Varonis Systems (NASDAQ:VRNS) Cut to “Hold” at TD Cowen

Posted by Brian Himes on Oct 19th, 2026

TD Cowen cut shares of Varonis Systems (NASDAQ:VRNS – Free Report) from a buy rating to a hold rating in a research note published on Friday morning, Marketbeat reports. TD Cowen currently has $49.75 price target on the technology company’s stock, down from their previous price target of $56.00.

VRNS has been the subject of a number of other reports. Jefferies Financial Group cut shares of Varonis Systems from a “buy” rating to a “hold” rating and reduced their price objective for the company from $60.00 to $49.75 in a report on Friday. B. Riley Financial boosted their price objective on Varonis Systems from $45.00 to $55.00 and gave the stock a “buy” rating in a report on Friday, July 24th. Weiss Ratings downgraded Varonis Systems from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, October 9th. Piper Sandler raised their target price on Varonis Systems from $47.00 to $58.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. Finally, DA Davidson restated a “neutral” rating and issued a $49.75 target price (down from $55.00) on shares of Varonis Systems in a report on Friday. 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’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $50.94.

Check Out Our Latest Research Report on VRNS

Varonis Systems Stock Performance

NASDAQ:VRNS opened at $48.72 on Friday. The company has a fifty day moving average of $45.81 and a 200-day moving average of $38.08. The firm has a market capitalization of $5.60 billion, a P/E ratio of -39.61 and a beta of 0.77. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 1.02. Varonis Systems has a twelve month low of $19.70 and a twelve month high of $63.80.

Varonis Systems (NASDAQ:VRNS – Get Free Report) last issued its earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.03. The business 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%. Varonis Systems’s revenue was up 18.3% on a year-over-year basis. 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. As a group, sell-side analysts anticipate that Varonis Systems will post -0.95 EPS for the current year.

Institutional Investors Weigh In On Varonis Systems

Large investors have recently modified their holdings of the stock. Corient Private Wealth LLC raised its holdings in shares of Varonis Systems by 4.8% in the 4th quarter. Corient Private Wealth LLC now owns 12,717 shares of the technology company’s stock worth $417,000 after purchasing an additional 585 shares during the period. EverSource Wealth Advisors LLC lifted its stake in Varonis Systems by 161.0% in the first quarter. EverSource Wealth Advisors LLC now owns 1,360 shares of the technology company’s stock valued at $29,000 after purchasing an additional 839 shares during the last quarter. Assetmark Inc. grew its holdings in Varonis Systems by 21.0% during the first quarter. Assetmark Inc. now owns 4,848 shares of the technology company’s stock valued at $104,000 after purchasing an additional 841 shares during the period. Essential Partners LLC grew its holdings in Varonis Systems by 72.5% during the first quarter. Essential Partners LLC now owns 2,054 shares of the technology company’s stock valued at $44,000 after purchasing an additional 863 shares during the period. Finally, Versant Capital Management Inc grew its holdings in Varonis Systems by 27.3% during the second quarter. Versant Capital Management Inc now owns 4,232 shares of the technology company’s stock valued at $178,000 after purchasing an additional 907 shares during the period. Hedge funds and other institutional investors own 95.65% of the company’s stock.

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.