Masimo supplies noninvasive monitoring tech to hospitals and care providers, serving both medical and consumer health markets worldwide.
According to an SEC filing dated Feb. 18, Naya Capital Management UK Ltd disclosed a new position in Masimo (MASI +0.59%), acquiring nearly 1.6 million shares.
- Initiated a new position valued at about $203 million
- Position equals 15.3% of the fund’s 13F assets under management
- Masimo enters Naya Capital’s portfolio as one of only five reportable holdings
What else to know
- Top positions after the filing:
- HUM: $318.4 million (24.0% of AUM)
- UNH: $301.3 million (22.7% of AUM)
- WWD: $297.1 million (22.4% of AUM)
- FWONK: $208.2 million (15.7% of AUM)
Company overview
| Metric | Value |
|---|---|
| Price (as of market close Feb. 18) | $175.61 |
| Market capitalization | $9.4 billion |
| Revenue (TTM) | $1.7 billion |
| Net income (TTM) | ($203.8 million) |
Company snapshot
Masimo is a leading provider of advanced noninvasive monitoring solutions, focusing on technologies that improve patient care and operational efficiency in healthcare settings. The company leverages proprietary signal extraction and automation platforms to address critical needs in hospital and outpatient environments.
- Develops and markets noninvasive patient monitoring technologies, including pulse oximetry, brain function monitoring, capnography, regional oximetry, hemodynamic monitoring, and hospital automation platforms.
- Serves hospitals, emergency medical services, home care providers, long-term care facilities, physician offices, veterinarians, and consumers.
What this transaction means for investors
Naya Capital Management only has five disclosed positions in its SEC 13F filing. However, these total over $1.3 billion.
The firm initiated its position in Masimo in a significant way. Previously owning no shares, it purchased nearly 1.6 million shares during the fourth quarter. These were valued at nearly $203 million.
It’s Naya Capital’s fifth-largest position, according to its filing. However, it made up 15.3% of its disclosed assets.
The firm’s confidence came as Masimo’s shares lost 2.6% over the last year through Feb. 17. During this period, the S&P 500 index returned 13.7%, and the NASDAQ Composite returned 14.3%.
However, the shares jumped more than 34%, from $130.15 to $174.69 on Feb. 17. That’s because Danaher (NYSE: DHR) announced it would buy the company for $9.9 billion, or $180 a share, in cash.
While Naya Capital’s timing proved fortunate, there’s not much upside left for investors, but plenty of downside if the deal falls through. Hence, it’s best to pass on the shares.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Masimo. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.