Glenview plans activist stance in push for changes at CVS, WSJ reports

investing.com 29/09/2024 - 23:26 PM

Glenview Capital’s Position in CVS Health

(Reuters) – Healthcare-focused Glenview Capital Management has established a large position in CVS Health (NYSE:CVS) and will meet top executives at the struggling healthcare company on Monday to propose ways it can improve its operations, as reported by The Wall Street Journal on Sunday.

The hedge fund’s founder, Larry Robbins, plans for the potential start of an activist stance as CVS stocks amount to about $700 million of his $2.5 billion hedge fund. The report suggests this reflects Robbins’s belief in the company’s potential and confidence in getting executives to pursue a new direction.

CVS and Glenview did not immediately respond to a Reuters request for comment. Speculation has grown among fund managers that an activist investor may push CVS to make changes that would boost its share price.

Investment firm Sachem Head Capital Management built a new 0.2% stake in the company during the second quarter, as per a regulatory filing in August.

Earlier in August, CVS lowered its annual profit forecast to $6.40 to $6.65 per share from its prior estimation of at least $7.00, marking at least the fourth time the healthcare conglomerate has adjusted its outlook for the year. The company also announced a multi-year plan to save $2 billion in costs through measures including streamlining operations and utilizing artificial intelligence and automation across its business.




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