CVS Health Shares Rise on Report Over Glenview Capital Plans Push for Changes

By Sabela Ojea

Shares of CVS Health edged higher after The Wall Street Journal reported that a major hedge-fund investor on Monday would meet top executives of the healthcare company to propose ways to improve its operations.

The stock was up 1.8% at $62.46 in midday trading, after reaching a high of $63.60 a share earlier in the session. The stock has dropped 21% since the beginning of the year.

The slated meeting, between CVS and Glenview Capital Management, could be the beginning of an activist stance by the hedge fund, the Journal reported Sunday. citing people close to the matter.

Larry Robbins, founder of healthcare-focused Glenview, has established a large position in CVS and owns about 1% of its outstanding shares, the Journal reported. Robbins is expected to meet with Chief Executive Officer Karen Lynch and others to present ways to energize the company, the Journal reported.

A CVS spokesman told the Journal that the company "maintains a regular dialogue with the investment community as part of our robust shareholder and analyst engagement program. Beyond that, we cannot comment on engagement with specific firms or individuals."

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

September 30, 2024 12:43 ET (16:43 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.