Varonis Systems (NASDAQ:VRNS) Shares Down 9.7% – Here’s Why

Varonis Systems, Inc. (NASDAQ:VRNS)’s stock price traded down 9.7% during mid-day trading on Monday . The company traded as low as $21.49 and last traded at $21.3930. 1,056,152 shares were traded during trading, a decline of 72% from the average session volume of 3,718,040 shares. The stock had previously closed at $23.69.

More Varonis Systems News

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

• Positive Sentiment: Recent quarterly results showed a mild beat on revenue and EPS and management provided FY‑2026 / Q1‑2026 guidance that markets could interpret as de‑risking the turnaround, supporting buying interest despite earlier declines. (This earnings detail is the backdrop to today’s move.)
• Neutral Sentiment: Yahoo Finance ran a piece describing diverging analyst views and a shifting investment story for Varonis — highlighting that some analysts see recovery potential while others remain cautious about margins, SaaS execution and persistent revenue pressure. How The Varonis Systems (VRNS) Investment Story Is Shifting As Analyst Views Diverge
• Negative Sentiment: Hagens Berman and other firms allege Varonis concealed “renewal softness” in its Federal vertical and legacy on‑premises business and have pointed to steep term‑license declines (one release cites a 63.9% drop) while the company touted a de‑risked SaaS transition — this raises potential disclosure/liability risk and could lead to costly litigation or settlement. VRNS Federal Sector Collapse: Hagens Berman Investigating
• Negative Sentiment: Dozens of plaintiff law firms (Rosen, Berger Montague, Levi & Korsinsky, Faruqi & Faruqi, Pomerantz, Robbins Geller, Bronstein Gewirtz & Grossman, Portnoy, Gross Law Firm, Bernstein Liebhard, etc.) have filed or issued investor alerts about a class action covering purchases from Feb 4, 2025 to Oct 28, 2025 and are seeking lead plaintiff motions by March 9, 2026 — the volume of notices increases headline risk and may pressure sentiment. Example notice (Rosen): VRNS Deadline: Rosen Law Firm
• Negative Sentiment: Multiple additional firm alerts reiterate the March‑9 lead‑plaintiff deadline and encourage class participation — the repeated notices (e.g., Berger Montague, Faruqi & Faruqi) keep the story in the news flow and may sustain downside pressure until legal exposure is clearer. Berger Montague Advises Investors

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Citigroup reduced their price objective on Varonis Systems from $37.00 to $28.00 and set a “neutral” rating for the company in a report on Wednesday, February 4th. Robert W. Baird cut shares of Varonis Systems from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 29th. B. Riley Financial decreased their target price on shares of Varonis Systems from $58.00 to $45.00 and set a “buy” rating for the company in a research note on Wednesday, February 4th. Truist Financial lowered their price target on Varonis Systems from $42.00 to $34.00 and set a “buy” rating on the stock in a report on Wednesday, February 4th. Finally, Wedbush lowered their target price on Varonis Systems from $53.00 to $35.00 and set an “outperform” rating on the stock in a report on Wednesday, February 4th. Sixteen analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Varonis Systems has a consensus rating of “Moderate Buy” and a consensus target price of $45.25.

Varonis Systems Price Performance

The firm has a market cap of $2.67 billion, a PE ratio of -19.93 and a beta of 0.58. The firm’s fifty day simple moving average is $30.40 and its two-hundred day simple moving average is $42.47. The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.76.

Varonis Systems (NASDAQ:VRNS) last released its earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.05. The company 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%. Varonis Systems’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.18 EPS. 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, research analysts expect that Varonis Systems, Inc. will post -0.83 EPS for the current year.

Insider Buying and Selling

In other Varonis Systems news, EVP David Bass purchased 2,980 shares of the company’s stock in a transaction on Monday, February 9th. The stock was acquired at an average cost of $23.47 per share, for a total transaction of $69,940.60. Following the purchase, the executive vice president directly owned 1,042,924 shares of the company’s stock, valued at $24,477,426.28. This trade represents a 0.29% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Avrohom J. Kess bought 17,800 shares of the stock in a transaction dated Friday, February 6th. The stock was bought at an average cost of $22.29 per share, for a total transaction of $396,762.00. Following the acquisition, the director directly owned 49,403 shares of the company’s stock, valued at approximately $1,101,192.87. This represents a 56.32% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders acquired 25,780 shares of company stock worth $579,403. 2.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bessemer Group Inc. increased its holdings in shares of Varonis Systems by 179.1% in the second quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock worth $25,000 after purchasing an additional 317 shares during the last quarter. Signaturefd LLC raised its holdings in shares of Varonis Systems by 47.8% during the 4th quarter. Signaturefd LLC now owns 995 shares of the technology company’s stock worth $33,000 after acquiring an additional 322 shares in the last quarter. Empowered Funds LLC purchased a new stake in shares of Varonis Systems during the 4th quarter worth approximately $37,000. Allworth Financial LP boosted 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 acquiring an additional 463 shares during the last quarter. Finally, Neo Ivy Capital Management purchased a new position in shares of Varonis Systems in the third quarter valued at $42,000. 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.