Activist hedge fund Glenview Capital has reduced its stake in CVS Health after the insurer reported robust first-quarter results and a raised 2025 earnings outlook, the firm disclosed on Tuesday, according to a report by Reuters.
The move follows a 25% total return since Glenview initiated its position last year, signalling that the hedge fund sees meaningful progress in the healthcare conglomerate’s turnaround efforts. Glenview, led by Larry Robbins, cut its holdings by 3.75 million shares, trimming its stake from nearly 12 million, according to regulatory filings.
The exit comes just days after CVS beat consensus earnings estimates and lifted full-year guidance, crediting lower-than-expected medical cost trends and early progress on its restructuring efforts.
Glenview has been a key activist voice in the CVS narrative, pressuring the company to improve operational performance and shareholder returns after repeated earnings shortfalls tied to rising costs in its insurance arm.
Last October, CVS replaced former CEO Karen Lynch with company veteran David Joyner. The following month, Glenview secured board representation, with Robbins and three other directors joining the board – a clear sign of influence.
Since taking the helm, Joyner has announced significant cost-reduction initiatives and reorganised the C-suite to stabilise the business amid one of the most turbulent periods in the firm’s history.
Despite paring back its position, Glenview emphasised continued support for the company’s strategic direction.
“Our confidence in the near, medium and long-term outlook for CVS remains strong,” the firm said in a statement, noting no further changes to its holdings are planned at this time.
CVS now expects full-year 2025 earnings of $6.00 to $6.20 per share, up from previous guidance of $5.75 to $6.00. The company’s Q1 performance, buoyed by lower medical utilisation, exceeded Wall Street forecasts.
