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Glenview Capital Issues Statement on CVS Health

1. CVS shares returned 25% since May 2024 amid turnaround efforts. 2. Leadership changes and board refreshment enhance governance and collaboration. 3. CVS exceeded earnings expectations, indicating operational recovery signs. 4. The company focuses on risk management and capital efficiency. 5. Glenview Capital remains committed despite rebalancing some holdings.

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Why Bullish?

The positive performance and operational improvements indicate strong upside potential for CVS.

How important is it?

The article highlights significant operational changes fostering long-term growth potential for CVS.

Why Long Term?

Sustained operational improvements and strategic management reform will benefit CVS over time.

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WBAUNHRAD
, /PRNewswire/ -- One year ago, we established a concentrated position in shares of CVS Health (NYSE: CVS). Since our purchases in May 2024, CVS shares have generated a total return of 25% reflecting initial progress in the long-term cultural and operational turnaround underway at the Company.  Our position size afforded us the scale necessary to constructively engage with the Board, Management, and fellow Shareholders in Q3 2024 on a multi-faceted performance improvement plan: Board Refreshment – The Board welcomed four new Directors including Larry Robbins, Glenview's CEO, and recently appointed a strong Lead Independent Director.  The entire Board is operating cooperatively and cohesively; Strengthening Culture and Leadership – CVS's leadership has undergone significant transformation under new CEO David Joyner's leadership, combining internal promotion with external recruitment while strengthening a customer-centric, accountable culture; Operational Intensity – CVS exceeded consensus earnings expectations over the past two quarters and has seen operating strength and early signs of recovery across its businesses; Risk Management – The Company has suspended material acquisitions, committed to deleveraging, strengthened its insurance reserve levels and established a clear path to sustainable returns on capital that will fuel future customer service and benefit stability; Portfolio Enhancement and Innovation – CVS has exited or transitioned certain lines of business where economics prevent a sustainable commitment to customers while leading the industry with transparent and value-added solutions to reduce cost and complexity; and Opportunistic Capital Deployment – In combination, CVS has marched closer to the time in which share repurchase can be both a responsible consideration and a creator of long-term shareholder value.  Following healthy Q1 results and increased annual guidance, Glenview reduced its overall holdings by 3.75 million shares consistent with our fund's diversification parameters and to create buying power for further unique opportunities in this volatile macro environment. With this rebalancing, CVS Health remains our largest position, and we have no plans for additional adjustments to our CVS holdings.  Our confidence in the near, medium, and long-term outlook for CVS remains strong.  We are grateful for the engagement and enthusiasm of the entire CVS Health team in the revitalization efforts well underway and are fully committed to making continued contributions to the vitality and long-term success of this iconic institution that strengthens the health of 185 million people. Together we grow. About Glenview CapitalIn its 25th year of operations, Glenview Capital is a long-term investment partnership focused on fundamental investing. Contact:Keegan Bales[email protected] SOURCE Glenview Capital WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In Also from this source

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