Stocks of Varonis Systems Inc. (VRNS) are poised to climb above their peers

Varonis Systems Inc. (NASDAQ: VRNS) stock jumped 2.30% on Monday to $31.56 against a previous-day closing price of $30.85. With 0.5 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.84 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $31.78 whereas the lowest price it dropped to was $30.66. The 52-week range on VRNS shows that it touched its highest point at $32.64 and its lowest point at $15.61 during that stretch. It currently has a 1-year price target of $34.75. Beta for the stock currently stands at 0.85.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VRNS was down-trending over the past week, with a drop of -0.03%, but this was up by 6.30% over a month. Three-month performance surged to 19.18% while six-month performance rose 24.40%. The stock gained 9.89% in the past year, while it has gained 31.83% so far this year. A look at the trailing 12-month EPS for VRNS yields -1.07 with Next year EPS estimates of 0.27. For the next quarter, that number is 0.02. This implies an EPS growth rate of -2.70% for this year and 22.48% for next year. EPS is expected to grow by 46.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -46.60%.

Float and Shares Shorts:

At present, 109.74 million VRNS shares are outstanding with a float of 107.31 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.46 million, which was 4.98% higher than short shares on Jul 30, 2023. In addition to Mr. Yakov Faitelson as the firm’s Co-Founder, Chairman, CEO & Pres, Mr. Ohad Korkus serves as its Co-Founder & Independent Director.

Institutional Ownership:

Other institutions hold 51.57% of VRNS, in contrast to 44.51% held by mutual funds. Shares owned by individuals account for 12.17%. As the largest shareholder in VRNS with 9.82% of the stake, The Vanguard Group, Inc. holds 10,763,323 shares worth 10,763,323. A second-largest stockholder of VRNS, BlackRock Fund Advisors, holds 8,333,333 shares, controlling over 7.60% of the firm’s shares. First Trust Advisors LP is the third largest shareholder in VRNS, holding 3,743,656 shares or 3.41% stake. With a 3.00% stake in VRNS, the First Trust NASDAQ Cybersecurity is the largest stakeholder. A total of 3,287,269 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.91% of VRNS stock, is the second-largest Mutual Fund holder. It holds 3,184,926 shares valued at 101.69 million. Vanguard Small Cap Index Fund holds 2.48% of the stake in VRNS, owning 2,717,638 shares worth 86.77 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, VRNS reported revenue of $111.45M and operating income of -$37.57M. The EBITDA in the recently reported quarter was -$37.57M and diluted EPS was -$0.33.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VRNS since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With VRNS analysts setting a high price target of $63.00 and a low target of $27.00, the average target price over the next 12 months is $34.89. Based on these targets, VRNS could surge 99.62% to reach the target high and fall by -14.45% to reach the target low. Reaching the average price target will result in a growth of 10.55% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded VRNS stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 1,250 shares were bought while 34,000 shares were sold. The number of buy transactions has increased to 34 while that of sell transactions has risen to 13 over the past year. The total number of shares bought during that period was 1,461,755 while 779,083 shares were sold.

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