Varonis Systems (NASDAQ:VRNS) Shares Gap Down Following Weak Earnings

Varonis Systems, Inc. (NASDAQ:VRNS)’s stock price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $46.84, but opened at $43.21. Varonis Systems shares last traded at $42.62, with a volume of 797,265 shares.

The technology company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.24). Varonis Systems had a negative net margin of 15.31% and a negative return on equity of 17.58%.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Wells Fargo & Company lowered their price target on Varonis Systems from $48.00 to $46.00 and set an “equal weight” rating on the stock in a research report on Wednesday. Needham & Company LLC reiterated a “buy” rating and issued a $67.00 price target on shares of Varonis Systems in a report on Wednesday. Jefferies Financial Group decreased their price target on Varonis Systems from $60.00 to $50.00 and set a “hold” rating on the stock in a report on Thursday, December 19th. Cantor Fitzgerald started coverage on Varonis Systems in a report on Thursday, January 9th. They issued an “overweight” rating and a $60.00 price target on the stock. Finally, Royal Bank of Canada reiterated an “outperform” rating and issued a $65.00 price target on shares of Varonis Systems in a report on Wednesday, October 30th. Five research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $59.38.

Insider Activity

In other news, CFO Guy Melamed sold 91,345 shares of Varonis Systems stock in a transaction dated Wednesday, November 13th. The stock was sold at an average price of $53.70, for a total transaction of $4,905,226.50. Following the transaction, the chief financial officer now owns 504,598 shares in the company, valued at $27,096,912.60. The trade was a 15.33 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Varonis Systems

Several institutional investors have recently modified their holdings of the business. Virtue Capital Management LLC lifted its stake in Varonis Systems by 2.3% in the 3rd quarter. Virtue Capital Management LLC now owns 16,264 shares of the technology company’s stock valued at $919,000 after acquiring an additional 364 shares in the last quarter. Bailard Inc. increased its position in shares of Varonis Systems by 0.4% during the 4th quarter. Bailard Inc. now owns 93,627 shares of the technology company’s stock worth $4,160,000 after purchasing an additional 417 shares during the last quarter. Farther Finance Advisors LLC increased its position in shares of Varonis Systems by 445.3% during the 3rd quarter. Farther Finance Advisors LLC now owns 518 shares of the technology company’s stock worth $29,000 after purchasing an additional 423 shares during the last quarter. Arizona State Retirement System increased its position in shares of Varonis Systems by 1.3% during the 4th quarter. Arizona State Retirement System now owns 32,531 shares of the technology company’s stock worth $1,445,000 after purchasing an additional 425 shares during the last quarter. Finally, Pacer Advisors Inc. increased its position in shares of Varonis Systems by 29.5% during the 4th quarter. Pacer Advisors Inc. now owns 2,645 shares of the technology company’s stock worth $118,000 after purchasing an additional 603 shares during the last quarter. Institutional investors own 95.65% of the company’s stock.

Varonis Systems Price Performance

The stock has a market cap of $4.50 billion, a price-to-earnings ratio of -53.35 and a beta of 0.83. The company has a 50-day simple moving average of $46.06 and a two-hundred day simple moving average of $51.31. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.81 and a current ratio of 1.81.

About Varonis Systems

Varonis Systems, Inc provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; source code, strategic and product plans; and other intellectual property.