Masimo (NASDAQ:MASI) Cut to Strong Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Masimo (NASDAQ:MASI) from a hold rating to a strong sell rating in a report published on Thursday, Zacks.com reports. The firm currently has $186.00 price objective on the medical equipment provider’s stock.

According to Zacks, “Masimo exited the second quarter on a strong note. However, contraction of both margins is a concern. Masimo’s Royalty and Other segment saw no contribution during the quarter. Further, the company faces fierce competition from MedTech bigwigs. On the bright side, the company continues to gain from its key Product segment, which witnessed solid growth in the quarter under review. The company’s non-invasive technology shipments also surged in the quarter. The recent launch of the Masimo SafetyNet, designed to help fight the coronavirus pandemic, buoys optimism. The outbreak has boosted demand for the company’s products among direct and OEM customers. The company recently saw a plethora of new product launches like Masimo Sleep and UniView: 60.Its shares have outperformed the industry over the past year.”

A number of other equities research analysts have also issued reports on the stock. ValuEngine lowered shares of Masimo from a buy rating to a hold rating in a report on Friday, May 1st. UBS Group increased their price objective on shares of Masimo from $207.00 to $245.00 and gave the company a buy rating in a report on Thursday, April 30th. Stifel Nicolaus increased their price objective on shares of Masimo from $245.00 to $255.00 and gave the company a buy rating in a report on Wednesday. BidaskClub raised shares of Masimo from a hold rating to a buy rating in a report on Wednesday, July 8th. Finally, Needham & Company LLC lowered shares of Masimo from a buy rating to a hold rating in a report on Monday, April 20th. One analyst has rated the stock with a sell rating, three have issued a hold rating and six have given a buy rating to the company. The company currently has an average rating of Buy and a consensus price target of $216.14.

Shares of Masimo stock traded up $0.02 during trading hours on Thursday, hitting $220.12. The company’s stock had a trading volume of 465,121 shares, compared to its average volume of 471,265. The company has a market cap of $12.10 billion, a PE ratio of 57.03, a PEG ratio of 4.11 and a beta of 0.92. The business has a 50 day moving average price of $228.29 and a two-hundred day moving average price of $202.59. Masimo has a 12-month low of $139.36 and a 12-month high of $258.00.

Masimo (NASDAQ:MASI) last posted its quarterly earnings results on Tuesday, July 28th. The medical equipment provider reported $0.85 EPS for the quarter, topping the Zacks’ consensus estimate of $0.78 by $0.07. Masimo had a return on equity of 16.49% and a net margin of 21.22%. The company had revenue of $301.00 million for the quarter, compared to analysts’ expectations of $290.09 million. During the same period in the previous year, the firm earned $0.76 EPS. The firm’s revenue was up 30.9% compared to the same quarter last year. As a group, analysts predict that Masimo will post 2.74 EPS for the current year.

In other Masimo news, insider Jon Coleman sold 1,250 shares of Masimo stock in a transaction on Monday, July 6th. The shares were sold at an average price of $235.00, for a total transaction of $293,750.00. Following the completion of the transaction, the insider now directly owns 13,715 shares of the company’s stock, valued at $3,223,025. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Adam Mikkelson sold 1,498 shares of Masimo stock in a transaction on Monday, June 8th. The stock was sold at an average price of $216.01, for a total transaction of $323,582.98. Following the transaction, the director now directly owns 2,802 shares of the company’s stock, valued at $605,260.02. The disclosure for this sale can be found here. Over the last three months, insiders sold 3,335 shares of company stock valued at $749,625. 11.50% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. C M Bidwell & Associates Ltd. purchased a new position in Masimo during the first quarter worth $25,000. Credit Agricole S A purchased a new position in Masimo during the first quarter worth $29,000. Altshuler Shaham Ltd boosted its stake in Masimo by 91.0% during the first quarter. Altshuler Shaham Ltd now owns 170 shares of the medical equipment provider’s stock worth $30,000 after buying an additional 81 shares during the period. GQ Asset Management LLC bought a new stake in shares of Masimo during the first quarter worth $32,000. Finally, Parallel Advisors LLC lifted its position in shares of Masimo by 272.1% during the second quarter. Parallel Advisors LLC now owns 160 shares of the medical equipment provider’s stock worth $36,000 after purchasing an additional 117 shares during the last quarter. 84.39% of the stock is owned by institutional investors.

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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