CVS Health Investor Meeting Proposal

Investing.com — A top hedge fund investor plans to meet with executives at CVS Health to discuss improving the company’s performance, as reported by The Wall Street Journal.

Citing sources familiar with the situation, the report indicates that the meeting may mark the beginning of Glenview Capital Management taking an activist role regarding CVS Health.

Shares of CVS Health (NYSE:CVS) increased in premarket trading following the news. Glenview’s founder, Larry Robbins, has invested significantly in CVS, owning about $700 million of his $2.5 billion hedge fund in CVS stock, representing approximately 1% of shares outstanding.

Robbins is expected to confer with CVS CEO Karen Lynch and other executives to discuss strategies for turning around the business, but a breakup of the firm is not anticipated, the WSJ reported.

A CVS Health spokesperson stated that the company maintains ongoing communication with investors but could not comment on specific engagements with firms or individuals.

Investment group Sachem Head Capital Management recently acquired a stake in CVS Health after a significant decline in the stock price. They owned 2.45 million shares or around 0.20% of CVS as of June 30.

Speculation persists that activist investors may push CVS Health for changes to enhance its stock price. This year, CVS Health’s shares have fallen over 24%.

In August, the company reduced its annual profit forecast to between $6.40 and $6.65 per share, a downward adjustment for the fourth time this year. CVS Health is also pursuing $2 billion in cost savings by optimizing operations and implementing AI and automation tools.

(Reuters contributed reporting.)