Varonis Systems (NASDAQ:VRNS) Shares Gap Down – Should You Sell?

Varonis Systems, Inc. (NASDAQ:VRNS)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $58.78, but opened at $54.04. Varonis Systems shares last traded at $54.12, with a volume of 585,500 shares changing hands.

Analysts Set New Price Targets

Several research firms recently commented on VRNS. Needham & Company LLC restated a “hold” rating on shares of Varonis Systems in a report on Tuesday, July 30th. JPMorgan Chase & Co. lifted their target price on shares of Varonis Systems from $59.00 to $65.00 and gave the company an “overweight” rating in a research note on Monday. Truist Financial reaffirmed a “buy” rating and issued a $60.00 price target (up from $55.00) on shares of Varonis Systems in a research note on Tuesday, July 30th. Royal Bank of Canada lifted their price objective on Varonis Systems from $58.00 to $65.00 and gave the company an “outperform” rating in a research report on Tuesday, July 30th. Finally, Barclays upped their target price on Varonis Systems from $60.00 to $65.00 and gave the stock an “overweight” rating in a research report on Monday, October 7th. Six investment analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $58.31.

Varonis Systems Stock Down 6.0 %

The company has a current ratio of 2.44, a quick ratio of 2.44 and a debt-to-equity ratio of 0.55. The firm’s fifty day moving average is $56.19 and its 200 day moving average is $49.97. The stock has a market cap of $6.16 billion, a P/E ratio of -58.13 and a beta of 0.82.

Varonis Systems (NASDAQ:VRNS) last released its earnings results on Monday, July 29th. The technology company reported $0.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.02) by $0.07. Varonis Systems had a negative return on equity of 18.31% and a negative net margin of 16.97%. The firm had revenue of $130.35 million for the quarter, compared to analyst estimates of $124.83 million. During the same quarter last year, the firm posted ($0.35) EPS. The company’s revenue was up 12.9% on a year-over-year basis. As a group, equities research analysts forecast that Varonis Systems, Inc. will post -0.83 EPS for the current year.

Insider Buying and Selling

In related news, Vice Chairman James O’boyle sold 75,000 shares of the stock in a transaction dated Tuesday, August 6th. The shares were sold at an average price of $51.04, for a total value of $3,828,000.00. Following the completion of the sale, the insider now owns 494,114 shares in the company, valued at approximately $25,219,578.56. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 2.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Varonis Systems

Several institutional investors and hedge funds have recently bought and sold shares of VRNS. Vanguard Group Inc. increased its stake in Varonis Systems by 1.4% in the first quarter. Vanguard Group Inc. now owns 11,256,692 shares of the technology company’s stock valued at $530,978,000 after acquiring an additional 155,040 shares during the period. Thrivent Financial for Lutherans boosted its stake in shares of Varonis Systems by 4.6% in the 2nd quarter. Thrivent Financial for Lutherans now owns 2,874,388 shares of the technology company’s stock valued at $137,885,000 after purchasing an additional 127,129 shares in the last quarter. William Blair Investment Management LLC grew its holdings in shares of Varonis Systems by 1.1% in the 2nd quarter. William Blair Investment Management LLC now owns 2,217,967 shares of the technology company’s stock worth $106,396,000 after purchasing an additional 23,231 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. increased its holdings in shares of Varonis Systems by 126.8% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,915,119 shares of the technology company’s stock worth $90,336,000 after buying an additional 1,070,821 shares in the last quarter. Finally, Principal Financial Group Inc. raised its stake in shares of Varonis Systems by 8.9% in the second quarter. Principal Financial Group Inc. now owns 1,636,792 shares of the technology company’s stock valued at $78,517,000 after acquiring an additional 133,109 shares during the last quarter. Institutional investors own 95.65% of the company’s stock.

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.