Masimo (MASI) Rating 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 report published 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 research analysts have also issued reports about the stock. Needham & Company LLC assumed coverage on shares of Masimo in a report on Friday, September 14th. They issued a buy rating for the company. BidaskClub raised shares of Masimo from a hold rating to a buy rating in a report on Thursday, December 13th. Piper Jaffray Companies raised shares of Masimo from a neutral rating to an overweight rating and set a $120.00 price objective for the company in a research note on Wednesday, December 19th. UBS Group assumed coverage on shares of Masimo in a research note on Tuesday, November 27th. They set a buy rating and a $137.00 price objective for the company. Finally, Stifel Nicolaus lifted their price objective on shares of Masimo from $112.00 to $145.00 and gave the stock a buy rating in a research note on Tuesday, October 2nd. One investment analyst has rated the stock with a sell rating and eight have issued a buy rating to the stock. Masimo presently has a consensus rating of Buy and an average price target of $119.00.

Shares of MASI stock traded up $0.22 on Thursday, reaching $113.38. The company’s stock had a trading volume of 390,300 shares, compared to its average volume of 460,712. Masimo has a 1 year low of $80.69 and a 1 year high of $126.89. The firm has a market cap of $5.94 billion, a PE ratio of 46.16, a price-to-earnings-growth 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 earnings per share for the quarter, beating analysts’ consensus estimates of $0.69 by $0.02. Masimo had a net margin of 17.08% and a return on equity of 20.29%. The firm had revenue of $210.58 million during the quarter, compared to analyst estimates of $207.62 million. During the same period last year, the firm posted $0.56 earnings per share. Masimo’s revenue for the quarter was up 8.9% compared to the same quarter last year. As a group, research analysts anticipate that Masimo will post 2.92 EPS for the current fiscal year.

In other news, COO Anand Sampath sold 30,000 shares of Masimo stock in a transaction on Wednesday, November 28th. The stock was sold at an average price of $110.00, for a total transaction of $3,300,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Sanford Fitch sold 2,000 shares of Masimo stock in a transaction on Thursday, November 1st. The stock was sold at an average price of $113.14, for a total value of $226,280.00. The disclosure for this sale can be found here. Insiders have sold 34,000 shares of company stock valued at $3,748,080 over the last ninety days. 12.60% of the stock is owned by insiders.

Large investors have recently added to or reduced their stakes in the company. First Hawaiian Bank lifted its position in shares of Masimo by 170.0% during the fourth quarter. First Hawaiian Bank now owns 1,080 shares of the medical equipment provider’s stock worth $116,000 after purchasing an additional 680 shares during the last quarter. Koshinski Asset Management Inc. bought a new stake in shares of Masimo during the third quarter worth $201,000. Ibex Investors LLC bought a new stake in shares of Masimo during the third quarter worth $208,000. CIBC Asset Management Inc bought a new stake in shares of Masimo during the third quarter worth $227,000. Finally, Parametrica Management Ltd bought a new stake in shares of Masimo during the third quarter worth $234,000. Institutional investors and hedge funds own 82.05% of the company’s stock.

Masimo Company Profile

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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