Varonis Systems: An In-Depth Analysis of Ratings and Performance
Date: August 5, 2023
Varonis Systems, Inc. is a global provider of software products and services that enable organizations to manage, analyze, alert, and secure their enterprise data. The company operates in various regions around the world, including North America, Europe, the Middle East, Africa, and beyond. With a focus on protecting sensitive information across on-premises and cloud environments, Varonis plays a crucial role in safeguarding valuable assets for businesses. In this article, we delve into recent analyst ratings and explore the financial performance of Varonis Systems as of August 5th, 2023.
Recent Analyst Ratings:
A number of prominent analysts have recently expressed their views on Varonis Systems’ stock. Barclays increased their target price from $30.00 to $35.00 while maintaining an “equal weight” rating in a research report released on Tuesday. Similarly, Piper Sandler raised their price target from $25.00 to $30.00 with a “neutral” rating for the company in a report published on the same day. JMP Securities reissued its “market outperform” rating and assigned a price target of $63.00 in another report issued on Wednesday.
Craig Hallum notably upgraded Varonis Systems from “hold” to “buy,” setting a price target of $35.00 for the company in their comprehensive analysis released on Tuesday. Stephens also reiterated an “overweight” rating recommending investors to consider Varonis stock with a price target at $32.00.
According to Bloomberg.com’s data compilation, one analyst has rated the stock as sell while ten have suggested holding onto it and another ten have given it a buy recommendation overall. The average rating conferred by these analysts is classified as “Hold,” with an average price target estimated at $33.16.
Varonis Systems specializes in providing innovative software solutions that facilitate the seamless management, analysis, alerting, and securing of enterprise data. Their offerings extend protection to on-premises and cloud-based environments encompassing critical files and emails, confidential personal data, financial records, strategic plans, product information, and intellectual property.
On Friday, August 5th, 2023, Varonis Systems’ shares opened at $30.26 on NASDAQ (VRNS). The company witnessed a 12-month low of $15.61 and a high of $32.55 during this period. With a debt-to-equity ratio of 0.52 and a current ratio of 4.03, Varonis Systems demonstrates strong financial stability.
The stock’s 50-day simple moving average stands at $26.62 while its 200-day simple moving average is slightly higher at $25.92.
Varonis Systems continues to position itself as a prestigious provider of cutting-edge software products that empower businesses to protect their most valuable asset – data. Boasting an extensive network spanning multiple regions worldwide, the company has garnered significant attention from industry-leading analysts who have bestowed favorable ratings upon it.
As indicated by analyst reports cited above and Bloomberg.com’s data compilation, there is an inclination towards holding Varonis stock among market experts. With an average rating categorized as “Hold” and a target price forecasted at $33.16 as of August 5th, 2023, investors are presented with an intriguing proposition to evaluate and consider regarding the future potential for growth in this dynamic technology-driven business sector.
Varonis Systems, Inc.
Updated on: 06/08/2023
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Varonis Systems, Inc. Faces Challenges with Reduced Earnings Estimates and Negative Profitability Figures
August 5, 2023 – Varonis Systems, Inc. (NASDAQ:VRNS), a leading provider of software products and services that enable enterprises to manage and secure their data, has received a significant reduction in its Q3 2023 earnings per share (EPS) estimates by investment analysts at Wedbush. The report, released on Tuesday, August 1st, reflects Wedbush analyst D. Ives’ new projection that the technology company will earn ($0.28) per share for the quarter, down from their prior estimate of ($0.18).
In light of this revision, Wedbush has issued a “Neutral” rating for Varonis Systems with a $32.00 price target on the stock. The consensus estimate for Varonis Systems’ current full-year earnings stands at ($0.86) per share, indicating potential challenges ahead for the company.
In addition to its Q3 estimates, Wedbush has also provided projections for Varonis Systems’ performance in future quarters and fiscal years. Their estimates include expected earnings of ($0.11) EPS for Q4 2023, ($0.97) EPS for FY2023, ($0.27) EPS for Q1 2024, ($0.27) EPS for Q2 2024, ($0.26) EPS for Q3 2024, ($0.09) EPS for Q4 2024, and ($0.90) EPS for FY2024.
Varonis Systems operates globally and offers software solutions that help enterprises manage, analyze, alert, and secure their enterprise data across various regions including North America, Europe, the Middle East, Africa (EMEA), and other international markets.
The company’s software provides comprehensive protection for data stored both on-premises and in the cloud – safeguarding sensitive files and emails as well as confidential personal data belonging to customers or employees, financial records, strategic plans, and intellectual property.
Varonis Systems’ previous earnings results were released on Monday, May 1st. For the quarter, the technology company reported ($0.33) EPS, which aligned with analysts’ consensus estimates. The quarterly revenue amounted to $107.34 million, slightly exceeding the consensus estimate of $107.26 million.
Despite these prior figures, Varonis Systems faces significant challenges regarding profitability and net margin. In terms of return on equity (ROE), the company recorded a negative rate of 21.92%, while its net margin stood at a negative 23.83%. These figures raise concerns about its ongoing financial performance and ability to generate profits.
Looking at institutional investors and hedge funds activities related to Varonis Systems in recent times, there have been instances of buying and selling shares in the company. Dark Forest Capital Management LP purchased a new stake in Varonis Systems during the first quarter, spending approximately $26,000. Similarly, Point72 Hong Kong Ltd acquired shares worth roughly $30,000 during the second quarter.
Captrust Financial Advisors also increased their stake in Varonis Systems by 35.9% during the first quarter by obtaining an additional 366 shares valued at $66,000. PNC Financial Services Group Inc., on the other hand, experienced a significant increase in their share ownership as they bought an additional 1,003 shares worth $99,000 during the same period.
Lastly, Harbor Investment Advisory LLC demonstrated confidence in Varonis Systems by boosting its stake in the technology company by 21.7% during the second quarter – acquiring an additional 385 shares valued at $58,000.
Overall ownership of Varonis Systems stock among hedge funds and other institutional investors currently stands at 91.08%.
As Varonis Systems continues to navigate this challenging period marked by reduced earnings estimates and negative profitability figures, it will be interesting to see how the company strategizes and adapts to improve its financial performance in the coming quarters and fiscal years. Investors and industry observers will closely monitor the company’s progress to assess potential future investment opportunities.