Varonis Systems (NASDAQ:VRNS) Shares Gap Down on Disappointing Earnings

Shares of Varonis Systems, Inc. (NASDAQ:VRNS) gapped down prior to trading on Wednesday following a dissappointing 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.

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

Analyst Ratings Changes

Several equities analysts have recently commented on VRNS shares. Needham & Company LLC reissued a “buy” rating and issued a $67.00 target price on shares of Varonis Systems in a report on Wednesday. Piper Sandler decreased their price target on shares of Varonis Systems from $55.00 to $50.00 and set a “neutral” rating on the stock in a research note on Monday, January 6th. DA Davidson cut their price objective on Varonis Systems from $50.00 to $47.00 and set a “neutral” rating for the company in a research report on Thursday, December 12th. Robert W. Baird boosted their target price on Varonis Systems from $60.00 to $62.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 23rd. Finally, Royal Bank of Canada reissued an “outperform” rating and set a $65.00 price target on shares of Varonis Systems in a research note on Wednesday, October 30th. Five analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $59.12.

Insider Activity

In related news, CFO Guy Melamed sold 91,345 shares of Varonis Systems stock in a transaction dated Wednesday, November 13th. The shares were sold at an average price of $53.70, for a total transaction of $4,905,226.50. Following the completion of the sale, the chief financial officer now owns 504,598 shares in the company, valued at $27,096,912.60. This trade represents a 15.33 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors have recently modified their holdings of the stock. Marshall Wace LLP purchased a new stake in Varonis Systems in the second quarter worth about $260,000. Diversified Trust Co raised its holdings in shares of Varonis Systems by 12.4% in the 3rd 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 in the last quarter. Creative Planning lifted its position in shares of Varonis Systems by 66.4% in the 3rd quarter. Creative Planning now owns 24,265 shares of the technology company’s stock worth $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 in the last quarter. Finally, nVerses Capital LLC purchased a new position in Varonis Systems during the third quarter valued at approximately $446,000. 95.65% of the stock is owned by hedge funds and other institutional investors.

Varonis Systems Stock Down 7.4 %

The business’s 50 day moving average is $46.19 and its 200 day moving average is $51.36. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 1.05. The company has a market cap of $4.88 billion, a P/E ratio of -57.83 and a beta of 0.83.

About Varonis Systems

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.