Is Masimo Corporation (MASI)’s Business Undervalued by the Market?

Ensemble Capital Management, an investment management company, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter, the strategy slightly outperformed with a gain of 8.76% compared to the S&P 500’s 8.74% gain. The strategy’s performance in the quarter was driven by big gains generated by small companies in the portfolio. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Ensemble Capital Management highlighted stocks like Masimo Corporation (NASDAQ:MASI) in the second quarter 2023 investor letter. Headquartered in Irvine, California, Masimo Corporation (NASDAQ:MASI) is a medical technology company. On July 27, 2023, Masimo Corporation (NASDAQ:MASI) stock closed at $117.50 per share. One-month return of Masimo Corporation (NASDAQ:MASI) was -28.59%, and its shares lost 18.73% of their value over the last 52 weeks. Masimo Corporation (NASDAQ:MASI) has a market capitalization of $6.202 billion.

Ensemble Capital Management made the following comment about Masimo Corporation (NASDAQ:MASI) in its second quarter 2023 investor letter:

“Masimo Corporation (NASDAQ:MASI) (-10.8%): Masimo also had an activist shareholder vote go against incumbent management, but the stock decline in the quarter began after Masimo’s trade secret case against Apple was declared a mistrial in early May, followed by tepid guidance issued on the earnings call a few days later. Similar to Illumina, we believe the market is materially undervaluing the core Masimo business today, which is also the thesis of the activist shareholders who won seats on Masimo’s board.”

medicine, health

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Masimo Corporation (NASDAQ:MASI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Masimo Corporation (NASDAQ:MASI) at the end of first quarter which was 34 in the previous quarter.

We discussed Masimo Corporation (NASDAQ:MASI) in another article and shared Ensemble Capital Management’s insights on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.