Naya Capital Initiates Position in Masimo with 1.6 Million Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Should l Buy MASI?
Source: NASDAQ.COM
- New Position: Naya Capital Management initiated a position in Masimo (NASDAQ:MASI) by purchasing approximately 1.6 million shares valued at nearly $203 million, representing 15.3% of the fund's 13F assets under management.
- Portfolio Overview: Naya Capital's portfolio consists of only five reportable holdings totaling over $1.3 billion, with Masimo being the fifth-largest position, indicating a significant commitment to the company.
- Market Performance: Despite Masimo's shares declining by 2.6% over the past year, they surged by over 34% on February 17 following Danaher's announcement to acquire the company for $9.9 billion, raising the stock price from $130.15 to $174.69.
- Investment Risk Advisory: While Naya Capital's timing appears fortunate, analysts caution that there is considerable downside risk if the acquisition deal fails, suggesting investors should proceed with caution before buying Masimo shares.
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Analyst Views on MASI
Wall Street analysts forecast MASI stock price to rise
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 175.610
Low
162.00
Averages
188.40
High
210.00
Current: 175.610
Low
162.00
Averages
188.40
High
210.00
About MASI
Masimo Corporation is a global medical technology company that develops and produces a wide range of monitoring technologies, including measurements, sensors, patient monitors, automation and connectivity solutions. The Company’s healthcare products and patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use or reusable sensors, software and/or cables. It primarily sells its healthcare products to hospitals, emergency medical service providers, home care providers, physician offices, veterinarians, long-term care facilities. Its measurement technologies include Measure-through Motion and Low Perfusion pulse oximetry, known as Masimo Signal Extraction Technology (SET) pulse oximetry, and advanced rainbow Pulse CO-Oximetry parameters such as noninvasive hemoglobin (SpHb), alongside many other modalities, including brain function monitoring, hemodynamic monitoring, regional oximetry, capnography and gas monitoring, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investigation into Masimo Corporation's Proposed Sale to Danaher Corporation
- Acquisition Investigation: Former Louisiana Attorney General Charles C. Foti and his law firm Kahn Swick & Foti are investigating the proposed sale of Masimo Corporation to Danaher Corporation for $180.00 per share, aiming to assess whether this transaction undervalues Masimo.
- Shareholder Rights Concern: The investigation focuses on whether Masimo shareholders are receiving adequate compensation, and those who believe the transaction undervalues the company can contact KSF to discuss their legal rights and express potential objections to the sale.
- Legal Consultation Access: KSF offers no-obligation legal consultations, allowing shareholders to reach out via email or phone to KSF Managing Partner Lewis S. Kahn, ensuring their rights are protected and gaining insights into the legal implications of the transaction.
- Company Background Insight: Masimo Corporation holds a significant position in the medical device sector, and if the acquisition proceeds, it could have profound implications for its future development and market competitiveness, warranting close attention from investors and market participants.
See More
Naya Capital Acquires Significant Stake in Masimo
- New Investment Disclosure: Naya Capital Management UK Ltd disclosed on February 18 that it acquired nearly 1.6 million shares of Masimo, valued at approximately $203 million, indicating strong confidence in the company.
- Asset Allocation Insight: This investment represents 15.3% of Naya Capital's 13F assets under management, positioning Masimo as one of only five reportable holdings, highlighting its significance in the firm's portfolio.
- Market Performance Comparison: Despite Masimo's stock declining 2.6% over the past year, it surged over 34% on February 17 after Danaher announced a $9.9 billion acquisition at $180 per share, showcasing a dramatic price increase from $130.15.
- Investment Risk Advisory: While Naya Capital's timing appears fortuitous, the uncertainty surrounding the acquisition poses significant downside risks for investors, suggesting a cautious approach and potential recommendation to hold off on purchasing shares.
See More
Naya Capital Initiates Position in Masimo with 1.6 Million Shares
- New Position: Naya Capital Management initiated a position in Masimo (NASDAQ:MASI) by purchasing approximately 1.6 million shares valued at nearly $203 million, representing 15.3% of the fund's 13F assets under management.
- Portfolio Overview: Naya Capital's portfolio consists of only five reportable holdings totaling over $1.3 billion, with Masimo being the fifth-largest position, indicating a significant commitment to the company.
- Market Performance: Despite Masimo's shares declining by 2.6% over the past year, they surged by over 34% on February 17 following Danaher's announcement to acquire the company for $9.9 billion, raising the stock price from $130.15 to $174.69.
- Investment Risk Advisory: While Naya Capital's timing appears fortunate, analysts caution that there is considerable downside risk if the acquisition deal fails, suggesting investors should proceed with caution before buying Masimo shares.
See More
Valuation Challenges Intensify for Tech Stocks
- Tech Stock Sell-off: A wave of selling in technology shares is occurring as investors express uncertainty about their future value, particularly as price-to-earnings ratios shrink dramatically, which negatively impacts overall investment sentiment.
- Danaher-Masimo Acquisition Risks: Danaher is acquiring Masimo at nearly 25 times next year's earnings, despite the latter's inability to justify its multiple over the years, raising concerns that could adversely affect Danaher's stock performance.
- CrowdStrike-Microsoft Partnership: CrowdStrike's Falcon platform is now available on the Microsoft Marketplace, which could significantly boost revenue; however, its current P/E ratio of 85 has led to a tepid market reaction, reflecting investor anxiety over high valuations.
- ServiceNow Management Confidence Issues: Despite ServiceNow's announcement of a $5 billion stock buyback and intentions from executives to buy shares, the stock price still fell, indicating market skepticism about its growth prospects amid intensifying AI competition.
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Danaher Acquires Masimo: Key Transaction Details
- Transaction Background: The deal follows a proxy contest led by activist hedge fund Politan Capital Management, resulting in the removal of Masimo founder Joe Kiani as board chair, who subsequently stepped down as CEO but retains about a 5% stake, indicating significant governance changes.
- Valuation Metrics: The transaction is valued at approximately 18x estimated 2027 EBITDA, or 15x including expected annual synergies, reflecting Danaher's confidence in Masimo's future profitability and potential growth in the diagnostics sector.
- Financial Expectations: Danaher anticipates Masimo will generate over $530 million in EBITDA by 2027, with more than $125 million in annual cost synergies and over $50 million in annual revenue synergies expected by the fifth year post-acquisition, showcasing a strong financial outlook.
- Market Reaction: Danaher’s stock rose 0.55% to $207.50 in the latest trading session, indicating a positive market response to the acquisition, with analysts suggesting that the deal enhances Danaher’s portfolio of high-quality assets.
See More
Jim Cramer's Trust Portfolio Trading Update
- Capital One Increase: Acquiring 30 shares of Capital One Financial at approximately $208 each raises the weighting in Jim Cramer's Trust to 3.05% from 2.9%, increasing total shares to 580, indicating confidence in the company's growth potential despite risks from proposed interest rate caps.
- Danaher Reduction: Selling 200 shares of Danaher at around $207 each decreases the weighting from 2.1% to 1.05%, realizing a disappointing 9% loss, reflecting concerns over its acquisition of pulse oximetry leader Masimo and a preference for biotech-focused acquisitions.
- Texas Roadhouse Sale: Offloading 200 shares of Texas Roadhouse at about $189 each reduces the weighting to 0.95% from 1.9%, achieving an 8% gain, yet concerns over persistent beef inflation suggest potential earnings misses in upcoming reports.
- Strategic Portfolio Adjustment: By reducing positions in underperforming stocks, Jim Cramer's Trust aims to sidestep potential earnings shortfalls, demonstrating a cautious approach to earnings expectations in the current market climate.
See More
Investigation into Masimo Corporation's Proposed Sale to Danaher Corporation
- Acquisition Investigation: Former Louisiana Attorney General Charles C. Foti and his law firm Kahn Swick & Foti are investigating the proposed sale of Masimo Corporation to Danaher Corporation for $180.00 per share, aiming to assess whether this transaction undervalues Masimo.
- Shareholder Rights Concern: The investigation focuses on whether Masimo shareholders are receiving adequate compensation, and those who believe the transaction undervalues the company can contact KSF to discuss their legal rights and express potential objections to the sale.
- Legal Consultation Access: KSF offers no-obligation legal consultations, allowing shareholders to reach out via email or phone to KSF Managing Partner Lewis S. Kahn, ensuring their rights are protected and gaining insights into the legal implications of the transaction.
- Company Background Insight: Masimo Corporation holds a significant position in the medical device sector, and if the acquisition proceeds, it could have profound implications for its future development and market competitiveness, warranting close attention from investors and market participants.
See More
Naya Capital Acquires Significant Stake in Masimo
- New Investment Disclosure: Naya Capital Management UK Ltd disclosed on February 18 that it acquired nearly 1.6 million shares of Masimo, valued at approximately $203 million, indicating strong confidence in the company.
- Asset Allocation Insight: This investment represents 15.3% of Naya Capital's 13F assets under management, positioning Masimo as one of only five reportable holdings, highlighting its significance in the firm's portfolio.
- Market Performance Comparison: Despite Masimo's stock declining 2.6% over the past year, it surged over 34% on February 17 after Danaher announced a $9.9 billion acquisition at $180 per share, showcasing a dramatic price increase from $130.15.
- Investment Risk Advisory: While Naya Capital's timing appears fortuitous, the uncertainty surrounding the acquisition poses significant downside risks for investors, suggesting a cautious approach and potential recommendation to hold off on purchasing shares.
See More
Naya Capital Initiates Position in Masimo with 1.6 Million Shares
- New Position: Naya Capital Management initiated a position in Masimo (NASDAQ:MASI) by purchasing approximately 1.6 million shares valued at nearly $203 million, representing 15.3% of the fund's 13F assets under management.
- Portfolio Overview: Naya Capital's portfolio consists of only five reportable holdings totaling over $1.3 billion, with Masimo being the fifth-largest position, indicating a significant commitment to the company.
- Market Performance: Despite Masimo's shares declining by 2.6% over the past year, they surged by over 34% on February 17 following Danaher's announcement to acquire the company for $9.9 billion, raising the stock price from $130.15 to $174.69.
- Investment Risk Advisory: While Naya Capital's timing appears fortunate, analysts caution that there is considerable downside risk if the acquisition deal fails, suggesting investors should proceed with caution before buying Masimo shares.
See More
Valuation Challenges Intensify for Tech Stocks
- Tech Stock Sell-off: A wave of selling in technology shares is occurring as investors express uncertainty about their future value, particularly as price-to-earnings ratios shrink dramatically, which negatively impacts overall investment sentiment.
- Danaher-Masimo Acquisition Risks: Danaher is acquiring Masimo at nearly 25 times next year's earnings, despite the latter's inability to justify its multiple over the years, raising concerns that could adversely affect Danaher's stock performance.
- CrowdStrike-Microsoft Partnership: CrowdStrike's Falcon platform is now available on the Microsoft Marketplace, which could significantly boost revenue; however, its current P/E ratio of 85 has led to a tepid market reaction, reflecting investor anxiety over high valuations.
- ServiceNow Management Confidence Issues: Despite ServiceNow's announcement of a $5 billion stock buyback and intentions from executives to buy shares, the stock price still fell, indicating market skepticism about its growth prospects amid intensifying AI competition.
See More
Danaher Acquires Masimo: Key Transaction Details
- Transaction Background: The deal follows a proxy contest led by activist hedge fund Politan Capital Management, resulting in the removal of Masimo founder Joe Kiani as board chair, who subsequently stepped down as CEO but retains about a 5% stake, indicating significant governance changes.
- Valuation Metrics: The transaction is valued at approximately 18x estimated 2027 EBITDA, or 15x including expected annual synergies, reflecting Danaher's confidence in Masimo's future profitability and potential growth in the diagnostics sector.
- Financial Expectations: Danaher anticipates Masimo will generate over $530 million in EBITDA by 2027, with more than $125 million in annual cost synergies and over $50 million in annual revenue synergies expected by the fifth year post-acquisition, showcasing a strong financial outlook.
- Market Reaction: Danaher’s stock rose 0.55% to $207.50 in the latest trading session, indicating a positive market response to the acquisition, with analysts suggesting that the deal enhances Danaher’s portfolio of high-quality assets.
See More
Jim Cramer's Trust Portfolio Trading Update
- Capital One Increase: Acquiring 30 shares of Capital One Financial at approximately $208 each raises the weighting in Jim Cramer's Trust to 3.05% from 2.9%, increasing total shares to 580, indicating confidence in the company's growth potential despite risks from proposed interest rate caps.
- Danaher Reduction: Selling 200 shares of Danaher at around $207 each decreases the weighting from 2.1% to 1.05%, realizing a disappointing 9% loss, reflecting concerns over its acquisition of pulse oximetry leader Masimo and a preference for biotech-focused acquisitions.
- Texas Roadhouse Sale: Offloading 200 shares of Texas Roadhouse at about $189 each reduces the weighting to 0.95% from 1.9%, achieving an 8% gain, yet concerns over persistent beef inflation suggest potential earnings misses in upcoming reports.
- Strategic Portfolio Adjustment: By reducing positions in underperforming stocks, Jim Cramer's Trust aims to sidestep potential earnings shortfalls, demonstrating a cautious approach to earnings expectations in the current market climate.
See More
