Varonis Systems (NASDAQ:VRNS) Hits New 1-Year Low – Should You Sell?

Shares of Varonis Systems, Inc. (NASDAQ:VRNS) reached a new 52-week low during trading on Friday . The company traded as low as $37.81 and last traded at $38.36, with a volume of 2294460 shares trading hands. The stock had previously closed at $40.48.

Analyst Upgrades and Downgrades

VRNS has been the topic of a number of analyst reports. StockNews.com raised shares of Varonis Systems from a “sell” rating to a “hold” rating in a report on Saturday, March 8th. Wells Fargo & Company decreased their price target on shares of Varonis Systems from $48.00 to $46.00 and set an “equal weight” rating on the stock in a report on Wednesday, February 5th. Morgan Stanley began coverage on Varonis Systems in a research note on Tuesday, March 18th. They set an “overweight” rating for the company. Cantor Fitzgerald initiated coverage on Varonis Systems in a research note on Thursday, January 9th. They issued an “overweight” rating and a $60.00 target price on the stock. Finally, 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. Six investment analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, Varonis Systems currently has an average rating of “Moderate Buy” and an average price target of $58.53.

Varonis Systems Stock Performance

The company has a market cap of $4.32 billion, a P/E ratio of -44.60 and a beta of 0.76. The business has a 50 day moving average price of $42.29 and a two-hundred day moving average price of $47.92. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.24 and a current ratio of 1.24.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings data on Tuesday, February 4th. 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 net margin of 17.38% and a negative return on equity of 20.35%. On average, sell-side analysts anticipate that Varonis Systems, Inc. will post -0.83 earnings per share for the current year.

Varonis Systems declared that its board has initiated a share repurchase plan on Monday, February 10th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the technology company to buy up to 2.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Institutional Trading of Varonis Systems

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its position in Varonis Systems by 1.6% during the 4th quarter. Vanguard Group Inc. now owns 12,246,769 shares of the technology company’s stock valued at $544,124,000 after purchasing an additional 193,210 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Varonis Systems by 1.1% during the third quarter. Geode Capital Management LLC now owns 2,615,462 shares of the technology company’s stock valued at $147,801,000 after buying an additional 29,050 shares during the period. First Trust Advisors LP raised its holdings in shares of Varonis Systems by 4.8% during the fourth quarter. First Trust Advisors LP now owns 2,501,581 shares of the technology company’s stock valued at $111,145,000 after acquiring an additional 113,573 shares in the last quarter. William Blair Investment Management LLC lifted its stake in Varonis Systems by 2.4% in the fourth quarter. William Blair Investment Management LLC now owns 2,290,114 shares of the technology company’s stock worth $101,750,000 after acquiring an additional 52,971 shares during the period. Finally, Pictet Asset Management Holding SA increased its position in Varonis Systems by 1.3% during the 4th quarter. Pictet Asset Management Holding SA now owns 2,287,544 shares of the technology company’s stock valued at $101,636,000 after purchasing an additional 29,852 shares during the period. 95.65% of the stock is currently owned by hedge funds and other institutional investors.

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.