This Fund Built a $26 Million Stake in a Medical Tech Stock That's Soaring After a $9.9 Billion Deal Announcement

On February 17, 2026, Parkman Healthcare Partners disclosed a new position in Masimo Corporation (NASDAQ:MASI), acquiring 200,000 shares in the fourth quarter worth an estimated $26.01 million at quarter’s end.

What happened

According to its SEC filing dated February 17, 2026, Parkman Healthcare Partners established a new position in Masimo by buying 200,000 shares. The new stake brought the fund’s quarter-end position in Masimo to $26.01 million.

What else to know

• This was a new position, representing 2.48% of Parkman Healthcare Partners’ $1.05 billion in reportable U.S. equity assets as of December 31, 2025.
• Top five holdings after the quarter-end filing were:
  • NYSE: BSX: $47.73 million (4.5% of AUM)
  • NASDAQ: PODD: $40.04 million (3.8% of AUM)
  • NASDAQ: DXCM: $38.99 million (3.7% of AUM)
  • NYSE: SYK: $37.07 million (3.5% of AUM)
  • NYSE: CVS: $35.73 million (3.4% of AUM)
• As of Friday, Masimo shares were priced at $174.69, up about 6% over the past year and well underperforming the S&P 500’s roughly 20% gain in the same period.

Company overview

Company snapshot

• Masimo Corporation offers noninvasive patient monitoring technologies, including pulse oximetry, brain function monitoring, capnography, regional oximetry, and hospital automation solutions.
• The company generates revenue primarily through the sale of proprietary medical devices and software platforms to healthcare providers and OEM partners, leveraging direct sales and distribution channels.
• It serves hospitals, emergency medical services, home care providers, long-term care facilities, physician offices, veterinarians, and consumers worldwide.

Masimo Corporation is a leading provider of advanced noninvasive monitoring technologies and hospital automation solutions, with a global presence in the medical instruments and supplies sector. The company differentiates itself through proprietary signal extraction and multi-parameter monitoring platforms designed to improve patient outcomes and workflow efficiency. Its integrated product suite and established relationships with healthcare institutions underpin its competitive positioning in a rapidly evolving market.

What this transaction means for investors

Takeover premiums can instantly rewrite the investment case for a stock, especially in healthcare where breakthrough technology and strong hospital relationships can command enormous strategic value, and that dynamic is now front and center for Masimo.

Shares have surged 35% this year, the vast majority of which came after the medical technology company announced last month it agreed to be acquired for $180 per share in cash in a transaction valued at roughly $9.9 billion, a deal that would bring the patient monitoring specialist into a major diagnostics platform while allowing it to continue operating as a standalone brand.

The sharp rally this year highlights how quickly sentiment can shift when strategic buyers enter the picture, and it makes this new stake incredibly well timed, especially since shares were otherwise struggling. The transaction is expected to close in the second half of the year. Within the broader portfolio, the new position sits alongside several major healthcare holdings such as Boston Scientific, Dexcom, Insulet, and Stryker. That mix reflects a clear strategy centered on companies that combine strong intellectual property with durable demand from hospitals and chronic disease care.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Insulet and Masimo. The Motley Fool recommends CVS Health and DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.