Transdigm Group (NYSE:TDG) Stock Gets Price Target Increase from Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised its TransDigm price target from $1,200 to $1,300, while keeping a “sector perform” rating; the target implies about 5.8% upside from the reported share price.
• TransDigm beat quarterly estimates, reporting EPS of $12.44 versus $12.21 expected and revenue of $2.99 billion versus $2.95 billion expected. Revenue increased 22.6% year over year.
• Analyst views remain mostly neutral: MarketBeat reported an average “Hold” rating and an average price target of $1,435.07, with five Buy ratings and 13 Hold ratings.

Transdigm Group (NYSE:TDG - Get Free Report) had its target price boosted by stock analysts at Royal Bank Of Canada from $1,200.00 to $1,300.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm currently has a "sector perform" rating on the aerospace company's stock. Royal Bank Of Canada's price target would indicate a potential upside of 5.81% from the company's current price.

Other research analysts also recently issued research reports about the company. JPMorgan Chase & Co. dropped their price objective on Transdigm Group from $1,450.00 to $1,415.00 and set a "neutral" rating on the stock in a report on Thursday, September 17th. BMO Capital Markets decreased their target price on Transdigm Group from $1,525.00 to $1,400.00 and set an "outperform" rating for the company in a research note on Monday, September 28th. TD Cowen lowered their price target on Transdigm Group from $1,450.00 to $1,300.00 and set a "buy" rating for the company in a report on Friday, October 9th. Wells Fargo & Company lowered their price target on Transdigm Group from $1,450.00 to $1,210.00 and set an "equal weight" rating for the company in a report on Wednesday, September 30th. Finally, Stifel Nicolaus lowered shares of Transdigm Group from a "buy" rating to a "hold" rating and dropped their price target for the company from $1,525.00 to $1,405.00 in a research note on Wednesday, August 5th. Five investment analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $1,435.07.

Transdigm Group Price Performance

Shares of TDG traded up $3.13 during midday trading on Wednesday, reaching $1,228.67. The stock had a trading volume of 98,171 shares, compared to its average volume of 392,017. Transdigm Group has a 1-year low of $1,071.25 and a 1-year high of $1,463.03. The company's fifty day simple moving average is $1,131.80 and its two-hundred day simple moving average is $1,221.05. The company has a market cap of $68.72 billion, a price-to-earnings ratio of 37.29, a PEG ratio of 1.74 and a beta of 0.98.

Transdigm Group (NYSE:TDG - Get Free Report) last released its quarterly earnings data on Tuesday, November 10th. The aerospace company reported $12.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $12.21 by $0.23. The business had revenue of $2.99 billion during the quarter, compared to analysts' expectations of $2.95 billion. Transdigm Group had a net margin of 19.69% and a negative return on equity of 23.65%. The company's revenue for the quarter was up 22.6% on a year-over-year basis. During the same period in the previous year, the company earned $10.82 EPS. Transdigm Group has set its FY 2027 guidance at 47.090-47.940 EPS. On average, sell-side analysts forecast that Transdigm Group will post 38.81 earnings per share for the current year.

Insider Activity

In other news, Director W. Howley sold 10,132 shares of Transdigm Group stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $1,236.28, for a total transaction of $12,525,988.96. Following the sale, the director owned 21,548 shares in the company, valued at approximately $26,639,361.44. The trade was a 31.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Joel Reiss sold 4,100 shares of the business's stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $1,128.04, for a total value of $4,624,964.00. Following the completion of the sale, the chief operating officer directly owned 3,600 shares of the company's stock, valued at $4,060,944. The trade was a 53.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 22,032 shares of company stock worth $26,250,979. Corporate insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On Transdigm Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Transdigm Group during the second quarter worth approximately $6,489,039,000. State Street Corp raised its position in Transdigm Group by 1.7% in the 2nd quarter. State Street Corp now owns 2,559,096 shares of the aerospace company's stock valued at $3,408,818,000 after purchasing an additional 42,490 shares during the last quarter. Soroban Capital Partners LP raised its position in Transdigm Group by 14.5% in 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 during the last quarter. Stockbridge Partners LLC acquired a new stake in Transdigm Group during the 2nd quarter worth $578,480,000. Finally, Primecap Management Co. CA acquired a new stake in Transdigm Group during the 2nd quarter worth $546,425,000. Hedge funds and other institutional investors own 95.78% of the company's stock.

Key Headlines Impacting Transdigm Group

These are some of the TDG headlines that stood out recently:

• Positive Sentiment: Fiscal Q4 sales increased 23% year over year to $2.99 billion, while adjusted EPS rose 15% to $12.44; both results topped estimates. Organic sales grew 14%, reflecting solid demand. Article: TransDigm's Q4 Earnings Surpass Estimates, Sales Increase Y/Y
• Positive Sentiment: Fiscal 2027 revenue guidance of $12.0 billion to $12.2 billion is above the $11.7 billion analyst consensus, pointing to continued growth across the company’s end markets. Article: TransDigm Group Sees Growth In FY27
• Positive Sentiment: TransDigm repurchased $2.75 billion of its stock during fiscal 2026, providing a significant return of capital to shareholders. Article: TransDigm: 3 Key Takeaways for Long-Term Investors

About Transdigm Group

TransDigm Group Incorporated designs, produces and supplies highly engineered components for the aerospace industry. Its products include mechanical and electromechanical systems, pumps, valves, ignition systems, batteries, power-conditioning devices and cockpit components. The company serves commercial, military and business aviation markets, supplying components for both original aircraft production and the aftermarket. Its products are used on aircraft operated around the world, and its aftermarket business provides replacement parts and related support.

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