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↑Improving
- Confirmed Downtrend Risk↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Varonis Systems, Inc. (VRNS) Stock Analysis
Range Bound setup
Technology · Software - Infrastructure
Wait for pullback to $43.47. Weak momentum; also recent C-suite change — blocks BUY_NOW at $45.74. Engine's entry $43.47 (1 ATR pullback) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5.
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
Wait for pullback to $43.47. Weak momentum; also recent C-suite change — blocks BUY_NOW at $45.74. Engine's entry $43.47 (1 ATR pullback) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5. Chart setup: RSI 50 mid-range, Bollinger mid-band. Earnings in 3 days. Wait until post-earnings. Score 5.7/10, moderate confidence.
Passes 5/9 gates (clean insider activity, news boost analyst 0.60, news boost analyst cluster(4), semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 3d<=7d. Suitability: moderate.
Recent developments
updated 2026-07-26Recent Developments — Varonis Systems, Inc.
Latest news
- NEWS DA Davidson Forecasts Strong Price Appreciation for Varonis Systems (NASDAQ:VRNS) Stock - MarketBeat — MarketBeat positive
- NEWS Royal Bank Of Canada Forecasts Strong Price Appreciation for Varonis Systems (NASDAQ:VRNS) Stock - MarketBeat — MarketBeat positive
- NEWS Why Varonis Systems (VRNS) Stock Is Trading Up Today - StockStory — StockStory positive
- NEWS Varonis Systems (NASDAQ:VRNS) Stock Price Expected to Rise, Susquehanna Analyst Says - MarketBeat — MarketBeat positive
- NEWS Varonis Systems (VRNS) Q1 earnings and revenues surpass estimates - MSN — MSN positive
Generated 2026-07-26T08:02:05Z.
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
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $43.47. Weak momentum; also recent C-suite change — blocks BUY_NOW at $45.74. Engine's entry $43.47 (1 ATR pullback) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5. Chart setup: RSI 50 mid-range, Bollinger mid-band. Earnings in 3 days. Wait until post-earnings. Target $48.55 (+6.1%), stop $40.43 (−13.1%), A.R:R -0.5:1. Score 5.7/10, moderate confidence.
Take-profit target: $48.55 (-7.6% upside). Target $48.55 (+6.1%), stop $40.43 (−13.1%), A.R:R -0.5:1. Stop-loss: $40.43.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5.
Varonis Systems, Inc. trades at a P/E of N/A (forward 119.2). TrendMatrix value score: 4.4/10. Verdict: Buy (Wait for Entry).
30 analysts cover VRNS with a consensus score of 4.0/5. Average price target: $47.
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.