Glenview, an important shareholder of CVS.US, will meet with executives to push for reforms after the company repeatedly lowered its profit guidance.
1min read Zhitong Finance learned that media quoted insiders as saying that hedge fund Glenview Capital Management will meet CVS Health (CVS.US) executives on Monday to offer suggestions to improve operations. The meeting comes as Glenview, led by founder Larry Robbins, has invested about $700 million in CVS Health, a significant portion of his $2.5 billion hedge fund. Glenview currently holds about 1% of CVS Health's outstanding shares. CVS Health is valued at $77.2 billion.
The report quoted insiders as saying that Glenview's position indicates that Robbins is confident in the company's potential and believes he can lead the executives on a new path. The discussion is expected to focus on strategies to strengthen CVS Health's operations, especially considering recent challenges, including multiple profit cuts throughout the year.
Earlier, CVS Health lowered its full-year profit forecast, citing pressure in its insurance subsidiary Aetna's health benefits segment. The healthcare giant lowered its annual profit forecast to between $6.40 and $6.65 per share (the consensus was $6.54). Since the beginning of this year, CVS Health's stock price has fallen about 23%.