What Happened?
Shares of data protection and security software company Varonis (NASDAQ: VRNS) jumped 3.3% in the morning session after Wells Fargo raised its price target on the company's stock to $51 from $46, while maintaining an Equal Weight rating. The bank's analyst noted that the Data Protection market is gaining momentum, partly due to the rollout of Agentic AI technologies, which could benefit Varonis in the long term. Wells Fargo indicated that after speaking with larger resellers, it had developed "a more constructive view on the outlook for Varonis.".
After the initial pop the shares cooled down to $52.66, up 2.6% from previous close.
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What Is The Market Telling Us
Varonis’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock dropped 4.1% on the news that the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
This move was far more than a typical trade dispute; it targeted the United States' largest and most deeply integrated trading partner. Canada is not merely a neighbor but a critical component of North American supply chains, particularly in sectors like automotive, energy, and critical minerals.
This move also sparked concerns about potential retaliatory actions and a wider impact on the North American economy, leading to a risk-off sentiment among investors. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened lower, pulling back from recent record highs and heading for their first weekly loss in three weeks.
Varonis is up 18.8% since the beginning of the year, but at $52.66 per share, it is still trading 12.2% below its 52-week high of $59.98 from October 2024. Investors who bought $1,000 worth of Varonis’s shares 5 years ago would now be looking at an investment worth $1,479.
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