Masimo (NASDAQ:MASI) Upgraded by Zacks Research to "Strong-Buy" Rating

Key Points

• Zacks Research has upgraded Masimo's stock rating from "hold" to a "strong-buy", indicating a positive outlook among analysts.
• Masimo reported a quarterly EPS of $1.33, exceeding expectations and showing a 7.7% year-over-year increase in revenue.
• Insider trading activity includes Director William R. Jellison purchasing 3,000 shares, increasing his ownership by 167.6% and demonstrating confidence in the company's future.

Masimo (NASDAQ:MASI - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Wednesday, September 3rd,Zacks.com reports.

Several other equities research analysts have also commented on MASI. Piper Sandler upped their price objective on Masimo from $200.00 to $210.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 6th. Wall Street Zen lowered Masimo from a "buy" rating to a "hold" rating in a research report on Friday, May 30th. Raymond James Financial decreased their target price on Masimo from $204.00 to $185.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 7th. BTIG Research reiterated a "buy" rating on shares of Masimo in a research report on Thursday, August 14th. Finally, Wells Fargo & Company decreased their target price on Masimo from $205.00 to $190.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 7th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $193.60.

Masimo Stock Performance

MASI stock traded down $2.39 during trading on Wednesday, reaching $145.73. The company had a trading volume of 85,521 shares, compared to its average volume of 629,856. The firm has a 50-day simple moving average of $153.60 and a 200-day simple moving average of $159.91. The company has a market cap of $7.92 billion, a price-to-earnings ratio of -17.12 and a beta of 1.23. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.61 and a current ratio of 2.14. Masimo has a twelve month low of $111.03 and a twelve month high of $194.88.

Masimo (NASDAQ:MASI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The medical equipment provider reported $1.33 earnings per share for the quarter, topping the consensus estimate of $1.22 by $0.11. Masimo had a negative net margin of 24.85% and a positive return on equity of 26.54%. The company had revenue of $370.90 million for the quarter, compared to the consensus estimate of $368.65 million. During the same quarter in the prior year, the company earned $0.86 EPS. Masimo's quarterly revenue was up 7.7% on a year-over-year basis. As a group, sell-side analysts expect that Masimo will post 4.1 earnings per share for the current year.

Insider Buying and Selling

In other news, Director William R. Jellison bought 3,000 shares of Masimo stock in a transaction on Monday, August 11th. The shares were bought at an average cost of $145.98 per share, with a total value of $437,940.00. Following the completion of the purchase, the director directly owned 4,790 shares of the company's stock, valued at approximately $699,244.20. This trade represents a 167.60% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 16.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Masimo

Institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC grew its position in Masimo by 58.4% in the 1st 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 Masimo in the 1st quarter valued at about $61,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in Masimo by 2.9% in the 1st 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. grew its position in Masimo by 134.0% in the 1st 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. grew its position in Masimo by 525.5% in the 1st 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. 85.96% of the stock is owned by institutional investors and hedge funds.

About Masimo

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.