NEW YORK - Politan Capital Management, an influential shareholder of medical technology firm Masimo (NASDAQ:MASI) Corporation (NASDAQ:MASI), has publicly contested the company's decision to postpone its Annual Meeting of Stockholders from July 25, 2024, to September 19, 2024.
The investment firm, which holds an 8.9% stake in Masimo, also addressed a lawsuit filed by Masimo's board against Politan and its founder Quentin Koffey, who is also a Masimo board member.
Politan criticized the rescheduling as an attempt to stifle shareholder voices, citing a need to adhere to Masimo's bylaws and Delaware law, which require an annual meeting within 13 months of the last. The investment firm argued that the delay to a date 15 months past the last meeting is an unjustified move by Masimo's CEO and Chairman Joe Kiani to retain control in the face of shareholder dissent. Kiani's governance record was sharply criticized by the proxy advisory firm ISS on Monday.
In response to the company's actions, Politan has vowed to take necessary steps to prevent any further postponement of the Annual Meeting. The firm expressed confidence that the lawsuit, which it considers baseless, will be dismissed. Politan has urged shareholders to support change at Masimo by voting for its proposed nominees, Darlene Solomon and William Jellison, using the white proxy card provided.
The dispute underscores ongoing tensions between Politan and Masimo's leadership, with Politan advocating for what it perceives as necessary governance reforms. Shareholders are encouraged to review Politan's presentation and proxy materials available on the website www.AdvanceMasimo.com.
The information in this report is based on a press release statement from Politan Capital Management.
In other recent news, Masimo Corp reported robust preliminary performance for Q2 2024, with healthcare revenues reaching $344 million, a 22% year-over-year reported growth. The company is in active discussions to sell a majority stake in its consumer business, potentially valued between $850 million to $950 million.
Stifel maintained a Buy rating on Masimo's shares, reiterating a $170 price target, while BTIG reaffirmed its Buy rating and $166 price target. Piper Sandler upgraded Masimo's stock from Neutral to Overweight, reflecting improvements in the company's core healthcare business.
Institutional Shareholder Services (ISS) advised shareholders to vote for the election of two director candidates put forward by Politan, an activist investment firm. Masimo's Chief Operating Officer, Bilal Muhsin, has disclosed a conditional resignation, contingent upon the removal of Joe Kiani as Chairman of the Board and Chief Executive Officer. These are the recent developments within Masimo Corporation.
InvestingPro Insights
In light of the recent disputes between Politan Capital Management and Masimo Corporation (NASDAQ:MASI), investors may be closely monitoring the company's financial performance and market valuation. According to real-time data from InvestingPro, Masimo's market capitalization stands at $5.79 billion, reflecting the scale of the company within the medical technology sector.
The company's valuation metrics such as the Price/Earnings (P/E) Ratio at 72.94 and the adjusted P/E for the last twelve months as of Q1 2024 at 65.97, suggest a high earnings multiple, which could indicate expectations of future earnings growth or a premium being placed on the company's stock.
Despite recent revenue challenges, with a revenue decline of 13.96% over the last twelve months as of Q1 2024, Masimo's gross profit margin remains strong at 48.61%. This demonstrates the company's ability to maintain profitability in its core operations. Masimo's liquid assets surpass its short-term obligations, which may reassure investors of the company's financial stability and ability to meet its immediate liabilities.
InvestingPro Tips highlight that while analysts predict Masimo will be profitable this year, six analysts have revised their earnings estimates downwards for the upcoming period. This could signal caution for potential investors, as expectations for future earnings are being tempered. Furthermore, the company's stock has fared poorly over the last month, with a 19.76% decline in price total return, which may reflect investor sentiment surrounding the ongoing governance disputes.
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