5 Under-The-Radar Tech Stocks to Buy Now

4. Varonis Systems, Inc. (NASDAQ:VRNS)

Number of Hedge Fund Holders: 24

Varonis Systems, Inc. (NASDAQ:VRNS) is a New York-based company that offers software products and services to manage, analyze, and secure enterprise data. On August 1, Varonis Systems, Inc. (NASDAQ:VRNS) reported a revenue of $111.45 million, an increase of 26.0% year over year, outperforming estimates by $0.19 million. The annual recurring revenues grew 30% year-over-year to $426.3 million. For Q3 2022, the company expects revenues of $123 million to $125.5 million, versus a $124.35 million consensus, representing a year-over-year growth of 23% to 25%. The full-year 2022 guidance was raised too. 

Needham analyst Alex Henderson on August 2 maintained a Buy recommendation on Varonis Systems, Inc. (NASDAQ:VRNS) and lowered the price target on the shares to $35 from $75. The company posted a robust Q2 with revenues up 26% year-over-year, topping the Wall Street forecast despite stronger than expected foreign exchange headwinds, the exit from Russian operations, and a weakening Shekel, the analyst told investors in a research note. The pipeline is strong and upsell healthy even as management observed higher scrutiny for deals in Europe, the analyst contended.

According to Insider Monkey’s data, 24 hedge funds were long Varonis Systems, Inc. (NASDAQ:VRNS) at the end of June 2022, compared to 26 funds in the last quarter. Tremblant Capital is the leading position holder in the company, with 2.4 million shares worth about $71 million.