Guggenheim Initiates Coverage on Transdigm Group (NYSE:TDG)

Key Points

• Guggenheim initiated coverage of TransDigm with a “neutral” rating. The broader analyst consensus is also “Hold,” with a target price of $1,454.87.
• TransDigm shares opened at $1,111.13, down 2.6%, near their 52-week low. The company recently exceeded quarterly expectations, reporting $10.87 in EPS and $2.74 billion in revenue, up 22.5% year over year.
• Insiders sold approximately $43.0 million worth of shares over the past quarter, including substantial sales by a director and the COO.

Analysts at Guggenheim started coverage on shares of Transdigm Group (NYSE:TDG - Get Free Report) in a research note issued on Tuesday, Benzinga reports. The brokerage set a "neutral" rating on the aerospace company's stock.

TDG has been the topic of several other research reports. Melius Research reiterated a "hold" rating and issued a $1,331.00 price target on shares of Transdigm Group in a report on Monday. JPMorgan Chase & Co. upped their price target on shares of Transdigm Group from $1,440.00 to $1,450.00 and gave the stock a "neutral" rating in a research note on Monday, June 15th. BMO Capital Markets raised their price objective on shares of Transdigm Group from $1,450.00 to $1,525.00 and gave the company an "outperform" rating in a research note on Thursday, July 2nd. Morgan Stanley cut Transdigm Group from an "overweight" rating to an "equal weight" rating and lowered their price objective for the company from $1,680.00 to $1,345.00 in a research report on Wednesday, July 15th. Finally, UBS Group lifted their target price on Transdigm Group from $1,585.00 to $1,695.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Six analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. Based on data from MarketBeat.com, Transdigm Group has a consensus rating of "Hold" and a consensus target price of $1,454.87.

Transdigm Group Stock Down 2.6%

Shares of NYSE TDG opened at $1,111.13 on Tuesday. The firm's fifty day moving average is $1,218.52 and its 200 day moving average is $1,229.77. Transdigm Group has a 52 week low of $1,102.37 and a 52 week high of $1,463.03. The company has a market cap of $62.15 billion, a price-to-earnings ratio of 33.71, a PEG ratio of 1.89 and a beta of 0.91.

Transdigm Group (NYSE:TDG - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $10.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $10.30 by $0.57. The business had revenue of $2.74 billion for the quarter, compared to analyst estimates of $2.68 billion. Transdigm Group had a net margin of 19.69% and a negative return on equity of 23.65%. The company's revenue was up 22.5% on a year-over-year basis. During the same quarter last year, the firm earned $9.60 EPS. Transdigm Group has set its FY 2026 guidance at 40.620-41.460 EPS. Equities research analysts anticipate that Transdigm Group will post 38.81 earnings per share for the current year.

Insider Activity at Transdigm Group

In related news, Director W. Howley sold 10,132 shares of the company's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $1,216.08, for a total value of $12,321,322.56. Following the completion of the transaction, the director owned 21,548 shares of the company's stock, valued at approximately $26,204,091.84. This represents a 31.98% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Joel Reiss sold 3,900 shares of Transdigm Group stock in a transaction on Monday, August 17th. The shares were sold at an average price of $1,238.76, for a total transaction of $4,831,164.00. Following the completion of the sale, the chief operating officer owned 3,600 shares in the company, valued at approximately $4,459,536. This represents a 52.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 34,296 shares of company stock worth $43,048,156 over the last quarter. Insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On Transdigm Group

Large investors have recently made changes to their positions in the company. California State Teachers Retirement System grew its position in shares of Transdigm Group by 120,385.0% during the second quarter. California State Teachers Retirement System now owns 112,352,246 shares of the aerospace company's stock worth $149,657,686,000 after buying an additional 112,258,996 shares in the last quarter. Capital International Investors increased its position in shares of Transdigm Group by 0.9% in the 4th quarter. Capital International Investors now owns 6,544,423 shares of the aerospace company's stock worth $8,702,655,000 after purchasing an additional 55,230 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of Transdigm Group in the 2nd quarter valued at about $6,489,039,000. Capital World Investors lifted its position in shares of Transdigm Group by 0.4% during the fourth 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 during the last quarter. Finally, Capital Research Global Investors lifted its position in shares of Transdigm Group by 12.2% during the fourth quarter. Capital Research Global Investors now owns 2,476,661 shares of the aerospace company's stock worth $3,293,527,000 after purchasing an additional 268,824 shares during the last quarter. 95.78% of the stock is owned by hedge funds and other institutional investors.

About Transdigm Group

TransDigm Group Incorporated NYSE: TDG designs, produces and supplies aircraft components, systems and related aftermarket services. The company focuses primarily on proprietary aerospace products, including mechanical and electromechanical actuators, ignition systems, pumps, valves, sensors, cockpit and data-acquisition systems, power-conditioning equipment, lighting, lavatory components, seat belts and cargo-loading systems.

TransDigm serves commercial and regional airlines, business and general aviation operators, aircraft manufacturers and military customers.

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