Watch Glenview Capital to push CVS Health to make changes – Wall Street Journal By Investing.com Wall Street News

Investing.com — A most sensible hedge fund investor is making plans to meet with most sensible executives at CVS Health to suggest techniques for the ill healthcare crew to bolster its efficiency, in accordance to The Wall Street Journal.

Citing other folks shut to the subject, the paper stated the assembly may well be the beginning of the hedge fund, Glenview Capital Management, doubtlessly taking an activist stance in its dealings with CVS Health.

Shares in CVS Health (NYSE:) rose in premarket US buying and selling following the file.

Glenview’s founder Larry Robbins has constructed a big stake within the corporate, the WSJ reported. CVS quantities to kind of $700 million of Robbins’ $2.5 billion hedge fund, it stated, including that Glenview owns about 1% in CVS’s stocks remarkable.

Robbins is expected to meet with CVS leader government Karen Lynch and others to speak about techniques to flip across the industry, even if no longer a get a divorce of the company, the WSJ stated.

A spokesperson for CVS Health advised Investing.com that the corporate “maintains a regular dialogue with the investment community as part of our robust shareholder and analyst engagement program.”

“Beyond that,” the spokesperson stated, “we cannot comment on engagement with specific firms or individuals.”

Investment crew Sachem Head Capital Management additionally in the past took a recent stake in CVS Health in the second one quarter after a steep drop in its proportion value, Reuters reported in August.

Sachem Head owned 2.45 million stocks or about 0.20% of the corporate as of June 30, in accordance to regulatory submitting cited by way of the scoop company.

Reuters added that there was larger hypothesis that an activist investor may push CVS Health to make changes in a bid to spice up its proportion value. So some distance this 12 months, the inventory has shed greater than 24% of its worth.

In August, CVS Health slashed its complete-12 months benefit forecast to $6.40 to $6.65 in keeping with proportion, down from a previous outlook of a minimum of $7.00. It was once a minimum of the fourth time the company has reduced its steering this 12 months.

CVS Health has additionally laid out plans to succeed in $2 billion in value financial savings by way of streamlining its operations and using rising equipment like synthetic intelligence and automation.

(Reuters contributed reporting.)