Masimo Corporation (NASDAQ: MASI) has been downgraded from a “buy” rating to a “hold” rating by analysts at Wall Street Zen, according to a report released on Saturday. This change comes amid a backdrop of varied evaluations from other analysts, indicating a complex outlook for the medical technology company.
In contrast to Wall Street Zen’s assessment, Zacks Research recently upgraded Masimo from a “hold” rating to a “strong-buy” rating on September 3, 2023. Meanwhile, Piper Sandler adjusted its price target for Masimo shares from $200.00 to $210.00, maintaining an “overweight” rating as of August 6, 2023. Additionally, BTIG Research reiterated a “buy” rating, setting a price target of $198.00 on September 11, 2023. Overall, the consensus among analysts is positive, with one rating classified as Strong Buy, five as Buy, and one as Hold. Data from MarketBeat indicates a consensus rating of “Buy” with an average price target of $194.60.
Masimo’s Recent Earnings Performance
Masimo recently announced earnings results for the quarter ending August 5, 2023. The company reported earnings per share (EPS) of $1.33, exceeding analysts’ expectations of $1.22 by $0.11. Revenue for the period was $370.90 million, surpassing the predicted $368.65 million. This represented a 7.7% increase in revenue compared to the same quarter the previous year, when Masimo reported an EPS of $0.86. Despite this growth, the company faced challenges with a negative net margin of 24.85% but maintained a positive return on equity at 26.54%.
Analysts predict that Masimo will achieve an EPS of 4.1 for the current year, reflecting continued optimism about the company’s financial outlook.
Insider Transactions and Institutional Investments
In other developments, Masimo Director William R. Jellison purchased 3,000 shares of the company’s stock on August 11, 2023, at an average price of $145.98 per share, amounting to a total investment of $437,940.00. Following this transaction, Jellison’s ownership in Masimo increased to 4,790 shares, valued at approximately $699,244.20. This acquisition marked a significant change, representing a 167.60% increase in his stake in the company. The transaction has been disclosed in a filing with the Securities and Exchange Commission.
The institutional investment landscape for Masimo also shows shifts, with several hedge funds and institutional investors adjusting their positions. Twin Tree Management LP established a new position in Masimo valued at about $29,000 during the first quarter. Similarly, MAI Capital Management expanded its stake by 176.7% in the second quarter, now holding 202 shares worth $34,000. Other notable increases include Farther Finance Advisors LLC, which grew its position by 128.9% and Hilltop National Bank, which acquired a new position valued at approximately $37,000. Overall, institutional investors and hedge funds now own 85.96% of Masimo’s stock.
Masimo Corporation continues to be a prominent player in the medical equipment sector, specializing in patient monitoring technologies and connectivity solutions. The company’s innovations, including the Masimo Signal Extraction Technology (SET) and the rainbow SET platform, address significant challenges in conventional pulse oximetry. With ongoing analyst interest and fluctuations in ratings, Masimo remains a closely watched stock in the healthcare market.