B. Riley Issues Pessimistic Forecast for Varonis Systems (NASDAQ:VRNS) Stock Price

Varonis Systems (NASDAQ:VRNS) had its target price dropped by investment analysts at B. Riley from $58.00 to $45.00 in a research note issued on Wednesday,Benzinga reports. The firm presently has a “buy” rating on the technology company’s stock. B. Riley’s target price suggests a potential upside of 102.61% from the company’s previous close.

Several other equities analysts also recently commented on VRNS. Barclays cut their target price on Varonis Systems from $50.00 to $45.00 and set an “overweight” rating for the company in a research report on Monday, January 5th. DA Davidson dropped their price objective on Varonis Systems from $55.00 to $40.00 and set a “neutral” rating for the company in a research note on Wednesday, October 29th. Stephens started coverage on Varonis Systems in a report on Tuesday, December 30th. They set an “equal weight” rating and a $40.00 price objective for the company. Weiss Ratings restated a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Finally, Morgan Stanley reiterated an “equal weight” rating and set a $41.00 target price (down previously from $44.00) on shares of Varonis Systems in a research report on Monday, January 26th. Sixteen investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $45.25.

Varonis Systems Trading Down 6.2%

Shares of VRNS stock opened at $22.21 on Wednesday. The firm has a fifty day moving average of $32.62 and a 200-day moving average of $45.45. The stock has a market cap of $2.62 billion, a price-to-earnings ratio of -19.48 and a beta of 0.58. 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 0.75, a quick ratio of 1.81 and a current ratio of 1.81.

Varonis Systems (NASDAQ:VRNS) last posted its 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 net margin of 20.74% and a negative return on equity of 25.05%. The business had revenue of $173.37 million for the quarter, compared to analysts’ expectations of $168.66 million. During the same quarter in the previous year, the firm posted $0.18 earnings per share. The firm’s revenue for the quarter was up 9.4% on a year-over-year basis. 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. On average, equities research analysts forecast that Varonis Systems will post -0.83 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Varonis Systems

A number of hedge funds have recently added to or reduced their stakes in the stock. Dynamic Technology Lab Private Ltd bought a new position in shares of Varonis Systems in the first quarter worth about $233,000. Caxton Associates LLP acquired a new stake in shares of Varonis Systems in the first quarter valued at approximately $200,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Varonis Systems by 11.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 619,257 shares of the technology company’s stock valued at $25,049,000 after purchasing an additional 64,636 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. raised its position in Varonis Systems by 48.4% in the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 12,562 shares of the technology company’s stock worth $638,000 after purchasing an additional 4,097 shares during the last quarter. Finally, KLP Kapitalforvaltning AS lifted its holdings in Varonis Systems by 6.5% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 23,000 shares of the technology company’s stock worth $1,167,000 after buying an additional 1,400 shares in the last quarter. Institutional investors own 95.65% of the company’s stock.

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.)

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.