Varonis Systems (NASDAQ:VRNS) Shares Gap Down on Disappointing 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 changing hands.

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

Wall Street Analyst Weigh In

VRNS has been the subject of several recent analyst reports. Royal Bank of Canada reaffirmed an “outperform” rating and set a $65.00 price objective on shares of Varonis Systems in a research note on Wednesday, October 30th. DA Davidson reduced their price objective on shares of Varonis Systems from $50.00 to $47.00 and set a “neutral” rating for the company in a research note on Thursday, December 12th. Jefferies Financial Group reduced their price objective on shares of Varonis Systems from $60.00 to $50.00 and set a “hold” rating for the company in a research note on Thursday, December 19th. Cantor Fitzgerald initiated coverage on shares of Varonis Systems in a research note on Thursday, January 9th. They set an “overweight” rating and a $60.00 price objective for the company. Finally, 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 note on Monday, January 6th. Five equities research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Varonis Systems has a consensus rating of “Moderate Buy” and a consensus target price of $59.44.

Insider Buying and Selling at Varonis Systems

In related news, CFO Guy Melamed sold 91,345 shares of the firm’s stock in a transaction that occurred on Wednesday, November 13th. The shares were sold at an average price of $53.70, for a total value of $4,905,226.50. Following the transaction, the chief financial officer now owns 504,598 shares of the company’s stock, valued at approximately $27,096,912.60. This trade represents a 15.33 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 2.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Varonis Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VRNS. Marshall Wace LLP purchased a new stake in shares of Varonis Systems during the second quarter valued at $260,000. Diversified Trust Co boosted its stake in shares of Varonis Systems by 12.4% during the third quarter. Diversified Trust Co now owns 13,474 shares of the technology company’s stock valued at $761,000 after purchasing an additional 1,485 shares during the period. Creative Planning boosted its stake in shares of Varonis Systems by 66.4% during the third quarter. Creative Planning now owns 24,265 shares of the technology company’s stock valued at $1,371,000 after purchasing an additional 9,681 shares during the period. Vontobel Holding Ltd. boosted its stake in shares of Varonis Systems by 226.9% during the third quarter. Vontobel Holding Ltd. now owns 20,595 shares of the technology company’s stock valued at $1,164,000 after purchasing an additional 14,295 shares during the period. Finally, nVerses Capital LLC purchased a new stake in shares of Varonis Systems during the third quarter valued at $446,000. Institutional investors own 95.65% of the company’s stock.

Varonis Systems Trading Down 9.2 %

The stock’s 50 day moving average is $46.19 and its two-hundred day moving average is $51.36. The company has a market capitalization of $4.78 billion, a PE ratio of -56.82 and a beta of 0.83. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 1.05.

Varonis Systems Company Profile

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.