Wedbush Has Negative Outlook of Varonis Systems Q2 Earnings

Varonis Systems, Inc. (NASDAQ:VRNS) – Wedbush reduced their Q2 2025 earnings per share (EPS) estimates for Varonis Systems in a research note issued on Wednesday, February 5th. Wedbush analyst D. Ives now forecasts that the technology company will post earnings of ($0.25) per share for the quarter, down from their prior estimate of ($0.23). The consensus estimate for Varonis Systems’ current full-year earnings is ($0.74) per share. Wedbush also issued estimates for Varonis Systems’ Q3 2025 earnings at ($0.17) EPS, Q4 2025 earnings at ($0.12) EPS, FY2025 earnings at ($0.85) EPS, Q1 2026 earnings at ($0.33) EPS, Q3 2026 earnings at ($0.11) EPS, Q4 2026 earnings at ($0.05) EPS and FY2026 earnings at ($0.73) EPS.

Varonis Systems (NASDAQ:VRNS) last posted its quarterly earnings results on Tuesday, February 4th. The technology company reported ($0.10) EPS for the quarter, missing the consensus estimate of $0.14 by ($0.24). Varonis Systems had a negative return on equity of 20.45% and a negative net margin of 17.38%.

VRNS has been the subject of a number of other reports. DA Davidson decreased their price target on Varonis Systems from $50.00 to $47.00 and set a “neutral” rating for the company in a report on Thursday, December 12th. Needham & Company LLC reaffirmed a “buy” rating and issued a $67.00 price target on shares of Varonis Systems in a report on Wednesday, February 5th. Royal Bank of Canada reiterated an “outperform” rating and issued a $65.00 price target on shares of Varonis Systems in a research note on Wednesday, October 30th. Piper Sandler reduced their price objective on shares of Varonis Systems from $55.00 to $50.00 and set a “neutral” rating for the company in a research report on Monday, January 6th. Finally, JPMorgan Chase & Co. increased their target price on shares of Varonis Systems from $59.00 to $65.00 and gave the company an “overweight” rating in a research report on Monday, October 28th. Five investment analysts have rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $59.38.

Varonis Systems Stock Performance

Shares of VRNS stock opened at $42.70 on Monday. Varonis Systems has a 12 month low of $39.62 and a 12 month high of $60.58. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 1.05. The company has a market cap of $4.80 billion, a P/E ratio of -49.65 and a beta of 0.83. The firm has a fifty day moving average price of $45.54 and a 200 day moving average price of $51.21.

Varonis Systems declared that its Board of Directors has initiated a share repurchase program on Monday, February 10th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the technology company to buy up to 2.1% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Assenagon Asset Management S.A. raised its holdings in Varonis Systems by 761.6% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,125,960 shares of the technology company’s stock worth $50,026,000 after purchasing an additional 995,274 shares during the last quarter. Raymond James Financial Inc. acquired a new position in shares of Varonis Systems during the 4th quarter worth $21,860,000. Wealthfront Advisers LLC acquired a new position in shares of Varonis Systems during the 4th quarter worth $17,088,000. WCM Investment Management LLC purchased a new stake in shares of Varonis Systems in the 3rd quarter worth about $17,419,000. Finally, Two Sigma Advisers LP grew its stake in Varonis Systems by 46.7% in the 3rd quarter. Two Sigma Advisers LP now owns 839,200 shares of the technology company’s stock valued at $47,415,000 after acquiring an additional 267,000 shares during the last quarter. Institutional investors and hedge funds own 95.65% of the company’s stock.

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.