Varonis Systems, Inc. has garnered attention from analysts, with a consensus recommendation of “Moderate Buy” from twenty-two research firms covering the company. According to MarketBeat, the average target price set by these brokerages for the stock is approximately $59.79.
Analysts’ ratings vary, with one firm issuing a sell rating, five recommending a hold, and the majority—sixteen in total—advocating for a buy. Notably, Royal Bank of Canada revised its price target from $72.00 to $60.00, maintaining an “outperform” rating as of October 29, 2023. Similarly, Piper Sandler reduced its target from $50.00 to $45.00, indicating a “neutral” stance on the stock.
In a separate analysis, Citigroup lowered its target from $58.00 to $40.00, also adopting a “neutral” rating. Cantor Fitzgerald set a target price of $60.00 and labeled the stock as “overweight.” Meanwhile, Zacks Research recently upgraded Varonis from a “strong sell” to a “hold” rating on November 11, 2023.
Latest Trading Data and Financial Performance
On October 28, 2023, Varonis Systems reported earnings that matched analysts’ expectations, with earnings per share at $0.06. The company’s revenue for the quarter reached $161.58 million, slightly below the consensus estimate of $166.47 million. Varonis experienced a negative net margin of 18.82% and a negative return on equity of 21.91%, although this marked a 9.1% increase in revenue compared to the same period last year when it reported earnings of $0.10 per share.
As of the latest trading session, Varonis stock opened at $33.35, showing an increase of 0.3%. The company has a market capitalization of $3.93 billion, with a fifty-day simple moving average of $38.88 and a two-hundred-day average of $49.39. Varonis has fluctuated between a one-year low of $30.02 and a high of $63.90.
Company Overview and Core Offerings
Founded in 2005 and headquartered in New York City, Varonis Systems specializes in cybersecurity, focusing on the protection and management of unstructured data. The firm’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 equips organizations to detect insider threats, ensure compliance, and remediate exposed data in real time. The company serves a diverse global clientele across various sectors, including financial services, healthcare, media, manufacturing, and government.
With analysts forecasting that Varonis will post an earnings per share of -0.83 for the current year, stakeholders will be closely monitoring the company’s performance in the upcoming quarters. As Varonis continues to adapt to the evolving cybersecurity landscape, its strategic decisions will likely shape its financial trajectory in the near future.
