday, February 4th. Morgan Stanley restated an “equal weight” rating and issued a $41.00 price target (down from $44.00) on shares of Varonis Systems in a report on Monday, January 26th. Finally, Needham & Company LLC reduced their price objective on Varonis Systems from $55.00 to $30.00 and set a “buy” rating for the company in a research report on Wednesday, February 4th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $42.79.

Varonis Systems Stock Performance

VRNS opened at $21.48 on Wednesday. The business’s 50-day simple moving average is $25.39 and its 200 day simple moving average is $36.58. Varonis Systems has a 52-week low of $20.06 and a 52-week high of $63.90. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.97 and a current ratio of 1.97. The firm has a market capitalization of $2.52 billion, a PE ratio of -18.84 and a beta of 0.61.

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

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.