Transdigm Group (NYSE:TDG) Stock Price Target Cut by Morgan Stanley

Key Points

• Morgan Stanley cut TransDigm’s price target from $1,400 to $1,300 while maintaining an “equal weight” rating, implying 13.86% upside from the prior close.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $1,428.40; five analysts rate the stock a Buy versus 13 Holds.
• TransDigm shares rose 0.2% to $1,141.75, while the company reported quarterly revenue growth of 22.5% and EPS of $10.87, exceeding analyst estimates. Insiders have sold roughly $26.3 million worth of shares over the past 90 days.

Transdigm Group (NYSE:TDG - Get Free Report) had its target price cut by analysts at Morgan Stanley from $1,400.00 to $1,300.00 in a report released on Monday, Benzinga reports. The firm presently has an "equal weight" rating on the aerospace company's stock. Morgan Stanley's target price points to a potential upside of 13.86% from the company's previous close.

A number of other equities analysts also recently commented on the stock. Melius Research reaffirmed a "hold" rating and issued a $1,331.00 price objective on shares of Transdigm Group in a report on Monday, September 14th. Wall Street Zen cut shares of Transdigm Group from a "buy" rating to a "hold" rating in a report on Monday, July 20th. Wells Fargo & Company reduced their price target on shares of Transdigm Group from $1,450.00 to $1,210.00 and set an "equal weight" rating on the stock in a research report on Wednesday, September 30th. Guggenheim started coverage on shares of Transdigm Group in a report on Tuesday, September 15th. They issued a "neutral" rating for the company. Finally, UBS Group lifted their price target on shares of Transdigm Group from $1,585.00 to $1,695.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Five analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company's stock. According to data from MarketBeat, Transdigm Group presently has a consensus rating of "Hold" and an average target price of $1,428.40.

Transdigm Group Trading Up 0.2%

NYSE TDG traded up $2.41 on Monday, hitting $1,141.75. 107,910 shares of the stock traded hands, compared to its average volume of 391,320. The stock has a 50-day moving average of $1,146.42 and a 200 day moving average of $1,207.36. Transdigm Group has a twelve month low of $1,071.25 and a twelve month high of $1,463.03. The company has a market capitalization of $63.86 billion, a P/E ratio of 34.63, a price-to-earnings-growth ratio of 1.61 and a beta of 0.96.

Transdigm Group (NYSE:TDG - Get Free Report) last released its earnings results on Tuesday, August 4th. The aerospace company reported $10.87 EPS for the quarter, topping analysts' consensus estimates of $10.30 by $0.57. Transdigm Group had a negative return on equity of 23.65% and a net margin of 19.69%. The company had revenue of $2.74 billion for the quarter, compared to the consensus estimate of $2.68 billion. During the same quarter last year, the business posted $9.60 EPS. Transdigm Group's quarterly revenue was up 22.5% compared to the same quarter last year. Transdigm Group has set its FY 2026 guidance at 40.620-41.460 EPS. As a group, equities research analysts expect that Transdigm Group will post 38.88 earnings per share for the current year.

Insider Buying and Selling

In related news, Director W. Howley sold 10,132 shares of the company's stock in a transaction on 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 completion of the transaction, the director directly owned 21,548 shares in the company, valued at $26,639,361.44. This represents a 31.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Joel Reiss sold 4,100 shares of the stock in a transaction on Thursday, October 15th. The stock was 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 in the company, valued at $4,060,944. This represents a 53.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 22,032 shares of company stock valued at $26,250,979 in the last 90 days. Insiders own 3.20% of the company's stock.

Institutional Trading of Transdigm Group

Several hedge funds have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in Transdigm Group in the 2nd quarter worth approximately $6,489,039,000. State Street Corp raised its stake in Transdigm Group by 1.7% during 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 period. Soroban Capital Partners LP lifted its holdings in shares of Transdigm Group by 14.5% in the first 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. Stockbridge Partners LLC purchased a new stake in shares of Transdigm Group in the second quarter valued at $578,480,000. Finally, Primecap Management Co. CA purchased a new stake in shares of Transdigm Group in the second quarter valued at $546,425,000. 95.78% of the stock is currently owned by institutional investors.

Transdigm Group Company Profile

TransDigm Group Incorporated NYSE: TDG is a global aerospace manufacturing company that designs, produces and supplies aircraft components, systems and related products. Its portfolio includes mechanical and electrical systems, cockpit and cabin products, airframe components, power and control systems, engine components, and other specialized equipment used in commercial, business and general aviation, and military aircraft.

The company serves aircraft manufacturers, airlines, aircraft operators, maintenance providers and defense customers.

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