Wells Fargo & Company Initiates Coverage on Varonis Systems (NASDAQ:VRNS)

Equities researchers at Wells Fargo & Company began coverage on shares of Varonis Systems (NASDAQ:VRNS) in a report issued on Tuesday, Marketbeat reports. The firm set an “overweight” rating and a $28.00 price target on the technology company’s stock. Wells Fargo & Company‘s price target would suggest a potential upside of 19.20% from the stock’s previous close.

VRNS has been the subject of a number of other research reports. Stephens initiated coverage on Varonis Systems in a research report on Tuesday, December 30th. They set an “equal weight” rating and a $40.00 price target for the company. Truist Financial dropped their target price on shares of Varonis Systems from $42.00 to $34.00 and set a “buy” rating for the company in a research report on Wednesday, February 4th. Morgan Stanley reissued 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. UBS Group set a $50.00 price objective on shares of Varonis Systems in a research report on Monday, January 26th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Varonis Systems in a report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $43.15.

Varonis Systems Stock Down 0.3%

Shares of NASDAQ:VRNS opened at $23.49 on Tuesday. The firm has a fifty day moving average price of $29.38 and a two-hundred day moving average price of $41.29. The company has a market cap of $2.76 billion, a price-to-earnings ratio of -20.61 and a beta of 0.61. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.97 and a quick ratio of 1.97. Varonis Systems has a one year low of $20.06 and a one year high of $63.90.

Varonis Systems (NASDAQ:VRNS) last released its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.05. The firm had revenue of $173.37 million for the quarter, compared to analysts’ expectations of $168.66 million. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 22.95%. The business’s quarterly revenue was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.18 earnings per share. 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. Analysts anticipate that Varonis Systems will post -0.83 EPS for the current fiscal year.

Insider Transactions at Varonis Systems

In related news, Director John J. Gavin, Jr. acquired 5,000 shares of the stock in a transaction on Friday, February 6th. The stock was acquired at an average cost of $22.54 per share, for a total transaction of $112,700.00. Following the completion of the acquisition, the director directly owned 273,666 shares of the company’s stock, valued at approximately $6,168,431.64. This represents a 1.86% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Avrohom J. Kess acquired 17,800 shares of the stock in a transaction on Friday, February 6th. The shares were bought 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. The trade was a 56.32% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 25,780 shares of company stock worth $579,403. Company insiders own 2.30% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Pacer Advisors Inc. raised its holdings in Varonis Systems by 86.9% in the 4th quarter. Pacer Advisors Inc. now owns 11,637 shares of the technology company’s stock worth $382,000 after purchasing an additional 5,411 shares during the period. Invesco Ltd. raised its stake in shares of Varonis Systems by 14.8% in the fourth quarter. Invesco Ltd. now owns 119,313 shares of the technology company’s stock worth $3,913,000 after buying an additional 15,384 shares during the period. Corient Private Wealth LLC raised its stake in shares of Varonis Systems by 4.8% in the fourth quarter. Corient Private Wealth LLC now owns 12,717 shares of the technology company’s stock worth $417,000 after buying an additional 585 shares during the period. Empowered Funds LLC purchased a new position in shares of Varonis Systems during the 4th quarter valued at about $37,000. Finally, XTX Topco Ltd bought a new position in shares of Varonis Systems during the 4th quarter valued at approximately $811,000. 95.65% of the stock is owned by hedge funds and other institutional investors.

More Varonis Systems News

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

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.