Varonis Systems Inc. reported an insider purchase on February 6, 2026, when director Avrohom J. Kess acquired 17,800 shares of the company’s common stock, according to a Form 4 filing with the Securities and Exchange Commission. The shares changed hands at $22.29 each, producing a reported transaction value of $396,762.
Following the purchase, Kess directly owns 49,403 shares of the cybersecurity company. The firm's market capitalization is approximately $3.07 billion and its balance sheet shows more cash than debt.
The stock has rebounded to $26.27 since the transaction was executed, but it remains more than 51% lower over the past six months. Company-level analysis has indicated that management has been active in repurchasing shares, and a separate fair-value assessment deems the stock to be slightly undervalued.
In parallel with the insider purchase, Varonis has announced a strategic acquisition: the company will buy AllTrue.ai for $125 million in cash. Varonis says the deal is intended to strengthen its capabilities in AI Trust, Risk, and Security Management.
Analyst responses to Varonis’ recent performance and outlook have been mixed. Cantor Fitzgerald kept an Overweight rating on the company but reduced its price target to $35, citing a modest outlook. That decision followed Varonis’ fourth-quarter 2025 results, which beat FactSet consensus estimates for revenue, annual recurring revenue (ARR), and operating income.
DA Davidson revised its stance positively, upgrading Varonis from Neutral to Buy and increasing its price target to $30. The firm had previously cut its price target to $25 from $40 in response to guidance for 2026 that management characterized as modest; Varonis projected 10% year-over-year ARR growth for 2026, below an expected 13% rate.
Piper Sandler reiterated an Overweight rating and highlighted improvements in execution, specifically pointing to stronger SaaS conversions and renewal rates. Together these analyst actions underline a complicated outlook for Varonis as it balances recent operational gains, strategic acquisitions, and cautious near-term guidance.
Context and implications
- Insider buying by a director signals direct capital commitment at the personal level and adds to recent management share repurchases.
- The $125 million cash purchase of AllTrue.ai is positioned as an effort to enhance Varonis’ AI-focused risk and security offerings.
- Analyst reactions vary: some firms have raised ratings or maintained Overweight stances while adjusting price targets downward in light of guidance that fell short of certain expectations.
This reporting is based on regulatory filings and company disclosures; available valuation assessments and analyst actions were reported alongside those items.