Investment Manager Bets Big on Varonis Stock, According to Recent SEC Filing
Key Points
Increased stake by 137,233 shares, an estimated $5.76 million trade based on quarterly average pricing
Quarter-end position value decreased by $29.34 million, reflecting both trading and price movement
Transaction represents a 0.25% change in reportable assets under management (AUM)
Post-trade holding: 1,509,039 shares valued at $49.50 million
Position now accounts for 2.18% of fund AUM, which places it outside the fund's top five holdings
On February 17, 2026, American Capital Management reported a buy of 137,233 shares of Varonis Systems (NASDAQ:VRNS) in a U.S. Securities and Exchange Commission (SEC) filing, an estimated $5.76 million trade based on quarterly average pricing.
What Happened
According to a recent SEC filing dated February 17, 2026, American Capital Management increased its position in Varonis Systems by 137,233 shares during the fourth quarter of 2025. The estimated transaction value, based on the average closing price for the quarter, was $5.76 million. The value of the position at quarter-end fell by $29.34 million, a figure that includes both the impact of additional shares and changes in share price.
What Else to Know
The fund increased its Varonis stake, which now represents 2.18% of its 13F reportable assets under management
Top holdings after the filing:
- NASDAQ: AVAV: $156.67 million (6.9% of AUM)
- NASDAQ: CYBR: $152.56 million (6.7% of AUM)
- NASDAQ: MEDP: $126.02 million (5.6% of AUM)
- NASDAQ: KTOS: $124.07 million (5.5% of AUM)
- NASDAQ: IDXX: $122.96 million (5.4% of AUM)
As of February 17, 2026, shares were priced at $25.32, down 42.7% over the past year, underperforming the S&P 500 by 54.5 percentage points
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $623.53 million |
| Net income (TTM) | ($129.32 million) |
| Price (as of market close 2/17/26) | $25.32 |
| One-year price change | (42.74%) |
Company Snapshot
- Varonis Systems, Inc. provides software solutions for data security, analytics, classification, and access management, with flagship products including DatAdvantage, DatAlert, and Data Classification Engine.
- The company generates revenue primarily through the sale of software licenses, subscriptions, and related maintenance and support services to enterprise customers.
- Varonis targets IT, security, and business professionals across large enterprises and organizations in North America, EMEA, and other international markets.
Varonis Systems, Inc. is a leading provider of data security and analytics software, serving over 2,400 employees and a global enterprise customer base. The company's strategy centers on enabling organizations to protect sensitive information, manage access, and comply with regulatory requirements through advanced, scalable solutions. Varonis leverages its proprietary technology and expertise to help clients address evolving data protection challenges in both on-premises and cloud environments.
What This Transaction Means for Investors
During the fourth quarter (the three months ending on Dec. 31, 2025), American Capital Management, an investment manager, acquired 137,000 shares of Varonis Systems, valued at approximately $5.75 million. Here’s what investors need to know about this transaction and Varonis Systems stock.
First off, by way of providing some context for this transaction, we should note that Varonis stock has endured a tough stretch. Shares are down about 45% over the last 12 months, with most of that decline occurring in October 2025 following the release of the company’s third-quarter earnings results. Reported revenue came in below analyst expectations. That, combined with weaker-than-expected forward guidance led to the big sell-off. Fourth-quarter revenue and earnings bounced back, however, coming in ahead of analyst estimates. Nevertheless, the stock has failed to rally and is down nearly 28% year-to-date.
Looking ahead, investors, including American Capital, are betting on the company’s AI data integrations. Varonis aims to become a crucial part of the AI workflow stack — auditing and securing underlying data within organizations’ workflows. This, along with the company’s shift to a higher-margin, cloud-based software-as-a-service (SaaS) model could drive revenue and earnings growth throughout 2026.
On the other hand, bears will point out that AI agents could potentially take market share from Varonis. In addition, the company faces legal headwinds due to class action investor lawsuits triggered by the company’s third quarter results and the accompanying collapse in its stock price.
In summary, American Capital Management has bet big on a turnaround at Varonis. The company’s stock has been battered, but there is both a bull and bear case for the stock going forward.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment, Kratos Defense & Security Solutions, Medpace, and Varonis Systems. The Motley Fool recommends Idexx Laboratories. The Motley Fool has a disclosure policy.
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