Varonis Systems (NASDAQ:VRNS) Cut to “Hold” at Rosenblatt Securities

Posted by George Bondi on Oct 19th, 2026

Rosenblatt Securities downgraded shares of Varonis Systems (NASDAQ:VRNS – Free Report) from a buy rating to a hold rating in a report issued on Friday, MarketBeat.com reports. The firm currently has $49.75 price target on the technology company’s stock, down from their previous price target of $55.00.

Several other research analysts have also recently commented on VRNS. Royal Bank Of Canada cut shares of Varonis Systems from an “outperform” rating to a “neutral” rating in a report on Friday. JPMorgan Chase & Co. raised their price objective on shares of Varonis Systems from $39.00 to $55.00 and gave the company an “overweight” rating in a report on Monday, July 27th. Cantor Fitzgerald restated an “overweight” rating on shares of Varonis Systems in a report on Tuesday, September 8th. UBS Group lifted their price objective on shares of Varonis Systems from $37.00 to $58.00 and gave the stock a “buy” rating in a research report on Tuesday, July 21st. Finally, Stephens upgraded shares of Varonis Systems from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $33.00 to $45.00 in a research note on Wednesday, June 24th. Six equities research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $50.94.

Get Our Latest Stock Analysis on VRNS

Varonis Systems Stock Performance

Shares of VRNS opened at $48.72 on Friday. Varonis Systems has a 1 year low of $19.70 and a 1 year high of $63.80. The stock has a market capitalization of $5.60 billion, a PE ratio of -39.61 and a beta of 0.77. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.65 and a current ratio of 1.65. The stock has a 50-day simple moving average of $45.81 and a 200-day simple moving average of $38.08.

Varonis Systems (NASDAQ:VRNS – Get Free Report) last released its earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share for the quarter, topping analysts’ consensus estimates of $0.01 by $0.03. The firm had revenue of $180.02 million for the quarter, compared to analyst estimates of $176.83 million. Varonis Systems had a negative net margin of 20.55% and a negative return on equity of 19.18%. The business’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.03 earnings per share. Varonis Systems has set its FY 2026 guidance at 0.140-0.150 EPS and its Q3 2026 guidance at 0.020-0.030 EPS. On average, analysts predict that Varonis Systems will post -0.95 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. American Capital Management Inc. acquired a new stake in shares of Varonis Systems during the second quarter worth about $94,062,000. Clal Insurance Enterprises Holdings Ltd purchased a new position in shares of Varonis Systems during the second quarter worth about $61,262,000. Senvest Management LLC increased its position in Varonis Systems by 406.1% in the 1st quarter. Senvest Management LLC now owns 1,448,943 shares of the technology company’s stock valued at $31,109,000 after acquiring an additional 1,162,651 shares during the period. Arrowstreet Capital Limited Partnership increased its position in Varonis Systems by 218.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,409,487 shares of the technology company’s stock valued at $30,262,000 after acquiring an additional 966,817 shares during the period. Finally, Pictet Asset Management Holding SA increased its position in Varonis Systems by 43.4% in the 1st quarter. Pictet Asset Management Holding SA now owns 3,123,056 shares of the technology company’s stock valued at $67,029,000 after acquiring an additional 944,676 shares during the period. 95.65% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Varonis Systems

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

Positive Sentiment: The proposed acquisition removes much of the company-specific uncertainty and offers shareholders a cash consideration above Varonis’s pre-deal trading level. RBC said the combination makes strategic sense as competition in cybersecurity intensifies. RBC on Varonis Acquisition
Neutral Sentiment: Analyst actions largely reflect the announced transaction. Citigroup, Robert W. Baird and Wedbush raised their targets to approximately $49.75-$50, while Piper Sandler, TD Cowen, Jefferies, Wells Fargo, DA Davidson and Rosenblatt reaffirmed neutral, hold or equal-weight ratings with targets near $49.75. These targets imply limited additional upside because they are close to the offer price.
Neutral Sentiment: Unusually heavy options activity included purchases of 7,193 call contracts, about 186% above average call volume, suggesting elevated speculative interest following the deal announcement. However, options activity does not guarantee further gains.
Negative Sentiment: RBC downgraded Varonis to Sector Perform and lowered its target to $49.75 from $52, citing the Proofpoint transaction. With the stock near the cash offer, the remaining upside is limited and depends primarily on deal completion rather than operating performance.
Negative Sentiment: Several shareholder-rights law firms announced investigations into whether the $49.75 offer fairly values Varonis and whether the board adequately protected investors. Such reviews could create transaction uncertainty, although they do not necessarily indicate that the deal will fail. Ademi Varonis Shareholder Alert

Varonis Systems Company Profile

(Get Free Report)

Varonis Systems, Inc develops data security and cyber-risk management software for organizations seeking to protect sensitive information from unauthorized access, misuse, and cyberattacks. Its platform helps customers discover and classify data, analyze access permissions, identify unusual activity, and remediate security exposures across on-premises and cloud-based environments.

The company’s offerings are designed to secure data stored in file systems, collaboration platforms, databases, email, and other enterprise repositories.