Masimo (NASDAQ:MASI) Trading Down 14.5% - Here's Why

Key Points

• Masimo Corporation's shares fell by 14.5% on Wednesday, trading as low as $142.63, significantly below its previous close of $163.88.
• Analysts have mixed ratings for Masimo, with two holding a "hold" rating and five assigning a "buy" rating; the average price target is set at $193.60.
• The company reported earnings of $1.33 per share for the latest quarter, exceeding analysts' expectations, while revenue increased by 7.7% year-over-year to $370.90 million.

Masimo Corporation (NASDAQ:MASI - Get Free Report) shares were down 14.5% on Wednesday . The stock traded as low as $142.63 and last traded at $140.14. Approximately 387,519 shares traded hands during mid-day trading, a decline of 36% from the average daily volume of 601,693 shares. The stock had previously closed at $163.88.

Analysts Set New Price Targets

Several equities research analysts have weighed in on MASI shares. BTIG Research restated a "buy" rating on shares of Masimo in a research note on Monday, July 14th. Needham & Company LLC restated a "hold" rating on shares of Masimo in a research note on Thursday, April 10th. Raymond James Financial lowered their target price on shares of Masimo from $204.00 to $185.00 and set an "outperform" rating for the company in a research note on Wednesday, May 7th. Wall Street Zen downgraded shares of Masimo from a "buy" rating to a "hold" rating in a research note on Friday, May 30th. Finally, Wells Fargo & Company lowered their target price on shares of Masimo from $205.00 to $190.00 and set an "overweight" rating for the company in a research note on Wednesday, May 7th. Two investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $193.60.

Masimo Stock Down 13.0%

The company has a market capitalization of $7.73 billion, a price-to-earnings ratio of -15.51 and a beta of 1.21. The business's 50-day moving average is $163.25 and its 200-day moving average is $165.18. The company has a quick ratio of 1.62, a current ratio of 2.17 and a debt-to-equity ratio of 0.67.

Masimo (NASDAQ:MASI - Get Free Report) last issued its earnings results on Tuesday, August 5th. The medical equipment provider reported $1.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.22 by $0.11. Masimo had a positive return on equity of 22.56% and a negative net margin of 25.06%. The business had revenue of $370.90 million during the quarter, compared to the consensus estimate of $368.65 million. During the same period last year, the company earned $0.86 EPS. The company's revenue for the quarter was up 7.7% on a year-over-year basis. As a group, equities analysts predict that Masimo Corporation will post 4.1 earnings per share for the current year.

Insider Buying and Selling at Masimo

In other news, COO Bilal Muhsin sold 10,000 shares of the stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $163.28, for a total value of $1,632,800.00. Following the completion of the sale, the chief operating officer owned 24,172 shares of the company's stock, valued at $3,946,804.16. This represents a 29.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 16.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Masimo

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Envestnet Asset Management Inc. grew its position in Masimo by 17.3% during the 4th quarter. Envestnet Asset Management Inc. now owns 31,107 shares of the medical equipment provider's stock worth $5,142,000 after purchasing an additional 4,579 shares during the last quarter. GAMMA Investing LLC grew its position in Masimo by 58.4% during the 1st quarter. GAMMA Investing LLC now owns 738 shares of the medical equipment provider's stock worth $123,000 after purchasing an additional 272 shares during the last quarter. Commonwealth Equity Services LLC purchased a new position in Masimo during the 4th quarter worth $354,000. NBC Securities Inc. purchased a new position in Masimo during the 1st quarter worth $61,000. Finally, Norges Bank purchased a new position in Masimo during the 4th quarter worth $5,520,000. 85.96% of the stock is currently 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.

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