Equities research analysts at Wall Street Zen have downgraded Masimo Corporation (NASDAQ: MASI) from a “buy” rating to a “hold” rating in a report released on Saturday. This shift comes amidst a backdrop of varied analyses from other financial institutions regarding the medical equipment provider’s stock.
In a contrasting move, Zacks Research upgraded Masimo from a “hold” to a “strong-buy” rating on September 3, 2023. Piper Sandler also raised their price target from $200.00 to $210.00, maintaining an “overweight” rating as of August 6, 2023. Additionally, BTIG Research reaffirmed a “buy” rating and set a price target of $198.00 in their research note dated September 11, 2023. Currently, one investment analyst has assigned a Strong Buy rating, while five others have rated the stock as a Buy, and one as a Hold. According to data from MarketBeat, Masimo holds a consensus rating of “Buy” and a consensus price target of $194.60.
Masimo Financial Performance and Earnings
Masimo announced its earnings results on August 5, 2023, reporting an earnings per share (EPS) of $1.33 for the quarter. This performance exceeded analysts’ expectations of $1.22 by $0.11. The company generated revenues of $370.90 million during this quarter, surpassing forecasts of $368.65 million. Year-on-year, revenue increased by 7.7%, compared to $0.86 EPS in the same quarter the previous year. However, the company also reported a negative net margin of 24.85% and a positive return on equity of 26.54%. Analysts predict an average EPS of 4.1 for the current fiscal year.
Insider Transactions and Institutional Activity
In related news, Director William R. Jellison acquired 3,000 shares of Masimo stock on August 11, 2023, at an average price of $145.98 per share, amounting to a total investment of $437,940. Following this purchase, Jellison now directly owns 4,790 shares valued at approximately $699,244.20, marking a significant 167.60% increase in his position. This transaction has been disclosed in a filing with the Securities and Exchange Commission.
Additionally, institutional investors have been adjusting their stakes in Masimo. Twin Tree Management LP acquired a new position worth about $29,000 in the first quarter. MAI Capital Management increased its stake by 176.7% during the second quarter, bringing its holdings to 202 shares valued at $34,000 after purchasing an additional 129 shares. Other firms, such as Farther Finance Advisors LLC and Hilltop National Bank, have also increased their positions, while institutional investors and hedge funds now hold approximately 85.96% of the company’s stock.
Masimo Corporation specializes in developing, manufacturing, and marketing advanced patient monitoring technologies and connectivity solutions globally. The company’s product offerings include the innovative Masimo Signal Extraction Technology (SET) for pulse oximetry, which addresses limitations in traditional methods, as well as its rainbow SET platform for comprehensive non-invasive monitoring.
As of now, the market continues to watch Masimo closely, with ongoing evaluations from analysts and changes in insider and institutional holdings indicating a dynamic financial landscape for the company.
