Analysts at Stephens Inc. have initiated coverage on Varonis Systems (NASDAQ: VRNS), assigning an equal weight rating and setting a target price of $40.00 for the stock. The announcement came in a research note released on October 31, 2023, and follows a series of assessments from various financial firms regarding the cybersecurity company.
Barclays recently raised its price objective for Varonis Systems from $62.00 to $70.00, while maintaining an “overweight” rating. In contrast, Needham & Company reduced its target from $70.00 to $55.00, categorizing the stock as a “buy.” Additionally, Truist Financial reaffirmed a “buy” rating but decreased its price target to $50.00, down from $70.00.
Market analysts have shown a mixed outlook on Varonis. According to MarketBeat.com, the stock has received a total of sixteen buy ratings, six hold ratings, and one sell rating. The average rating stands at “Moderate Buy,” with a consensus target price of $58.80.
Recent Financial Performance
Varonis Systems reported its quarterly earnings on October 28, 2023, revealing earnings per share (EPS) of $0.06, matching analyst expectations. The company generated revenue of $161.58 million, falling short of the forecasted $166.47 million. Despite these figures, Varonis experienced a year-over-year revenue increase of 9.1% compared to the same quarter last year.
The company’s negative return on equity stood at 21.91%, with a net margin of 18.82%. For the upcoming quarter, Varonis has projected EPS guidance between $0.020 and $0.04. Analysts anticipate an EPS of -0.83 for the current fiscal year.
Institutional Investment Trends
Recent activity among institutional investors indicates a growing interest in Varonis Systems. Stephens Inc. AR increased its stake by 1.9% during the third quarter, now holding 9,105 shares valued at approximately $523,000. Similarly, Inspire Investing LLC raised its position by 2.9%, acquiring an additional 222 shares.
Quarry LP notably increased its holdings by 31.8% in the first quarter, now owning 1,082 shares worth $44,000. Arizona State Retirement System also adjusted its investment, lifting its holdings by 0.9% during the third quarter.
The institutional ownership of Varonis Systems remains significant, with 95.65% of the stock held by institutional investors. This reflects a strong commitment from larger financial entities amid the shifting landscape of the technology sector.
Founded in 2005 and headquartered in New York City, Varonis Systems specializes in cybersecurity solutions focused on the management and protection of unstructured data. The company’s flagship Data Security Platform offers advanced analytics for monitoring data across various platforms, enabling organizations to detect threats and ensure compliance effectively.
