CVS Health Investment Updates

By Svea Herbst-Bayliss

NEW YORK (Reuters) – Three notable investment firms are betting on change at troubled healthcare giant CVS Health (NYSE:CVS), according to recent regulatory filings.

• Glenview Capital Management increased its stake by 31%, purchasing 2.8 million CVS shares and holding 0.95% of the company as of September 30.
• Sachem Head Capital Management, which expanded its CVS position in the second quarter, acquired over 1 million shares, raising its stake by 44%, making CVS its second-largest holding with 0.28% ownership by quarter’s end.
• Third Point, led by billionaire investor Daniel Loeb, initiated a new position in CVS with the purchase of 1.6 million shares, holding 0.13% as of the end of September.

These investments were made prior to CVS appointing David Joyner as CEO, replacing Karen Lynch, following a 32% stock price drop due to worsening financial forecasts.

Investor unease grew during the summer, prompting Glenview’s Larry Robbins to meet with CVS executives advocating for change, without calling for a company breakup. Analysts speculated potential demands for leadership changes, including replacing Lynch, but neither Third Point nor Sachem Head has publicly requested such actions.

Investors must file 13-F filings with the U.S. Securities and Exchange Commission to disclose their stock ownership by quarter-end, providing insight into potential activist targets.