Transdigm Group (NYSE:TDG) Stock Price Target Lowered at BMO Capital Markets

Key Points

• BMO Capital Markets lowered TransDigm’s price target from $1,525 to $1,400 while maintaining an “outperform” rating, implying about 26% upside from the stock’s $1,110.99 price. Analysts overall remain cautious, with a consensus “hold” rating and average target of $1,444.20.
• TransDigm exceeded quarterly expectations, reporting $10.87 in EPS versus the $10.30 estimate and $2.74 billion in revenue versus $2.68 billion expected. Revenue increased 22.5% year over year, and management issued fiscal 2026 EPS guidance of $40.62–$41.46.
• Insiders sold $33.9 million of shares during the latest quarter, while institutional investors own 95.78% of the company. The stock is trading near its one-year low of $1,071.25, below both its 50-day and 200-day moving averages.

Transdigm Group (NYSE:TDG - Get Free Report) had its price target decreased by analysts at BMO Capital Markets from $1,525.00 to $1,400.00 in a report issued on Monday. The firm presently has an "outperform" rating on the aerospace company's stock. BMO Capital Markets' price target would suggest a potential upside of 26.01% from the company's current price.

A number of other analysts have also recently commented on the company. Wall Street Zen cut Transdigm Group from a "buy" rating to a "hold" rating in a research report on Monday, July 20th. Melius Research reaffirmed a "hold" rating and set a $1,331.00 price target on shares of Transdigm Group in a research report on Monday, September 14th. UBS Group raised their price objective on shares of Transdigm Group from $1,585.00 to $1,695.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $1,350.00 target price on shares of Transdigm Group in a report on Wednesday, September 16th. Finally, 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. Five investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. According to data from MarketBeat.com, Transdigm Group currently has a consensus rating of "Hold" and an average target price of $1,444.20.

Transdigm Group Price Performance

Shares of NYSE TDG opened at $1,110.99 on Monday. The stock has a market cap of $62.14 billion, a P/E ratio of 33.71, a price-to-earnings-growth ratio of 1.85 and a beta of 0.91. The firm has a 50-day moving average of $1,189.18 and a 200 day moving average of $1,216.67. Transdigm Group has a 1 year low of $1,071.25 and a 1 year high of $1,463.03.

Transdigm Group (NYSE:TDG - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $10.87 earnings per share (EPS) for the quarter, beating 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 business had revenue of $2.74 billion during the quarter, compared to analysts' expectations of $2.68 billion. During the same quarter in the previous year, the business earned $9.60 earnings per share. The firm'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. Research analysts expect that Transdigm Group will post 38.87 earnings per share for the current fiscal year.

Insider Buying and Selling at Transdigm Group

In other news, COO Joel Reiss sold 3,900 shares of Transdigm Group stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $1,094.58, for a total value of $4,268,862.00. Following the completion of the transaction, the chief operating officer owned 3,600 shares in the company, valued at approximately $3,940,488. The trade was a 52.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director W. Howley sold 10,132 shares of the company's stock in a transaction dated 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 transaction, the director owned 21,548 shares in the company, valued at $26,639,361.44. The trade was a 31.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,064 shares of company stock valued at $33,947,338 in the last quarter. 3.20% of the stock is owned by company insiders.

Institutional Trading of Transdigm Group

Several institutional investors have recently added to or reduced their stakes in the company. Fisher Asset Management LLC raised its holdings in shares of Transdigm Group by 3.1% during the fourth quarter. Fisher Asset Management LLC now owns 299 shares of the aerospace company's stock worth $398,000 after purchasing an additional 9 shares during the last quarter. Harbour Investments Inc. raised its stake in shares of Transdigm Group by 13.6% during the 4th quarter. Harbour Investments Inc. now owns 75 shares of the aerospace company's stock worth $100,000 after buying an additional 9 shares during the period. Root Financial Partners LLC lifted its position in shares of Transdigm Group by 6.2% during the 4th quarter. Root Financial Partners LLC now owns 155 shares of the aerospace company's stock valued at $206,000 after buying an additional 9 shares in the last quarter. BNP Paribas raised its position in Transdigm Group by 0.6% during the fourth quarter. BNP Paribas now owns 1,726 shares of the aerospace company's stock worth $2,286,000 after acquiring an additional 10 shares during the period. Finally, Verus Capital Partners LLC grew its position in shares of Transdigm Group by 1.2% in the fourth quarter. Verus Capital Partners LLC now owns 856 shares of the aerospace company's stock valued at $1,138,000 after purchasing an additional 10 shares during the period. Institutional investors own 95.78% of the company's stock.

Transdigm Group Company Profile

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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