American Capital Management bought 137,233 shares of Varonis Systems for an estimated $5.76 million, as reported in a recent SEC filing on February 17, 2026. This increased their stake to 2.18% of their assets under management. Varonis shares were priced at $25.32, down 42.7% over the past year.

The fund’s top holdings after the filing include AVAV at $156.67 million, CYBR at $152.56 million, MEDP at $126.02 million, KTOS at $124.07 million, and IDXX at $122.96 million. Varonis Systems provides software solutions for data security and analytics to enterprise customers globally.

American Capital Management’s acquisition of Varonis shares during the fourth quarter of 2025 totaled approximately $5.75 million. The stock has faced challenges, with a 45% decline over the past year due to revenue misses and legal issues. The company aims to grow through AI data integrations and a shift to a higher-margin SaaS model.

Investors are divided on Varonis’ future potential, with hopes for a turnaround driven by AI integrations and revenue growth, while potential challenges include competition from AI agents and legal issues. The Motley Fool Stock Advisor team did not include Varonis in their top 10 stock picks, emphasizing the importance of thorough research and analysis before investing.

Read more at Yahoo Finance: Investment Manager Bets Big on Varonis Stock, According to Recent SEC Filing