Durable Capital Partners LP Makes New Investment in Masimo Corporation $MASI

Key Points

• Durable Capital Partners LP acquired 1,125,619 shares of Masimo Corporation for approximately $187.5 million, representing 1.7% of their portfolio.
• Institutional investors own 85.96% of Masimo shares, with multiple firms increasing their positions during the first quarter.
• Masimo reported a 7.7% increase in revenue year-over-year, reaching $370.9 million, and earnings per share of $1.33, exceeding expectations.

Durable Capital Partners LP acquired a new stake in shares of Masimo Corporation (NASDAQ:MASI - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,125,619 shares of the medical equipment provider's stock, valued at approximately $187,528,000. Masimo makes up approximately 1.7% of Durable Capital Partners LP's portfolio, making the stock its 25th biggest holding. Durable Capital Partners LP owned about 2.08% of Masimo as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. GAMMA Investing LLC increased its holdings in shares of Masimo by 58.4% during the first quarter. GAMMA Investing LLC now owns 738 shares of the medical equipment provider's stock valued at $123,000 after acquiring an additional 272 shares in the last quarter. NBC Securities Inc. acquired a new position in shares of Masimo during the first quarter valued at about $61,000. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of Masimo by 2.9% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 4,039 shares of the medical equipment provider's stock valued at $673,000 after acquiring an additional 115 shares in the last quarter. UMB Bank n.a. increased its holdings in shares of Masimo by 134.0% during the first quarter. UMB Bank n.a. now owns 447 shares of the medical equipment provider's stock valued at $74,000 after acquiring an additional 256 shares in the last quarter. Finally, American Century Companies Inc. increased its holdings in shares of Masimo by 525.5% during the first quarter. American Century Companies Inc. now owns 79,176 shares of the medical equipment provider's stock valued at $13,191,000 after acquiring an additional 66,517 shares in the last quarter. Institutional investors and hedge funds own 85.96% of the company's stock.

Insider Activity

In other Masimo news, Director William R. Jellison bought 3,000 shares of the firm's stock in a transaction dated Monday, August 11th. The shares were purchased at an average price of $145.98 per share, for a total transaction of $437,940.00. Following the transaction, the director directly owned 4,790 shares of the company's stock, valued at approximately $699,244.20. This represents a 167.60% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 16.90% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. Piper Sandler increased their price target on shares of Masimo from $200.00 to $210.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Raymond James Financial cut their price target on shares of Masimo from $204.00 to $185.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th. Wells Fargo & Company cut their price target on shares of Masimo from $205.00 to $190.00 and set an "overweight" rating on the stock in a report on Wednesday, May 7th. BTIG Research reiterated a "buy" rating on shares of Masimo in a report on Thursday, August 14th. Finally, Wall Street Zen downgraded shares of Masimo from a "buy" rating to a "hold" rating in a report on Friday, May 30th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Masimo has a consensus rating of "Moderate Buy" and a consensus target price of $193.60.

Masimo Stock Performance

Masimo stock traded up $6.24 during mid-day trading on Thursday, hitting $143.01. The company had a trading volume of 709,748 shares, compared to its average volume of 633,740. The company has a current ratio of 2.14, a quick ratio of 1.61 and a debt-to-equity ratio of 0.57. Masimo Corporation has a 12-month low of $107.98 and a 12-month high of $194.88. The company's fifty day moving average is $154.83 and its 200-day moving average is $160.62. The company has a market capitalization of $7.77 billion, a price-to-earnings ratio of -16.79 and a beta of 1.23.

Masimo (NASDAQ:MASI - Get Free Report) last announced its earnings results on Tuesday, August 5th. The medical equipment provider reported $1.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.22 by $0.11. Masimo had a positive return on equity of 26.54% and a negative net margin of 24.85%.The firm had revenue of $370.90 million for the quarter, compared to analyst estimates of $368.65 million. During the same quarter last year, the firm posted $0.86 EPS. The business's revenue was up 7.7% on a year-over-year basis. Equities research analysts predict that Masimo Corporation will post 4.1 EPS for the current year.

Masimo Profile

Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry; Masimo rainbow SET platform, including rainbow SET Pulse CO-Oximetry products that allows noninvasive monitoring of carboxyhemoglobin, methemoglobin, hemoglobin concentration, fractional arterial oxygen saturation, oxygen content, pleth variability index, rainbow pleth variability index, respiration rate from the pleth, and oxygen reserve index, as well as acoustic respiration monitoring, SedLine brain function monitoring, NomoLine capnography and gas monitoring, and regional oximetry.