Wall Street Zen Upgrades Transdigm Group (NYSE:TDG) to Buy

Transdigm Group (NYSE:TDG) was upgraded by investment analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued to investors on Sunday.

Several other research analysts also recently weighed in on TDG. Morgan Stanley increased their price target on Transdigm Group from $1,660.00 to $1,680.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Royal Bank Of Canada dropped their price objective on shares of Transdigm Group from $1,400.00 to $1,350.00 and set a “sector perform” rating on the stock in a report on Wednesday, May 6th. UBS Group cut their target price on shares of Transdigm Group from $1,745.00 to $1,645.00 and set a “buy” rating for the company in a research report on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Transdigm Group from $1,306.00 to $1,350.00 and gave the stock a “hold” rating in a research note on Wednesday, May 6th. Finally, Susquehanna lowered their price target on shares of Transdigm Group from $1,400.00 to $1,350.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 6th. Nine equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $1,518.25.

Transdigm Group Stock Down 0.3%

Transdigm Group stock traded down $3.95 during trading on Friday, hitting $1,291.76. The stock had a trading volume of 260,735 shares, compared to its average volume of 366,897. Transdigm Group has a 1 year low of $1,123.61 and a 1 year high of $1,623.82. The stock’s 50 day moving average is $1,257.11 and its two-hundred day moving average is $1,277.22. The stock has a market cap of $72.25 billion, a price-to-earnings ratio of 40.32, a price-to-earnings-growth ratio of 2.26 and a beta of 0.90.

Transdigm Group (NYSE:TDG) last released its earnings results on Tuesday, May 5th. The aerospace company reported $9.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $9.46 by $0.39. The business had revenue of $2.54 billion during the quarter, compared to the consensus estimate of $2.47 billion. Transdigm Group had a negative return on equity of 26.49% and a net margin of 20.24%.The business’s revenue for the quarter was up 18.3% on a year-over-year basis. During the same period last year, the business posted $9.11 earnings per share. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. As a group, equities research analysts anticipate that Transdigm Group will post 37.96 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, COO Joel Reiss sold 3,900 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $1,276.78, for a total transaction of $4,979,442.00. Following the sale, the chief operating officer owned 3,600 shares of the company’s stock, valued at approximately $4,596,408. This represents a 52.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director W Nicholas Howley sold 10,132 shares of the stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $1,319.55, for a total value of $13,369,680.60. Following the sale, the director directly owned 21,548 shares in the company, valued at $28,433,663.40. This trade represents a 31.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 42,096 shares of company stock worth $52,625,524. 3.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Transdigm Group

A number of large investors have recently modified their holdings of TDG. Capital International Investors grew its stake in Transdigm Group by 0.9% during the fourth quarter. Capital International Investors now owns 6,544,423 shares of the aerospace company’s stock valued at $8,702,655,000 after acquiring an additional 55,230 shares in the last quarter. Capital World Investors lifted its stake in Transdigm Group by 0.4% in the 4th quarter. Capital World Investors now owns 3,954,512 shares of the aerospace company’s stock worth $5,258,898,000 after purchasing an additional 15,825 shares in the last quarter. Capital Research Global Investors boosted its holdings in Transdigm Group by 12.2% in the 4th quarter. Capital Research Global Investors now owns 2,476,661 shares of the aerospace company’s stock valued at $3,293,527,000 after purchasing an additional 268,824 shares during the period. State Street Corp boosted its holdings in Transdigm Group by 2.8% in the 4th quarter. State Street Corp now owns 2,456,186 shares of the aerospace company’s stock valued at $3,266,359,000 after purchasing an additional 67,348 shares during the period. Finally, Soroban Capital Partners LP grew its position in shares of Transdigm Group by 14.5% during the 1st quarter. Soroban Capital Partners LP now owns 856,197 shares of the aerospace company’s stock valued at $992,298,000 after purchasing an additional 108,227 shares in the last quarter. 95.78% of the stock is currently owned by institutional investors.

About Transdigm Group

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components and systems for commercial and military aerospace applications. The company’s product portfolio covers a broad range of mission-critical parts and subsystems, including mechanical and electromechanical components, ignition and fuel system parts, sensors and actuators, cockpit and cabin systems, and other safety-critical hardware. TransDigm supplies original equipment manufacturers (OEMs) as well as the aftermarket, providing spare parts, repair and overhaul services and component support throughout an asset’s life cycle.

TransDigm’s operating model places emphasis on proprietary, niche components that are difficult to replace, and the company operates through a collection of independently run subsidiaries and brands that sell specialized products.