Varonis Systems is a data security software company with 27% revenue growth and a Rule of 40 score of 54, but the stock trades below its 200-day moving average in a confirmed downtrend, an extremely elevated put/call ratio of 8.33, and negative near-term asymmetry — making the fundamental quality story difficult to trade until momentum recovers.
Thesis pillars
- Rule Of 40 Software Quality→Stable
- Earnings Beat Consistency↓Deteriorating
- Confirmed Downtrend Risk↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Varonis Systems, Inc. (VRNS) Stock Analysis
Catalyst-Driven edge
Technology · Software - Infrastructure
Hold if already holding. Not a fresh buy at $47.06, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1).
Varonis Systems sells data security software protecting enterprise files, email, and databases across cloud, SaaS, and on-premises environments in more than 95 countries. Revenue is subscription-based via SaaS platform licenses sold through global channel partners, with renewal... Read more
Hold if already holding. Not a fresh buy at $47.06, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1). Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.5/10, high confidence.
Passes 4/8 gates (clean insider activity, news boost analyst 0.60, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-10-15Recent Developments — Varonis Systems, Inc.
Latest news
- NEWS Susquehanna Forecasts Strong Price Appreciation for Varonis Systems (NASDAQ:VRNS) Stock - MarketBeat — MarketBeat neutral
- NEWS Varonis Systems (NASDAQ:VRNS) Price Target Raised to $58.00 - MarketBeat — MarketBeat positive
- NEWS Robert W. Baird Issues Positive Forecast for Varonis Systems (NASDAQ:VRNS) Stock Price - MarketBeat — MarketBeat neutral
- NEWS Varonis Systems, Inc. Stock 12‑Month Price Target Raised to $48.76, Implies 9% Upside - TradingView — TradingView positive
- NEWS DA Davidson Forecasts Strong Price Appreciation for Varonis Systems (NASDAQ:VRNS) Stock - MarketBeat — MarketBeat positive
Generated 2026-10-15T11:42:23Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-06-02Item 5.02LOWStockholders approved increase of 6,402,279 shares available under Amended and Restated 2023 Omnibus Equity Incentive Plan at June 1, 2026 Annual Meeting. Routine compensatory arrangement expansion; no officer departure.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $47.06, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1). Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $49.30 (+4.8%), stop $43.77 (−7.5%), A.R:R -0.2:1. Score 5.5/10, high confidence.
Take-profit target: $49.30 (-1.6% upside). Target $49.30 (+4.8%), stop $43.77 (−7.5%), A.R:R -0.2:1. Stop-loss: $43.77.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1); Sector modifier (Technology): -0.8.
Varonis Systems, Inc. trades at a P/E of N/A (forward 119.4). TrendMatrix value score: 4.4/10. Verdict: Hold.
30 analysts cover VRNS with a consensus score of 4.0/5. Average price target: $51.
What does Varonis Systems, Inc. do?Varonis Systems sells data security software protecting enterprise files, email, and databases across cloud, SaaS, and...
Varonis Systems sells data security software protecting enterprise files, email, and databases across cloud, SaaS, and on-premises environments in more than 95 countries. Revenue is subscription-based via SaaS platform licenses sold through global channel partners, with renewal rates above 90% in 2025. The company announced end-of-life for on-premises products by December 31, 2026, accelerating the shift to ratable SaaS revenue recognition.