Varonis Systems (NASDAQ:VRNS) Shares Gap Up on Insider Buying Activity

Varonis Systems, Inc. (NASDAQ:VRNS)’s stock price gapped up prior to trading on Wednesday after an insider bought additional shares in the company. The stock had previously closed at $26.26, but opened at $27.80. Varonis Systems shares last traded at $25.6350, with a volume of 1,037,704 shares changing hands.

Specifically, Director Avrohom J. Kess purchased 17,800 shares of the company’s stock in a transaction on Friday, February 6th. The shares were purchased at an average price of $22.29 per share, with a total value of $396,762.00. Following the purchase, the director directly owned 49,403 shares of the company’s stock, valued at $1,101,192.87. This trade represents a 56.32% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John J. Gavin, Jr. acquired 5,000 shares of Varonis Systems stock in a transaction dated Friday, February 6th. The shares were purchased at an average cost of $22.54 per share, with a total value of $112,700.00. Following the completion of the transaction, the director directly owned 273,666 shares of the company’s stock, valued at $6,168,431.64. This trade represents a 1.86% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In other news, EVP David Bass bought 2,980 shares of the company’s stock in a transaction that occurred on Monday, February 9th. The shares were acquired at an average price of $23.47 per share, with a total value of $69,940.60. Following the transaction, the executive vice president owned 1,042,924 shares in the company, valued at $24,477,426.28. This represents a 0.29% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on VRNS. Susquehanna decreased their price target on shares of Varonis Systems from $65.00 to $50.00 and set a “positive” rating for the company in a research note on Wednesday, October 29th. Needham & Company LLC decreased their target price on shares of Varonis Systems from $55.00 to $30.00 and set a “buy” rating for the company in a research report on Wednesday, February 4th. B. Riley Financial lowered their price target on shares of Varonis Systems from $58.00 to $45.00 and set a “buy” rating on the stock in a research note on Wednesday, February 4th. Wedbush reduced their price objective on shares of Varonis Systems from $53.00 to $35.00 and set an “outperform” rating for the company in a research note on Wednesday, February 4th. Finally, JPMorgan Chase & Co. decreased their price objective on Varonis Systems from $50.00 to $38.00 and set an “overweight” rating for the company in a report on Wednesday, February 4th. Seventeen equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $45.24.

Key Varonis Systems News

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

• Positive Sentiment: Insiders bought stock (EVP David Bass purchased 2,980 shares; John Gavin Jr. bought 5,000 shares), which investors often view as a signal that management sees value at current levels. Read More. Read More..
• Positive Sentiment: DA Davidson published a bullish forecast calling for 15%–20% ARR growth and a margin rebound by 2027, supporting a constructive medium‑term revenue trajectory for Varonis. Read More.
• Neutral Sentiment: Varonis will present at the Morgan Stanley TMT conference (March 5); the event gives management a public forum to address SaaS transition progress and investor questions but is not an immediate financial catalyst. Read More.
• Negative Sentiment: Numerous plaintiff law firms have filed notices or reminders and in some cases formal complaints alleging Varonis misled investors about renewal softness and the company’s ability to convert legacy on‑prem customers to SaaS; Hagens Berman and several others are actively soliciting lead‑plaintiff applicants ahead of a March 9 deadline — this increases legal, financial and reputational risk and is the main driver of today’s negative sentiment. Read More. (multiple similar notices from Kessler Topaz, Pomerantz, Rosen, Faruqi, Gross, Bernstein Liebhard, Levi & Korsinsky, Schall, etc.).

Varonis Systems Price Performance

The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.76. The firm has a market capitalization of $2.95 billion, a price-to-earnings ratio of -22.06 and a beta of 0.58. The company’s 50 day moving average is $31.94 and its 200-day moving average is $44.49.

Varonis Systems (NASDAQ:VRNS) last released 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 return on equity of 22.95% and a negative net margin of 20.74%.The firm had revenue of $173.37 million for the quarter, compared to analyst estimates of $168.66 million. During the same quarter in the prior year, the company earned $0.18 earnings per share. 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 earnings per share for the current year.

Institutional Trading of Varonis Systems

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

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.