Masimo (MASI) shares experienced a remarkable 8.7% surge in the last trading session, closing at $121.42. This surge came amidst a period of heightened trading activity, with a significantly larger volume of shares changing hands than usual. It’s important to note that this recent rally contrasts with the stock’s 8.5% decline over the preceding four weeks.
The dramatic upswing in Masimo’s stock can be attributed to the surprising news regarding the company’s newly elected Board of Directors. On September 19th, activist investor Quentin Koffey and his Politan Capital Management group successfully secured both available Board seats at Masimo. This victory guarantees that the newly appointed independent directors now hold a controlling position on the Board.
The market reacted positively to this news on September 20th, with MASI shares experiencing a significant surge. Investors are optimistic that the new Board will be more responsive to shareholder interests and prioritize their concerns. This shift in board composition has sparked anticipation for a more shareholder-centric approach from Masimo.
Looking ahead, Masimo is expected to release its quarterly earnings report, with analysts forecasting earnings of $0.84 per share, representing a year-over-year increase of 33.3%. Revenue projections stand at $501.93 million, marking a 4.8% growth compared to the same period last year. While these earnings and revenue expectations play a vital role in evaluating the potential strength of a stock, research consistently highlights a strong correlation between shifts in earnings estimate revisions and near-term stock price movements.
It’s worth noting that the consensus EPS estimate for Masimo’s upcoming quarter has remained unchanged over the past 30 days. A stock’s price often struggles to sustain upward momentum without any trend in earnings estimate revisions. Therefore, investors should closely monitor MASI’s performance in the coming weeks and months to determine whether the recent surge can translate into sustained strength. Currently, the stock carries a Zacks Rank #2 (Buy), indicating favorable prospects.
Masimo belongs to the Zacks Medical – Instruments industry. CVRx (CVRX), another company within this sector, closed the previous trading session down 1.5% at $9.11. CVRX has seen a 10.9% return over the past month. The consensus EPS estimate for CVRx’s upcoming report has remained unchanged over the past month at -$0.45, representing a decrease of 4.7% compared to the previous year’s earnings. CVRx currently holds a Zacks Rank of #3 (Hold).
