Masimo Downgraded to Hold by Wall Street Zen Amid Mixed Ratings
Masimo Corporation (NASDAQ:MASI) received a downgrade from a “buy” rating to a “hold” rating by analysts at Wall Street Zen in a research report issued on August 5, 2023. This change reflects a shift in sentiment regarding the company’s stock performance, amid a backdrop of varying ratings from other financial institutions.
Several other analysts have expressed differing opinions on Masimo’s stock. Zacks Research upgraded the company from a “hold” to a “strong-buy” rating on September 3, 2023. In a separate report, Piper Sandler increased its price target for Masimo from $200.00 to $210.00, maintaining an “overweight” rating on August 6, 2023. Additionally, BTIG Research reaffirmed a “buy” rating with a price target of $198.00 on September 11, 2023. Collectively, one analyst rates the stock as a “strong buy,” five as “buy,” and one as “hold,” resulting in a consensus rating of “buy” and a price target of approximately $194.60, according to MarketBeat.
Recent Earnings Performance
Masimo recently announced its earnings results for the quarter ending August 5, 2023. The medical equipment provider reported earnings per share (EPS) of $1.33, surpassing analysts’ expectations by $0.11, as the consensus estimate was $1.22. The company’s revenue reached $370.90 million, exceeding projections of $368.65 million, marking a 7.7% increase compared to the same quarter in the previous year. The prior year’s EPS was $0.86. Despite these positive numbers, Masimo reported a negative net margin of 24.85%, although it achieved a return on equity of 26.54%. Looking forward, analysts project an average EPS of 4.1 for the current year.
Insider Transactions and Institutional Holdings
In related news, Director William R. Jellison acquired 3,000 shares of Masimo’s stock on August 11, 2023, at an average price of $145.98 per share. This transaction totaled approximately $437,940, increasing his ownership in the company to 4,790 shares, valued at around $699,244.20. Following this purchase, Jellison’s position in Masimo rose by 167.60%. Currently, company insiders hold about 16.90% of the stock.
Institutional investors have also been active, with several hedge funds adjusting their stakes in Masimo. For instance, Twin Tree Management LP established a new position worth approximately $29,000 in the first quarter. MAI Capital Management increased its holding by 176.7% in the second quarter, now owning 202 shares valued at $34,000. Similarly, Farther Finance Advisors LLC and Hilltop National Bank acquired new positions, with respective investments of around $35,000 and $37,000. Overall, institutional investors and hedge funds currently own about 85.96% of Masimo’s stock.
Masimo Corporation is known for developing and manufacturing patient monitoring technologies and automation solutions globally. The company specializes in advanced pulse oximetry and connectivity solutions, addressing the limitations of traditional monitoring methods.
As the market continues to react to these developments, investors are advised to stay informed about upcoming financial disclosures and analyst ratings.
