Zacks Investment Research upgraded shares of Transdigm Group Incorporated (NYSE:TDG) from a sell rating to a hold rating in a report issued on Wednesday morning.
According to Zacks, “TransDigm’s excellent business operation model, which implements value-based operating strategies guided by three value driver concepts, has helped the company generate sufficient organic & inorganic growth and drive operating margin expansion over the past few quarters. This apart, TransDigm’s strategic acquisitions in the proprietary aerospace businesses has bolstered its aftermarket content, thus supplementing sales. However, mounting interest expenses and escalating debt burden continue to bother TransDigm’s financials. Further, TransDigm is seeing some negative trends at present, like soft business jet, helicopter and freighter revenues, which might dent its top line growth in the near future. The company has some concerns about the commercial transport industry in the coming times as well. In light of such adversity, the company’s shares have dismally underperformed the industry average, on a year-to-date basis.”
A number of other brokerages have also weighed in on TDG. Cowen and Company reaffirmed a market perform rating and issued a $290.00 price target (up from $219.00) on shares of Transdigm Group in a research note on Thursday, August 10th. BidaskClub lowered shares of Transdigm Group from a strong-buy rating to a buy rating in a research note on Monday, July 31st. Canaccord Genuity reaffirmed a buy rating and issued a $330.00 price target on shares of Transdigm Group in a research note on Friday, September 15th. Jefferies Group LLC lowered shares of Transdigm Group from a buy rating to a hold rating and reduced their price target for the stock from $322.00 to $280.00 in a research note on Wednesday, September 20th. Finally, Vertical Research reaffirmed a buy rating and issued a $316.00 price target (up from $280.00) on shares of Transdigm Group in a research note on Thursday, August 10th. One analyst has rated the stock with a sell rating, five have assigned a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. Transdigm Group has an average rating of Buy and an average price target of $296.87.
Transdigm Group (NYSE:TDG) last issued its quarterly earnings results on Thursday, November 9th. The aerospace company reported $3.48 earnings per share for the quarter, topping analysts’ consensus estimates of $3.18 by $0.30. The company had revenue of $923.89 million during the quarter, compared to analyst estimates of $959.77 million. Transdigm Group had a net margin of 12.44% and a negative return on equity of 30.13%. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the prior year, the business posted $3.29 EPS. research analysts anticipate that Transdigm Group will post 12.5 earnings per share for the current year.
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In other news, VP Robert S. Henderson sold 15,000 shares of the business’s stock in a transaction that occurred on Monday, October 16th. The shares were sold at an average price of $263.74, for a total transaction of $3,956,100.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO W Nicholas Howley sold 63,776 shares of the company’s stock in a transaction that occurred on Thursday, November 16th. The shares were sold at an average price of $268.60, for a total transaction of $17,130,233.60. The disclosure for this sale can be found here. Insiders have sold 96,776 shares of company stock worth $25,777,794 in the last 90 days. 10.52% of the stock is owned by company insiders.
Institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. increased its stake in Transdigm Group by 3.8% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 382 shares of the aerospace company’s stock valued at $103,000 after buying an additional 14 shares during the period. Korea Investment CORP increased its stake in Transdigm Group by 142.6% in the 2nd quarter. Korea Investment CORP now owns 495 shares of the aerospace company’s stock valued at $133,000 after buying an additional 291 shares during the period. Vantage Financial Partners Ltd. Inc. acquired a new position in Transdigm Group in the 2nd quarter valued at approximately $538,000. HighTower Advisors LLC acquired a new position in Transdigm Group in the 2nd quarter valued at approximately $201,000. Finally, Laurion Capital Management LP acquired a new position in Transdigm Group in the 2nd quarter valued at approximately $205,000.
Transdigm Group Company Profile
TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service. The Company operates through three segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies.
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