Key Takeaways
- • Cambiar Investors nearly doubled its Versant Media (VSNT) stake in the quarter ended June 30, adding 97% to 902,568 shares worth $33 million, per its 13F filed July 31.
- • David Einhorn's Greenlight Capital cut its Versant stake 37% to 1.92 million shares worth $69 million by June 30, per its 13F filed August 14, after buying in the first quarter at an average of $33.69 a share.
- • Versant closed Friday at $31.42, below Greenlight's average cost, and is down 13% since June 30.
- • Versant guides to $1.0 billion to $1.2 billion of free cash flow in 2026, roughly a quarter of its $4.37 billion market value, and trades at 6.4x forward earnings.
- • Versant reports third-quarter results on November 3, a key test of whether distribution revenue declines accelerate beyond the 6.3% second-quarter drop.
Summary
Two institutional holders took opposite positions in Versant Media (VSNT) during the second quarter, and the stock has since fallen below the price Greenlight paid. According to each fund's 13F filings, Cambiar Investors nearly doubled its stake in the quarter ended June 30, while Greenlight Capital, run by David Einhorn, reduced its holding by 37%. Cambiar's position of 902,568 shares, valued at $33 million, represented 1.4% of the fund's 13F stocks and was its 34th-largest holding.
Greenlight had argued for the stock in its first-quarter letter. It bought at an average of $33.69 a share, contending that selling by Comcast shareholders after the spinoff and index removals had left the shares below 4x adjusted EBITDA, and that cash flow could return nearly Versant's entire market value within four years. Greenlight's remaining 1.92 million shares were worth $69 million at June 30, implying about $36 a share. The filing does not disclose when or at what price the reduction occurred. At Friday's $31.42 close, the stock trades below Greenlight's cost.
Versant's August 6 report showed a shrinking business that continues to generate cash. Second-quarter revenue fell 3.8% to $1.64 billion, and distribution revenue from pay-TV networks dropped 6.3% to $954 million as subscribers left. Adjusted EBITDA declined 8.9% to $624 million as reported, though it rose 3% against last year's standalone figure. Net income fell 30% to $211 million. Management raised its 2026 outlook to $6.2 billion to $6.45 billion of revenue and $1.9 billion to $2.05 billion of adjusted EBITDA, and held free cash flow guidance at $1.0 billion to $1.2 billion. Capital returns include a $0.375 quarterly dividend, a completed $100 million accelerated buyback, and a second $100 million buyback due to finish in the third quarter.
Analysts expect normalized EPS of $4.11 in 2026, $6.48 in 2027 and $7.08 in 2028, according to TIKR's compilation of estimates, though few analysts publish forecasts that far out. At 6.4x forward earnings, Versant trades below its 7.0x average since listing and roughly half its 12.5x peak in May. The mean price target has risen from $33 at listing to $44, while the lowest target of $38 remains above the current price.
TIKR's analysis favors Cambiar's position, citing the low multiple and cash return program, though it acknowledges pay-TV erosion as the principal risk. Versant reports third-quarter results on November 3. Distribution revenue declining faster than 6.3% or free cash flow falling below the $1.0 billion floor would support Einhorn's trim. September 13F filings, due by November 16, will show whether either fund changed position.
Greenlight had argued for the stock in its first-quarter letter. It bought at an average of $33.69 a share, contending that selling by Comcast shareholders after the spinoff and index removals had left the shares below 4x adjusted EBITDA, and that cash flow could return nearly Versant's entire market value within four years. Greenlight's remaining 1.92 million shares were worth $69 million at June 30, implying about $36 a share. The filing does not disclose when or at what price the reduction occurred. At Friday's $31.42 close, the stock trades below Greenlight's cost.
Versant's August 6 report showed a shrinking business that continues to generate cash. Second-quarter revenue fell 3.8% to $1.64 billion, and distribution revenue from pay-TV networks dropped 6.3% to $954 million as subscribers left. Adjusted EBITDA declined 8.9% to $624 million as reported, though it rose 3% against last year's standalone figure. Net income fell 30% to $211 million. Management raised its 2026 outlook to $6.2 billion to $6.45 billion of revenue and $1.9 billion to $2.05 billion of adjusted EBITDA, and held free cash flow guidance at $1.0 billion to $1.2 billion. Capital returns include a $0.375 quarterly dividend, a completed $100 million accelerated buyback, and a second $100 million buyback due to finish in the third quarter.
Analysts expect normalized EPS of $4.11 in 2026, $6.48 in 2027 and $7.08 in 2028, according to TIKR's compilation of estimates, though few analysts publish forecasts that far out. At 6.4x forward earnings, Versant trades below its 7.0x average since listing and roughly half its 12.5x peak in May. The mean price target has risen from $33 at listing to $44, while the lowest target of $38 remains above the current price.
TIKR's analysis favors Cambiar's position, citing the low multiple and cash return program, though it acknowledges pay-TV erosion as the principal risk. Versant reports third-quarter results on November 3. Distribution revenue declining faster than 6.3% or free cash flow falling below the $1.0 billion floor would support Einhorn's trim. September 13F filings, due by November 16, will show whether either fund changed position.
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