Glenview plans to take activist stance to push for changes at CVS, reports WSJ | The mighty 790 KFGO

(Reuters) – Healthcare-focused firm Glenview Capital Management has built a large position in CVS Health and will meet with top executives at the troubled healthcare company on Monday to suggest ways to improve its operations, the Wall Street Journal reported on Sunday .

The hedge fund’s founder, Larry Robbins, is planning the possible start of an activist stance as CVS accounts for about $700 million of his $2.5 billion hedge fund, the report added, citing a person familiar with the matter.

Glenview’s position is a sign of Robbins’ belief in the company’s potential and his confidence that he can lead executives to chart a new path, according to WSJ.

CVS and Glenview did not immediately respond to a Reuters request for comment.

Speculation is mounting among fund managers that an activist investor could emerge to pressure CVS into changes that would boost its stock price.

Investment firm Sachem Head Capital Management added a new 0.2% stake in the company in the second quarter, according to a regulatory filing in August.

In early August, CVS cut its annual profit forecast from at least $7.00 to between $6.40 and $6.65 per share. This was at least the fourth time the healthcare group cut its forecast for the year.

Additionally, the company announced a multi-year, $2 billion cost savings plan through measures such as streamlining its operations and deploying artificial intelligence and automation across the company.

(Reporting by Urvi Dugar; Editing by Leslie Adler and Marguerita Choy)