Equities research analysts at Wall Street Zen have downgraded Masimo Corporation (NASDAQ: MASI) from a “buy” rating to a “hold” rating, as detailed in a report issued to clients on August 5, 2023. This shift reflects ongoing evaluations within the investment community regarding the company’s performance and future prospects.
Recent Analyst Ratings and Price Targets
In the wake of this downgrade, multiple analysts have offered contrasting assessments. Zacks Research upgraded Masimo from a “hold” to a “strong-buy” rating on September 3, while Piper Sandler increased their price target for the stock from $200.00 to $210.00, maintaining an “overweight” rating on August 6. Additionally, BTIG Research reaffirmed a “buy” rating and set a price target of $198.00 on September 11.
Currently, one analyst has designated the stock as a “strong buy,” five have rated it as a “buy,” and one has issued a “hold” rating. Data from MarketBeat indicates that the consensus rating for Masimo remains “buy,” with an average price target of $194.60.
Masimo’s Financial Performance
Masimo recently reported its earnings for the quarter ending on August 5. The company recorded earnings of $1.33 per share, exceeding analyst expectations of $1.22 by $0.11. Revenue for the quarter reached $370.90 million, surpassing forecasts of $368.65 million, and marking a 7.7% increase from the same period last year when earnings per share were $0.86.
Despite the positive earnings report, Masimo reported a negative net margin of 24.85% but achieved a return on equity of 26.54%. Analysts anticipate that the company will achieve an earnings per share (EPS) of 4.1 for the current year.
In a separate development, William R. Jellison, a director at Masimo, acquired 3,000 shares of the company on August 11 at an average price of $145.98 per share, totaling approximately $437,940.00. This transaction increased his holdings by 167.60%, bringing his total ownership to 4,790 shares, valued at around $699,244.20. The purchase was disclosed in a filing with the Securities and Exchange Commission.
Institutional Investment Trends
Recent trends among institutional investors indicate fluctuating interest in Masimo’s stock. Twin Tree Management LP entered a new position in the first quarter, investing approximately $29,000. Meanwhile, MAI Capital Management increased its stake by 176.7% in the second quarter, now holding 202 shares worth $34,000 after purchasing an additional 129 shares.
Other institutional movements include Farther Finance Advisors LLC, which grew its position by 128.9% during the first quarter, and Hilltop National Bank, which acquired a new position valued at around $37,000 in the second quarter. Overall, institutional investors and hedge funds currently own approximately 85.96% of Masimo’s stock.
Masimo Corporation is known for developing, manufacturing, and marketing a range of patient monitoring technologies and connectivity solutions globally. Its products include the innovative Masimo Signal Extraction Technology (SET) pulse oximetry, which addresses several limitations of traditional pulse oximetry.
As the market continues to assess Masimo’s trajectory, these recent developments reflect a dynamic landscape of analyst ratings and institutional investment that may influence investor sentiment moving forward.
