Masimo: A Stellar Performance After The Dust Has Settled

Dec. 11, 2024 1:00 AM ETMasimo Corporation (MASI) Stock
(8min)

Summary

  • Masimo's proxy fight and Sound United acquisition distracted from the core business, but resolution and focus on healthcare are driving value and momentum.
  • Shares surged over 50% since July due to strong Q2 results and improved earnings guidance, despite ongoing challenges and leadership changes.
  • Current valuations are demanding, suggesting an opportune time for profit taking, while I maintain a position for long-term growth potential.
  • Divesting Sound United could reduce debt, enhancing focus on the core med-tech business with promising double-digit organic growth.
  • Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More »

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Richard Drury/DigitalVision via Getty Images

Over the summer, I believed that a bitter and intense proxy fight was hurting management and shares, and thereby investors, in Masimo (NASDAQ:MASI). After the company was contemplating reversing the Sound United acquisition, a fight

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This article was written by

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The Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MASI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I have trimmed a long position substantially at current levels.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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