Transdigm Group (NYSE:TDG) Given New $1,200.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada lowered TransDigm’s price target from $1,350 to $1,200 while maintaining a “sector perform” rating, implying 6.66% upside from the prior close.
• Analyst sentiment is mixed: five analysts rate the stock a Buy and 13 rate it a Hold, producing an overall “Hold” rating and average price target of $1,431.40.
• TransDigm shares traded at $1,125.10, while the company’s latest quarterly results exceeded estimates with $10.87 in EPS and $2.74 billion in revenue; insiders sold approximately $33.9 million of stock over the past quarter.

Transdigm Group (NYSE:TDG - Get Free Report) had its price objective reduced by Royal Bank Of Canada from $1,350.00 to $1,200.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "sector perform" rating on the aerospace company's stock. Royal Bank Of Canada's target price indicates a potential upside of 6.66% from the stock's previous close.

Several other research firms have also commented on TDG. The Goldman Sachs Group lowered their price target on Transdigm Group from $1,972.00 to $1,745.00 and set a "buy" rating for the company in a research report on Monday. Morgan Stanley cut Transdigm Group from an "overweight" rating to an "equal weight" rating and dropped their price objective for the company from $1,680.00 to $1,345.00 in a research note on Wednesday, July 15th. Guggenheim began coverage on Transdigm Group in a report on Tuesday, September 15th. They issued a "neutral" rating on the stock. BMO Capital Markets cut their price objective on Transdigm Group from $1,525.00 to $1,400.00 and set an "outperform" rating on the stock in a report on Monday, September 28th. Finally, Wells Fargo & Company decreased their target price on Transdigm Group from $1,450.00 to $1,210.00 and set an "equal weight" rating on the stock in a research note on Wednesday, September 30th. Five investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat, Transdigm Group currently has an average rating of "Hold" and an average target price of $1,431.40.

Transdigm Group Stock Performance

Shares of Transdigm Group stock traded up $15.33 on Thursday, reaching $1,125.10. The company had a trading volume of 49,661 shares, compared to its average volume of 391,418. The firm's 50 day moving average price is $1,150.54 and its two-hundred day moving average price is $1,207.36. The firm has a market cap of $62.93 billion, a PE ratio of 34.12, a PEG ratio of 1.57 and a beta of 0.96. Transdigm Group has a 52-week low of $1,071.25 and a 52-week high of $1,463.03.

Transdigm Group (NYSE:TDG - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $10.87 EPS for the quarter, topping the consensus estimate of $10.30 by $0.57. The firm 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 business's revenue for the quarter was up 22.5% compared to the same quarter last year. During the same period in the prior year, the business posted $9.60 EPS. Transdigm Group has set its FY 2026 guidance at 40.620-41.460 EPS. As a group, sell-side analysts predict that Transdigm Group will post 38.87 EPS for the current year.

Insider Buying and Selling

In other Transdigm Group news, COO Joel Reiss sold 3,900 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $1,094.58, for a total transaction of $4,268,862.00. Following the sale, the chief operating officer directly owned 3,600 shares in the company, valued at $3,940,488. This represents a 52.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director W. Howley sold 10,132 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $1,236.28, for a total transaction of $12,525,988.96. Following the completion of the transaction, the director directly owned 21,548 shares of the company's stock, valued at $26,639,361.44. This represents a 31.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 28,064 shares of company stock worth $33,947,338. 3.20% of the stock is owned by company insiders.

Institutional Trading of Transdigm Group

Several hedge funds have recently modified their holdings of TDG. Burkett Financial Services LLC acquired a new position in shares of Transdigm Group during the second quarter worth about $25,000. Meeder Asset Management Inc. acquired a new stake in Transdigm Group in the second quarter valued at about $31,000. Trust Co. of Vermont acquired a new stake in Transdigm Group in the second quarter valued at about $33,000. MV Capital Management Inc. acquired a new stake in Transdigm Group in the fourth quarter valued at about $35,000. Finally, Western Wealth Management LLC purchased a new stake in Transdigm Group in the 1st quarter valued at approximately $30,000. 95.78% of the stock is currently owned by institutional investors and hedge funds.

Transdigm Group Company Profile

TransDigm Group Incorporated is an aerospace manufacturing company that designs, produces and supplies highly engineered aircraft components, systems and related products. Its offerings include engine and airframe components, ignition systems, pumps, valves, cockpit and cabin equipment, data and control systems, and other specialized products used on commercial, business, general aviation and military aircraft.

The company serves both original equipment manufacturers and the aftermarket.

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