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
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 4, 2026· older than 90 days
Varonis Systems, Inc. (VRNS) Stock Analysis
Technology · Software - Infrastructure
Sell if holding. Analyst target reached at $48.96 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (2.7% away).
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
Sell if holding. Analyst target reached at $48.96 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (2.7% away). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.2/10, high confidence.
Passes 4/7 gates (clean insider activity, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated Nov 3, 2026Recent Developments — Varonis Systems, Inc.
Latest news
- NEWS Varonis Systems Q3 Adj. EPS $0.09 Beats $0.03 Estimate, Sales $181.461M Miss $186.879M Estimate — benzinga Nov 3, 2026 neutral
- NEWS Varonis Systems jumps 52 places on the Roundtable 100 - Yahoo Finance — Yahoo Finance Oct 28, 2026 positive
- NEWS Varonis (VRNS) Stock May Be 31% Undervalued After AI Governance News - Simply Wall St — Simply Wall St Oct 28, 2026 positive
- NEWS Varonis Systems (NASDAQ:VRNS) Stock Rating Lowered by Barclays - MarketBeat — MarketBeat Oct 28, 2026 negative
- NEWS Varonis Systems (NASDAQ:VRNS) Rating Lowered to Neutral at DA Davidson - MarketBeat — MarketBeat Oct 28, 2026 negative
Latest item Nov 3, 2026 · Generated 2026-11-04T11:59:37Z.
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. How we score · Editorial policy
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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
Sell if holding. Analyst target reached at $48.96 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (2.7% away). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $48.14. Score 5.2/10, high confidence.
Analyst target $45.65 reached (−6.8% from $48.96); no take-profit level is published. Prior stop was $48.14. Stop-loss: $48.14.
Analyst target reached - limited upside remaining; Near 52-week high (2.7% away); V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1).
Varonis Systems, Inc. trades at a P/E of N/A (forward 118.8). TrendMatrix value score: 4.4/10. Verdict: Sell.
28 analysts rate VRNS, with a consensus score of 3.4/5. 18 analysts publish price targets averaging $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.