Masimo (NASDAQ:MASI) Shares Gap Up – Here’s Why

Masimo Corporation (NASDAQ:MASI)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $130.15, but opened at $175.00. Masimo shares last traded at $174.5170, with a volume of 5,060,852 shares trading hands.

Key Masimo News

Here are the key news stories impacting Masimo this week:

• Positive Sentiment: Danaher reached a definitive agreement to acquire Masimo for $180 per share in cash, valuing the transaction at about $9.9–$10.0 billion — the core driver of the rally because it puts an explicit premium on MASI shares. Danaher To Acquire Masimo Corporation (PR Newswire)
• Positive Sentiment: Multiple major outlets confirmed the deal (Reuters/CNBC/FT), increasing market confidence that the transaction is real and imminent. Danaher to buy Masimo for $9.9 billion (Reuters)
• Positive Sentiment: Reports state Masimo would operate as a standalone business inside Danaher’s Diagnostics segment — a detail investors see as preserving Masimo’s growth prospects under a larger owner. Danaher Strikes $10 Billion Deal for Masimo (WSJ)
• Neutral Sentiment: Market action is consistent with merger‑arbitrage dynamics: MASI is trading below the $180 offer to reflect time‑to‑close and deal risk, so price moves will mirror shifting perceptions of closing probability and timing. Masimo shares jump 34% after Danaher agrees to buy the company (QuiverQuant)
• Neutral Sentiment: Deal timetable: companies expect closing in the second half of 2026 subject to customary conditions and regulatory approvals — that timeframe matters for carry, financing and arbitrage positioning. Danaher to buy Masimo in $9.9 billion deal (CNBC)
• Negative Sentiment: Several investor‑rights law firms have opened investigations into whether the sale price is fair, signaling potential litigation or shareholder challenges that could slow or complicate closing. MASI Alert: Wohl & Fruchter Investigating Fairness (GlobeNewswire)
• Negative Sentiment: Regulatory approvals, customary closing conditions and potential legal challenges create execution risk — MASI will likely trade below the $180 offer until those risks are resolved. Danaher closes in on nearly $10bn deal for Masimo (FT)

Analysts Set New Price Targets

Several research firms have weighed in on MASI. Weiss Ratings reissued a “sell (d)” rating on shares of Masimo in a research note on Thursday, January 22nd. BTIG Research raised their price target on Masimo from $198.00 to $200.00 and gave the stock a “buy” rating in a research report on Thursday, December 4th. Wells Fargo & Company restated an “overweight” rating and issued a $190.00 target price on shares of Masimo in a report on Friday, December 5th. Bank of America initiated coverage on shares of Masimo in a research report on Monday, November 17th. They set a “neutral” rating and a $162.00 price target for the company. Finally, Stifel Nicolaus set a $180.00 price objective on shares of Masimo in a research note on Tuesday. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $182.83.

Masimo Stock Up 34.3%

The stock has a market cap of $9.39 billion, a PE ratio of -16.58, a price-to-earnings-growth ratio of 1.32 and a beta of 1.26. The business has a 50-day moving average price of $136.28 and a 200-day moving average price of $142.46. The company has a current ratio of 2.84, a quick ratio of 1.92 and a debt-to-equity ratio of 0.69.

Hedge Funds Weigh In On Masimo

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in shares of Masimo by 3.7% during the 3rd quarter. Vanguard Group Inc. now owns 4,810,011 shares of the medical equipment provider’s stock valued at $709,717,000 after purchasing an additional 171,876 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its position in shares of Masimo by 1.7% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 2,663,875 shares of the medical equipment provider’s stock valued at $346,464,000 after acquiring an additional 43,915 shares during the last quarter. Westfield Capital Management Co. LP boosted its stake in shares of Masimo by 7.2% during the 4th quarter. Westfield Capital Management Co. LP now owns 1,522,049 shares of the medical equipment provider’s stock worth $197,958,000 after acquiring an additional 102,799 shares in the last quarter. State Street Corp grew its holdings in shares of Masimo by 0.7% in the 2nd quarter. State Street Corp now owns 1,486,394 shares of the medical equipment provider’s stock worth $250,041,000 after acquiring an additional 10,403 shares during the last quarter. Finally, Alyeska Investment Group L.P. lifted its holdings in shares of Masimo by 21.7% during the third quarter. Alyeska Investment Group L.P. now owns 1,381,085 shares of the medical equipment provider’s stock valued at $203,779,000 after purchasing an additional 246,595 shares during the last quarter. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

About Masimo

Masimo (NASDAQ: MASI) is a global medical technology company specializing in noninvasive monitoring solutions. The company’s flagship technology, Masimo SET® (Signal Extraction Technology), enhances the accuracy of pulse oximetry in challenging clinical conditions. Beyond pulse oximetry, Masimo’s portfolio extends to brain function monitoring, regional oximetry, and acoustic respiration rate monitoring, serving critical, acute, and ambulatory care settings.

In addition to its core monitoring technologies, Masimo offers a range of patient cables, sensors, and connectivity platforms designed to integrate with hospital information systems and remote monitoring applications.