B. Riley Cuts Varonis Systems (NASDAQ:VRNS) Price Target to $45.00

Varonis Systems (NASDAQ:VRNS) had its price target reduced by research analysts at B. Riley from $58.00 to $45.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a “buy” rating on the technology company’s stock. B. Riley’s target price indicates a potential upside of 110.97% from the stock’s current price.

A number of other analysts also recently issued reports on VRNS. Needham & Company LLC cut their price objective on shares of Varonis Systems from $55.00 to $30.00 and set a “buy” rating for the company in a report on Wednesday. Royal Bank Of Canada dropped their target price on shares of Varonis Systems from $60.00 to $41.00 and set an “outperform” rating for the company in a report on Monday, January 5th. TD Cowen lifted their price target on shares of Varonis Systems from $62.00 to $68.00 and gave the company a “buy” rating in a report on Friday, October 17th. Barclays cut their target price on shares of Varonis Systems from $50.00 to $45.00 and set an “overweight” rating on the stock in a research report on Monday, January 5th. Finally, Piper Sandler raised Varonis Systems from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $45.00 to $47.00 in a research note on Monday, January 5th. Fifteen equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Varonis Systems presently has a consensus rating of “Moderate Buy” and an average target price of $49.70.

Varonis Systems Stock Performance

Shares of NASDAQ:VRNS opened at $21.33 on Wednesday. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.81 and a quick ratio of 1.81. The firm’s 50 day simple moving average is $32.99 and its 200 day simple moving average is $45.77. Varonis Systems has a fifty-two week low of $25.03 and a fifty-two week high of $63.90. The company has a market capitalization of $2.51 billion, a price-to-earnings ratio of -26.01 and a beta of 0.58.

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, beating 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 18.82% and a negative return on equity of 21.91%. The business’s revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the firm 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, sell-side analysts forecast that Varonis Systems will post -0.83 earnings per share for the current year.

Institutional Investors Weigh In On Varonis Systems

Hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in shares of Varonis Systems by 6.5% in the fourth quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company’s stock valued at $440,119,000 after purchasing an additional 822,925 shares in the last quarter. First Trust Advisors LP increased its holdings in Varonis Systems by 7.9% during the third quarter. First Trust Advisors LP now owns 3,148,243 shares of the technology company’s stock worth $180,930,000 after buying an additional 230,852 shares during the last quarter. Geode Capital Management LLC raised its position in Varonis Systems by 0.3% in the second quarter. Geode Capital Management LLC now owns 2,670,343 shares of the technology company’s stock worth $135,537,000 after acquiring an additional 7,342 shares during the period. Pictet Asset Management Holding SA grew its position in shares of Varonis Systems by 99.1% during the 4th quarter. Pictet Asset Management Holding SA now owns 2,178,380 shares of the technology company’s stock valued at $71,480,000 after acquiring an additional 1,084,267 shares during the period. Finally, Stephens Investment Management Group LLC increased its stake in shares of Varonis Systems by 4.1% during the 2nd quarter. Stephens Investment Management Group LLC now owns 1,670,404 shares of the technology company’s stock worth $84,773,000 after purchasing an additional 65,846 shares during the last quarter. 95.65% of the stock is owned by institutional investors.

Varonis Systems News Summary

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

• Positive Sentiment: Q4 results beat consensus — EPS $0.08 vs. $0.03 expected and revenue $173.4M vs. $168.7M expected; ARR and SaaS metrics improved and cash flow rose year?over?year. Read More.
• Positive Sentiment: FY?2026 guidance showed a pivot toward profitability (EPS $0.06–$0.10 vs. street at ?$0.06) and raised revenue outlook ($722–$730M vs. $718M consensus) — this suggests management expects acceleration from the SaaS transition. Read More.
• Positive Sentiment: Acquisition of AllTrue.ai (AI TRiSM) to extend Varonis into AI security — reported valuation ~$150M, which could help monetize AI governance demand and complement data/access controls. Read More.
• Neutral Sentiment: Analysts trimmed price targets but kept buy ratings — Needham cut its target from $55 to $30; Truist cut from $42 to $34. These cuts reduce upside expectations even though the ratings remain constructive. Read More.
• Negative Sentiment: Multiple law firms have filed or solicited lead?plaintiff cases alleging disclosure issues tied to the SaaS transition; an active litigation pipeline raises legal risk and potential distraction/costs. Read More.
• Negative Sentiment: Analyst/coverage and deep?dive pieces highlight margin pressure from the SaaS transition and execution risk — investors remain sensitive to growth vs. margin tradeoffs as Varonis shifts revenue mix. Read More. Read More.

About Varonis Systems

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.