Varonis Systems (NASDAQ:VRNS) Upgraded at Wells Fargo & Company

Wells Fargo & Company upgraded shares of Varonis Systems (NASDAQ:VRNS) to a strong-buy rating in a research note published on Monday,Zacks.com reports.

VRNS has been the subject of several other research reports. DA Davidson upgraded shares of Varonis Systems from a “neutral” rating to a “buy” rating and raised their target price for the stock from $25.00 to $30.00 in a research note on Thursday, February 5th. Royal Bank Of Canada cut their price target on shares of Varonis Systems from $60.00 to $41.00 and set an “outperform” rating for the company in a report on Monday, January 5th. Citigroup lowered their price objective on Varonis Systems from $37.00 to $28.00 and set a “neutral” rating on the stock in a 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 research note on Monday, January 26th. Finally, Needham & Company LLC decreased their target price on shares of Varonis Systems from $55.00 to $30.00 and set a “buy” rating on the stock in a research report on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Varonis Systems has a consensus rating of “Moderate Buy” and an average target price of $43.15.

Varonis Systems Trading Down 0.3%

Shares of VRNS stock opened at $23.49 on Monday. The business’s 50 day moving average is $29.38 and its two-hundred day moving average is $41.29. Varonis Systems has a twelve month low of $20.06 and a twelve month high of $63.90. The company has a market capitalization of $2.76 billion, a P/E ratio of -20.61 and a beta of 0.61. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.76.

Varonis Systems (NASDAQ:VRNS) last released 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 return on equity of 22.95% and a negative net margin of 20.74%.The business had revenue of $173.37 million during the quarter, compared to analysts’ expectations of $168.66 million. During the same quarter in the prior year, the business earned $0.18 earnings per share. The company’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 analysts forecast that Varonis Systems will post -0.83 EPS for the current year.

Insider Buying and Selling at Varonis Systems

In other Varonis Systems news, Director John J. Gavin, Jr. bought 5,000 shares of the business’s stock in a transaction on 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 transaction, the director owned 273,666 shares in the company, valued at approximately $6,168,431.64. The trade was a 1.86% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP David Bass purchased 2,980 shares of the stock in a transaction dated Monday, February 9th. The stock was acquired at an average price of $23.47 per share, for a total transaction of $69,940.60. Following the completion of the transaction, the executive vice president directly owned 1,042,924 shares of the company’s stock, valued at approximately $24,477,426.28. The trade was a 0.29% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders acquired 25,780 shares of company stock worth $579,403. 2.30% of the stock is owned by corporate insiders.

Institutional Trading of Varonis Systems

A number of hedge funds have recently added to or reduced their stakes in the business. Bessemer Group Inc. raised its holdings in shares of Varonis Systems by 179.1% during the 2nd quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock valued at $25,000 after buying an additional 317 shares during the period. Signaturefd LLC boosted its stake in shares of Varonis Systems by 47.8% during the 4th quarter. Signaturefd LLC now owns 995 shares of the technology company’s stock valued at $33,000 after buying an additional 322 shares during the last quarter. Empowered Funds LLC acquired a new stake in shares of Varonis Systems during the fourth quarter worth approximately $37,000. Allworth Financial LP grew its position in shares of Varonis Systems by 201.3% during the third 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. Finally, Neo Ivy Capital Management acquired a new stake in Varonis Systems in the third quarter valued at $42,000. 95.65% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Varonis Systems

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

• Positive Sentiment: Wells Fargo initiated/covered Varonis with an overweight / “strong‑buy” view and a $28 price target (~19% above the current level), which could attract buyers and provide short‑term analyst support. Wells Fargo coverage / $28 PT
• Neutral Sentiment: Recent quarterly results were mixed: Varonis beat EPS and revenue (EPS $0.08 vs. $0.03 est.; revenue $173.4M vs. $168.7M), and revenue rose ~9.4% YoY — but the company remains unprofitable and issued FY‑2026 / Q1 guidance that is cautious (FY EPS 0.060–0.100; Q1 guidance negative), leaving fundamentals mixed for investors.
• Negative Sentiment: Hagens Berman is investigating Varonis over alleged undisclosed renewal softness in the Federal and legacy on‑premises businesses and a purportedly failed/difficult SaaS transition — allegations that, if pursued, raise execution and disclosure risk. Hagens Berman investigation
• Negative Sentiment: Multiple plaintiff firms (RGRD, Faruqi & Faruqi, Berger Montague, Levi & Korsinsky, Rosen, Pomerantz, Bragar Eagel & Squire, and others) have filed or solicited clients in a securities class action covering Feb 4–Oct 28, 2025 and are reminding investors of the March 9 lead‑plaintiff deadline — the volume of filings increases headline risk and potential legal costs. RGRD Law notice

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.