SCHEDULE: FMR LLC, Abigail Johnson Disclose 4.5% Stake in Masimo

FMR LLC and Abigail P. Johnson have filed an amended Schedule 13G, disclosing a 4.5% beneficial ownership stake in Masimo Corp common stock as of February 27, 2026.

Summary

• FMR LLC and Abigail P. Johnson collectively reported beneficial ownership of 2,349,974.52 shares of Masimo Corp common stock.
• This represents 4.5% of Masimo Corp's outstanding common stock.
• The filing is an Amendment No. 3, indicating previous filings for this stake, and the current ownership is below the 5% threshold.
• FMR LLC holds sole voting power over 2,286,842.00 shares and sole dispositive power over 2,349,974.52 shares.
• Abigail P. Johnson, as a Director, Chairman, and CEO of FMR LLC, is deemed to beneficially own the same aggregate amount of shares (2,349,974.52) with sole dispositive power, but no sole voting power.
• The filing certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of Masimo Corp, other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this filing as largely neutral, reflecting a routine disclosure of a significant, but passive, institutional stake. The slight positive bias comes from the continued presence of a major investor like FMR LLC, even if their stake has dipped below 5%.

Positives

• A significant institutional investor, FMR LLC, maintains a substantial stake in Masimo Corp, potentially signaling confidence in the company's long-term prospects.
• The filing explicitly states the stake is held in the ordinary course of business and not for control-influencing purposes, which can reduce concerns about activist investor pressure, with the exception of Rule 14a-11 nominations.

Negatives

• The beneficial ownership percentage has decreased to 4.5%, falling below the 5% threshold that would require more detailed Schedule 13D filings, which could be interpreted as a reduction in the investor's overall stake.

Risks

• The filing indicates that while the securities were not acquired for the purpose of changing or influencing control, they were acquired and are held in connection with activities solely related to a nomination under Rule 14a-11. This suggests a potential for future engagement in board nominations or proxy contests, which could introduce governance-related uncertainties for Masimo Corp.

Future Outlook

NA

Management Comments

• Abigail P. Johnson is a Director, the Chairman, and the Chief Executive Officer of FMR LLC.
• The Johnson family, including Abigail P. Johnson, are the predominant owners of Series B voting common shares of FMR LLC, representing 49% of its voting power.
• The Johnson family group and other Series B shareholders have a voting agreement to vote all Series B shares in accordance with the majority vote.

Industry Context

StockSavvy.ai notes that institutional ownership disclosures like this Schedule 13G provide transparency into significant holdings by major investment firms. A 4.5% stake, while below the 5% threshold for more active reporting, still represents a notable position for a firm like FMR LLC in the medical technology sector, where Masimo operates. Such filings are routinely monitored by the market for insights into institutional sentiment and portfolio adjustments.

Comparison to Industry Standards

• StockSavvy.ai observes that a 4.5% beneficial ownership stake by a major asset manager like FMR LLC is a substantial, albeit passive, position.
• For context, other large institutional investors often hold similar or larger passive stakes in companies within the healthcare technology sector, such as Medtronic (MDT) or Intuitive Surgical (ISRG), reflecting diversified portfolio strategies rather than activist intent.
• The certification that the shares are held in the ordinary course of business aligns with typical passive investment strategies of large funds.

Corporate Governance

Related Party Transactions

• FMR LLC and Abigail P. Johnson are related parties, with Abigail P. Johnson being a Director, Chairman, and CEO of FMR LLC, and a predominant owner of its voting shares.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional holder's stake, which could influence market perception and trading activity. The reduction below 5% might lead to questions about FMR LLC's long-term strategy for Masimo.

Key Dates

Recommendation

The filing is a routine beneficial ownership disclosure, indicating FMR LLC and Abigail P. Johnson hold a 4.5% stake in Masimo Corp. While a significant institutional holding, it is below the 5% threshold for more active reporting and is certified as being held in the ordinary course of business. This suggests a passive investment, and the filing itself does not provide new information that would warrant a change in investment thesis for Masimo Corp, thus a 'hold' recommendation is appropriate for existing investors.

Keywords

Masimo Corp, MASI, FMR LLC, Abigail P. Johnson, Schedule 13G, Beneficial Ownership, Institutional Investor, Common Stock, SEC Filing, Investment Management