By Elaine Mendonça
A leading technology company specializing in data management, Varonis Systems has been closely monitored by financial analysts as it continues to create waves in the industry. The impressive growth and performance of the company have earned it a consensus rating of “Hold” from twenty-one reputable analysts, according to Bloomberg.com. Moreover, one investment analyst has rated the stock with a sell recommendation, twelve have issued a hold recommendation, and seven have assigned a buy recommendation.
Impressively, over the past year, brokers have shown an unwavering confidence in this tech giant. The average 12-month target price currently stands at US$31.25 among those who have released ratings on the stock in recent times. This positive sentiment is driven mainly by Varonis System’s continuously innovating technology that provides safe and secure solutions for businesses worldwide.
In February 2021, Varonis Systems released its earnings results which showed that the company continues to grow from strength to strength despite operational challenges presented by COVID-19 pandemic and other market upheavals. For the quarter ending December 2020, Varonis Systems reported revenues worth US$142.62 million compared to some earlier industry estimates which gave lower figures of US$140.58 million.
Although Varonis Systems had previously faced challenging periods as reflected through their negative return on equity of 23.10 per cent and negative net margin of 26.29 per cent, their earnings per share during this period came to (US$0.08) per cent compared to analysts’ estimate at (US$0.11) per cent EPS representing an actualization of potential value exceeding experts’ projected benchmarks.
Analysts are optimistic about future growth prospects for Varonis Systems with an expected -0.82 EPS for this current year as it consolidates its footing within industry quarters especially since they continue providing innovative data management solutions geared towards efficient business service delivery across various industrials settings.
Overall investors and industry experts concur that Varonis has realized great success already, and there is good reason to be optimistic about expecting bigger feats from them. Unquestionably, Varonis Systems stands out as a worthy investment for industry players looking at big returns from their hard-earned resources.
Varonis Systems, a software company specializing in data management and protection, has been the center of attention for several research reports recently. The company’s stock was analyzed by numerous financial institutions including Robert W. Baird, Morgan Stanley, Royal Bank of Canada (RBC), Piper Sandler, and JPMorgan Chase & Co.
On January 30th of this year, Robert W. Baird lowered Varonis System’s rating from “outperform” to “neutral.” Despite this downgrade, they set a US$30.00 target price on the stock. Morgan Stanley followed up with their analysis on February 7th, increasing their target price from US$22.00 to US$24.00 while simultaneously giving Varonis Systems an “equal weight” rating.
RBC restated an “outperform” rating for the software company on March 15th with a price target of US$31.00 per share. Only a month prior to RBC’s report, Piper Sandler also issued a price objective for Varonis Systems at US$25.00 with a neutral rating. Finally, JPMorgan Chase & Co initiated coverage on the stock and gave it an “underweight” rating along with a US$25.00 target price.
However, despite these mixed signals from various financial institutions regarding the future state of VARNS stocks, it opened at US$24.95 on March 29th showing only minor fluctuations as compared to earlier months of trading since its inception.
Varonis Systems has been continuously expanding its scope over years – making steady strides that propelled them towards becoming one of America’s top technology companies delving in Cloud-enabled Security Solutions catalysed by Artificial Intelligence (AI). Their services revolve around enhancing work productivity whilst ensconcing tight security standards focusing on content minutia thereby actively safeguarding across platforms – On-Premises or over the Cloud based upon one’s preference and mandate.
In conclusion, while Varonis Systems must remain competitive in an ever-evolving market, its recent rash of financial reports demonstrates that the company possesses the necessary clout and ingenuity to succeed. As of writing this, VRNS has an impressive 50-day moving average price of US$26.26 and a 200-day moving average price of US$24.51 per share. Its reported fifty-two week low was set at US$15.61 while its fifty-two week high reached as high as US$50.80 – displaying impressive market growth over the past year. While we cannot predict with absolute certainty where the company’s future will take them, it is clear that they possess substantial potential for long-term gain through innovation and adaptability in today’s fast-paced technological landscape.
