Varonis Systems (NASDAQ:VRNS) Shares Gap Down After Analyst Downgrade

Varonis Systems, Inc. (NASDAQ:VRNS)’s share price gapped down before the market opened on Wednesday after DA Davidson lowered their price target on the stock from $40.00 to $25.00. The stock had previously closed at $26.53, but opened at $23.17. DA Davidson currently has a neutral rating on the stock. Varonis Systems shares last traded at $21.5470, with a volume of 1,820,645 shares.

VRNS has been the topic of a number of other research reports. Barclays lowered their price objective on Varonis Systems from $50.00 to $45.00 and set an “overweight” rating on the stock in a research note on Monday, January 5th. Citigroup cut their target price on Varonis Systems from $37.00 to $28.00 and set a “neutral” rating for the company in a research report on Wednesday. Morgan Stanley restated an “equal weight” rating and issued a $41.00 price target (down previously from $44.00) on shares of Varonis Systems in a research report on Monday, January 26th. Robert W. Baird downgraded Varonis Systems from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 29th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Varonis Systems in a research report on Wednesday, January 21st. Sixteen analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $45.25.

More Varonis Systems News

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.)

Institutional Investors Weigh In On Varonis Systems

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Dynamic Technology Lab Private Ltd bought a new position in Varonis Systems in the 1st quarter valued at approximately $233,000. Caxton Associates LLP bought a new stake in shares of Varonis Systems during the first quarter worth $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% during 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 worth $25,049,000 after buying an additional 64,636 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. increased its holdings in shares of Varonis Systems by 48.4% during the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 12,562 shares of the technology company’s stock worth $638,000 after buying an additional 4,097 shares in the last quarter. Finally, KLP Kapitalforvaltning AS lifted its stake in shares of Varonis Systems by 6.5% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 23,000 shares of the technology company’s stock valued at $1,167,000 after acquiring an additional 1,400 shares during the last quarter. 95.65% of the stock is owned by institutional investors.

Varonis Systems Stock Performance

The company has a market cap of $2.62 billion, a price-to-earnings ratio of -19.48 and a beta of 0.58. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.81 and a current ratio of 1.81. The company has a fifty day moving average of $32.62 and a two-hundred day moving average of $45.45.

Varonis Systems (NASDAQ:VRNS) last issued its earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.03 by $0.05. Varonis Systems had a negative return on equity of 25.05% 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 firm earned $0.18 EPS. The business’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. Equities research analysts anticipate that Varonis Systems, Inc. will post -0.83 EPS for the current 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.