Wells Fargo & Company Has Lowered Expectations for Transdigm Group (NYSE:TDG) Stock Price

Key Points

• Wells Fargo lowered its TransDigm price target to $1,210 from $1,450 while maintaining an “equal weight” rating, implying about 10.9% upside from the stock’s reported price.
• TransDigm shares fell 0.8% to $1,090.78, near the lower end of their 52-week range. The stock has an average analyst rating of “Hold,” with a consensus price target of $1,444.87.
• The company exceeded quarterly expectations, reporting $10.87 in EPS and $2.74 billion in revenue, with revenue up 22.5% year over year. However, insiders have sold 28,064 shares worth approximately $33.9 million over the past 90 days.

Transdigm Group (NYSE:TDG - Get Free Report) had its target price decreased by Wells Fargo & Company from $1,450.00 to $1,210.00 in a research report issued on Wednesday, Benzinga reports. The brokerage presently has an "equal weight" rating on the aerospace company's stock. Wells Fargo & Company's price target indicates a potential upside of 10.93% from the stock's current price.

Several other brokerages also recently commented on TDG. Morgan Stanley downgraded Transdigm Group from an "overweight" rating to an "equal weight" rating and dropped their target price for the company from $1,680.00 to $1,345.00 in a report on Wednesday, July 15th. Stifel Nicolaus reissued a "hold" rating and set a $1,405.00 target price (down from $1,525.00) on shares of Transdigm Group in a research report on Wednesday, August 5th. UBS Group lifted their price target on shares of Transdigm Group from $1,585.00 to $1,695.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. BMO Capital Markets decreased their price objective on shares of Transdigm Group from $1,525.00 to $1,400.00 and set an "outperform" rating for the company in a research report on Monday. Finally, Wall Street Zen downgraded Transdigm Group from a "buy" rating to a "hold" rating in a research note on Monday, July 20th. Five research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $1,444.87.

Transdigm Group Stock Down 0.8%

Shares of NYSE TDG traded down $9.01 during midday trading on Wednesday, hitting $1,090.78. The stock had a trading volume of 40,527 shares, compared to its average volume of 394,434. Transdigm Group has a 1-year low of $1,071.25 and a 1-year high of $1,463.03. The company has a market capitalization of $61.01 billion, a price-to-earnings ratio of 33.11, a PEG ratio of 1.84 and a beta of 0.91. The company has a fifty day moving average price of $1,185.14 and a 200 day moving average price of $1,214.44.

Transdigm Group (NYSE:TDG - Get Free Report) last issued its earnings results on Tuesday, August 4th. The aerospace company reported $10.87 EPS for the quarter, beating analysts' consensus estimates of $10.30 by $0.57. Transdigm Group had a net margin of 19.69% and a negative return on equity of 23.65%. The business 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 firm posted $9.60 EPS. The business's revenue for the quarter 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. On average, research analysts forecast that Transdigm Group will post 38.87 EPS for the current year.

Insider Activity

In other Transdigm Group news, 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 value of $12,525,988.96. Following the sale, the director owned 21,548 shares in the company, valued at approximately $26,639,361.44. This trade represents a 31.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Joel Reiss sold 3,900 shares of Transdigm Group 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 value of $4,268,862.00. Following the sale, the chief operating officer directly owned 3,600 shares in the company, valued at approximately $3,940,488. This trade represents a 52.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 28,064 shares of company stock valued at $33,947,338 in the last 90 days. Insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in TDG. Capital International Investors raised its holdings in Transdigm Group by 0.9% during the fourth 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 in the last quarter. BlackRock Inc. bought a new position in Transdigm Group during the 2nd quarter valued at $6,489,039,000. Capital World Investors increased its position in shares of Transdigm Group by 0.4% during the 4th quarter. Capital World Investors now owns 3,954,512 shares of the aerospace company's stock valued at $5,258,898,000 after purchasing an additional 15,825 shares during the period. State Street Corp raised its stake in shares of Transdigm Group by 1.7% in the 2nd quarter. State Street Corp now owns 2,559,096 shares of the aerospace company's stock worth $3,408,818,000 after buying an additional 42,490 shares in the last quarter. Finally, Capital Research Global Investors lifted its holdings in shares of Transdigm Group by 12.2% in the fourth quarter. Capital Research Global Investors now owns 2,476,661 shares of the aerospace company's stock valued at $3,293,527,000 after buying an additional 268,824 shares during the period. Institutional investors and hedge funds own 95.78% of the company's stock.

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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