Masimo (MASI) Lowered to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Masimo (NASDAQ:MASI) from a hold rating to a sell rating in a research report sent to investors on Thursday.

According to Zacks, “Masimo’s Royalty and Other segment have been sluggish in recent times. Furthermore, the company faces fierce competition from the MedTech bigwigs. The stock is overvalued at the moment. On the positive side, the company’s key Product revenue segment has been witnessing strong growth. The company is also seeing strong demand for its SET pulse oximetry products and rainbow platform. Management is optimistic about Masimo’s alliance with Philips. Increased R&D expenses imply greater focus on innovation. Management is also hopeful about receiving FDA clearance for ORi. In fact, the company recently received FDA approval for RD SET sensors with Masimo Measure-through Motion and Low Perfusion SET pulse oximetry. A raised guidance for 2018 paints a bright picture. Masimo outperformed its industry in a year’s time.”

Other analysts have also recently issued research reports about the stock. Needham & Company LLC began coverage on shares of Masimo in a research report on Friday, September 14th. They set a buy rating on the stock. Stifel Nicolaus increased their price target on shares of Masimo from $112.00 to $145.00 and gave the stock a buy rating in a research report on Tuesday, October 2nd. Piper Jaffray Companies increased their price target on shares of Masimo to $120.00 and gave the stock a neutral rating in a research report on Thursday, November 1st. BidaskClub cut shares of Masimo from a strong-buy rating to a buy rating in a research report on Saturday, November 3rd. Finally, UBS Group started coverage on shares of Masimo in a research report on Tuesday, November 27th. They set a buy rating and a $137.00 price target on the stock. One analyst has rated the stock with a sell rating and eight have assigned a buy rating to the company’s stock. The company has an average rating of Buy and a consensus target price of $119.00.

NASDAQ MASI opened at $113.38 on Thursday. Masimo has a 12 month low of $80.69 and a 12 month high of $126.89. The stock has a market capitalization of $5.94 billion, a price-to-earnings ratio of 46.28, a P/E/G ratio of 2.36 and a beta of 0.99.

Masimo (NASDAQ:MASI) last posted its earnings results on Wednesday, October 31st. The medical equipment provider reported $0.71 EPS for the quarter, beating the Zacks’ consensus estimate of $0.69 by $0.02. Masimo had a net margin of 17.08% and a return on equity of 20.29%. The company had revenue of $210.58 million for the quarter, compared to analysts’ expectations of $207.62 million. During the same quarter in the prior year, the company posted $0.56 earnings per share. Masimo’s revenue for the quarter was up 8.9% compared to the same quarter last year. Equities research analysts forecast that Masimo will post 2.92 EPS for the current fiscal year.

In other Masimo news, Director Sanford Fitch sold 2,000 shares of the stock in a transaction that occurred on Monday, December 3rd. The shares were sold at an average price of $110.90, for a total value of $221,800.00. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, COO Anand Sampath sold 30,000 shares of the stock in a transaction that occurred on Wednesday, November 28th. The shares were sold at an average price of $110.00, for a total transaction of $3,300,000.00. The disclosure for this sale can be found here. Insiders have sold 34,000 shares of company stock worth $3,748,080 over the last 90 days. Insiders own 12.60% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the business. BlackRock Inc. increased its stake in Masimo by 23.1% in the third quarter. BlackRock Inc. now owns 8,311,900 shares of the medical equipment provider’s stock valued at $1,035,164,000 after purchasing an additional 1,562,019 shares during the last quarter. Vanguard Group Inc. increased its stake in Masimo by 2.7% in the third quarter. Vanguard Group Inc. now owns 4,147,708 shares of the medical equipment provider’s stock valued at $516,556,000 after purchasing an additional 109,065 shares during the last quarter. Vanguard Group Inc grew its position in shares of Masimo by 2.7% during the third quarter. Vanguard Group Inc now owns 4,147,708 shares of the medical equipment provider’s stock worth $516,556,000 after acquiring an additional 109,065 shares during the last quarter. FMR LLC grew its position in shares of Masimo by 81.2% during the third quarter. FMR LLC now owns 3,301,975 shares of the medical equipment provider’s stock worth $411,229,000 after acquiring an additional 1,479,981 shares during the last quarter. Finally, American Century Companies Inc. grew its position in shares of Masimo by 932.6% during the third quarter. American Century Companies Inc. now owns 850,436 shares of the medical equipment provider’s stock worth $105,913,000 after acquiring an additional 768,078 shares during the last quarter. Institutional investors own 82.05% of the company’s stock.

About Masimo

Masimo Corporation, a medical technology company, develops, manufactures, and markets noninvasive monitoring technologies 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.

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