Varonis Systems (NASDAQ:VRNS) Stock Rating Upgraded by DA Davidson

Varonis Systems (NASDAQ:VRNS) was upgraded by equities research analysts at DA Davidson from a “neutral” rating to a “buy” rating in a note issued to investors on Thursday, MarketBeat.com reports. The firm currently has a $30.00 price objective on the technology company’s stock, up from their previous price objective of $25.00. DA Davidson’s target price would indicate a potential upside of 32.45% from the stock’s previous close.

Other equities research analysts have also recently issued reports about the company. Needham & Company LLC lowered their price objective on Varonis Systems from $55.00 to $30.00 and set a “buy” rating on the stock in a report on Wednesday. JPMorgan Chase & Co. decreased their target price on Varonis Systems from $50.00 to $38.00 and set an “overweight” rating on the stock in a research report on Wednesday. Cantor Fitzgerald dropped their price target on Varonis Systems from $50.00 to $35.00 and set an “overweight” rating for the company in a research report on Wednesday. Piper Sandler upgraded Varonis Systems from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $45.00 to $47.00 in a report on Monday, January 5th. Finally, Stephens started coverage on shares of Varonis Systems in a report on Tuesday, December 30th. They set an “equal weight” rating and a $40.00 target price for the company. Seventeen equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $45.24.

Varonis Systems Price Performance

Varonis Systems stock opened at $22.65 on Thursday. The stock has a market capitalization of $2.66 billion, a P/E ratio of -19.87 and a beta of 0.58. The company’s fifty day moving average price is $32.41 and its 200 day moving average price is $45.25. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.81 and a current ratio of 1.97. Varonis Systems has a 1 year low of $20.06 and a 1 year high of $63.90.

Varonis Systems (NASDAQ:VRNS) last posted its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, beating 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 business had revenue of $173.37 million for the quarter, compared to the consensus estimate of $168.66 million. During the same period last year, the firm posted $0.18 earnings per share. The company’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, equities research analysts anticipate that Varonis Systems will post -0.83 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors have recently bought and sold shares of the company. Bessemer Group Inc. boosted its holdings in Varonis Systems by 179.1% in the 2nd quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock valued at $25,000 after purchasing an additional 317 shares during the last quarter. Allworth Financial LP raised its position in shares of Varonis Systems by 201.3% during the 3rd quarter. Allworth Financial LP now owns 693 shares of the technology company’s stock valued at $40,000 after buying an additional 463 shares during the period. Neo Ivy Capital Management acquired a new position in Varonis Systems in the third quarter valued at approximately $42,000. First Horizon Corp acquired a new position in Varonis Systems in the third quarter valued at approximately $45,000. Finally, Westside Investment Management Inc. grew its position in Varonis Systems by 100.0% in the third quarter. Westside Investment Management Inc. now owns 844 shares of the technology company’s stock worth $49,000 after acquiring an additional 422 shares during the period. 95.65% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Varonis Systems

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

• Positive Sentiment: DA Davidson upgraded Varonis from “neutral” to “buy” and raised its price target to $30, giving the stock an analyst-backed boost. DA Davidson upgrade
• Positive Sentiment: An industry-themed note says Varonis aligns with Nasdaq‑100 cybersecurity themes, which can attract thematic/ETF flows and investor interest in security software names. Varonis aligns with Nasdaq‑100 cybersecurity themes
• Neutral Sentiment: Market activity shows unusually large options volume for VRNS, which often signals short‑term speculation or hedging that can increase intraday volatility but not necessarily change fundamentals. Unusually large options volume
• Neutral Sentiment: Some outlets report new analyst targets around the mid‑$30s (e.g., $34.20 reported), showing mixed analyst views after recent results. These disparate targets can produce short-term trading moves as investors digest the consensus. Analyst price target reporting
• Negative Sentiment: Multiple law firms have filed or are soliciting clients for a securities class action against Varonis (alleging misleading statements about its SaaS transition). Widespread plaintiff‑firm notices and a filed class action increase legal risk, potential costs, and investor uncertainty. Bronstein Gewirtz Grossman class action
• Negative Sentiment: Several sell‑side firms cut price targets (Cantor Fitzgerald, JPMorgan, Truist, Wedbush, Citi and others lowered targets in recent notes), signaling reduced near‑term optimism about growth/transition dynamics and likely applying downward pressure on the stock. Analyst price target cuts roundup
• Negative Sentiment: Coverage of the post‑earnings selloff highlights that, while Varonis beat the quarter, aspects of the report (and guidance/discussion around the SaaS transition) worried investors and contributed to a sharp drawdown. That earnings reaction remains a key driver of current sentiment. Post‑earnings selloff analysis

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.