Activist investor Glenview Capital is reducing its stake in healthcare giant CVS Health following its first-quarter earnings results.
Glenview said in a statement on Wednesday that it reduced its stake in the company by 3.75 million shares "following healthy Q1 results and increased annual guidance."
"With this rebalancing, CVS Health remains our largest position, and we have no plans for additional adjustments to our CVS holdings," it said in the statement. "Our confidence in the near, medium, and long-term outlook for CVS remains strong."
Glenview said its shares in CVS had generated a 25% return since it made purchases in May 2024. Its role as a major investor gave it the scale needed to have key conversations with leaders and shareholders beginning in the third quarter of 2025, driving CVS' multifaceted improvement efforts.
The company has been focused on righting the ship after a rough series of quarterly earnings releases. Glenview highlighted several steps CVS has taken that made it confident things were headed in the right direction.
For one, CVS agreed to a board refresh that added four new members, including Glenview CEO Larry Robbins. The investor also credited newly instated CEO David Joyner with strengthening company culture and leadership.
CVS has also focused on enhancing its portfolio and mitigating financial risks. It's also made strides toward a scenario "in which share repurchase can be both a responsible consideration and a creator of long-term shareholder value," Glenview said.
Two straight quarters in which the company showed signs of recovery were also key to Glenview's decision, per the statement.
"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," Glenview said.