Sep 29 (Askume) – The Wall Street Journal On Sunday, healthcare-focused Glenview Capital Management will meet with troubled healthcare company CVS Health (CVS.N) on Monday and make recommendations to improve operations.
Hedge fund founder Larry Robbins owns a large stake in CVS, worth about $700 million of his $2.5 billion hedge fund, the report quoted a person familiar with the matter as saying.
CVS said it “maintains a regular dialogue with the investment community as part of its robust shareholder and analyst engagement program” and said it could not comment on work with specific companies or individuals.
Glenview did not immediately respond to a Askume request for comment.
Fund managers anticipate that aggressive investors could push CVS’s stock price higher by pressuring it to make changes.
In the second quarter, investment firm Sachem Head Capital ManagementIt acquired 0.2% of new shares in the company.
In early August, CVS cut its annual profit forecast by at least $7.00 per share to a range of $6.40 to $6.65, marking at least the fourth such cut since CVS revised down this year’s forecasts .
It also announced a multi-year plan to streamline operations across its businesses and save $2 billion in costs by using artificial intelligence and automation.
(This story has been revised in paragraph 7 to say the opinion has been revised three times, not four.)
