4,000 Shares in Transdigm Group Incorporated $TDG Purchased by Arrow Capital Management LLC

Key Points

• Arrow Capital Management initiated a new position in Transdigm Group during the fourth quarter, buying 4,000 shares worth about $5.32 million. The stake represents roughly 3.1% of the fund’s portfolio and is its 14th-largest holding.
• Several other large institutional investors also increased or added to TDG, and the article notes that 95.78% of the stock is owned by hedge funds and other institutions. Meanwhile, insiders have been active sellers, with COO Joel Reiss and Director W. Nicholas Howley both reducing their holdings.
• Transdigm shares were trading higher, and the company recently posted better-than-expected quarterly results, including EPS of $9.85 versus the $9.46 estimate and revenue growth of 18.3% year over year. Analysts currently rate the stock a Moderate Buy with a consensus price target of about $1,525.

Arrow Capital Management LLC purchased a new stake in Transdigm Group Incorporated (NYSE:TDG - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 4,000 shares of the aerospace company's stock, valued at approximately $5,319,000. Transdigm Group accounts for about 3.1% of Arrow Capital Management LLC's portfolio, making the stock its 14th largest position.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. Capital International Investors boosted its holdings in Transdigm Group by 0.9% in the 4th quarter. Capital International Investors now owns 6,544,423 shares of the aerospace company's stock valued at $8,702,655,000 after purchasing an additional 55,230 shares in the last quarter. Capital World Investors increased its position in Transdigm Group by 0.4% during the 4th quarter. Capital World Investors now owns 3,954,512 shares of the aerospace company's stock worth $5,258,898,000 after purchasing an additional 15,825 shares during the period. Capital Research Global Investors raised its stake in shares of Transdigm Group by 12.2% during the 4th quarter. Capital Research Global Investors now owns 2,476,661 shares of the aerospace company's stock worth $3,293,527,000 after buying an additional 268,824 shares in the last quarter. State Street Corp lifted its holdings in shares of Transdigm Group by 2.8% in the 4th quarter. State Street Corp now owns 2,456,186 shares of the aerospace company's stock valued at $3,266,359,000 after buying an additional 67,348 shares during the period. Finally, Norges Bank acquired a new stake in shares of Transdigm Group in the 4th quarter valued at approximately $1,025,591,000. 95.78% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Transdigm Group news, COO Joel Reiss sold 3,900 shares of the firm's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $1,154.09, for a total transaction of $4,500,951.00. Following the completion of the transaction, the chief operating officer owned 3,600 shares of the company's stock, valued at approximately $4,154,724. This trade represents a 52.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director W Nicholas Howley sold 10,132 shares of the business's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $1,180.82, for a total value of $11,964,068.24. Following the completion of the transaction, the director directly owned 21,548 shares of the company's stock, valued at approximately $25,444,309.36. This trade represents a 31.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 28,064 shares of company stock worth $34,276,401. 3.20% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on TDG. Susquehanna dropped their price objective on Transdigm Group from $1,400.00 to $1,350.00 and set a "neutral" rating on the stock in a report on Wednesday, May 6th. Weiss Ratings lowered shares of Transdigm Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 2nd. Stifel Nicolaus lowered their price target on shares of Transdigm Group from $1,650.00 to $1,525.00 and set a "buy" rating on the stock in a research note on Wednesday, May 6th. Wells Fargo & Company initiated coverage on shares of Transdigm Group in a report on Wednesday, April 1st. They issued an "equal weight" rating and a $1,200.00 price target for the company. Finally, Jefferies Financial Group raised their price objective on shares of Transdigm Group from $1,565.00 to $1,575.00 in a research note on Monday, May 11th. Ten research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat.com, Transdigm Group presently has an average rating of "Moderate Buy" and a consensus target price of $1,525.06.

Transdigm Group Trading Up 1.2%

Shares of TDG opened at $1,332.12 on Friday. Transdigm Group Incorporated has a 12-month low of $1,123.61 and a 12-month high of $1,623.82. The stock has a market cap of $74.51 billion, a P/E ratio of 41.58, a PEG ratio of 2.29 and a beta of 0.91. The company has a 50-day moving average of $1,222.41 and a two-hundred day moving average of $1,276.04.

Transdigm Group (NYSE:TDG - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The aerospace company reported $9.85 EPS for the quarter, beating the consensus estimate of $9.46 by $0.39. Transdigm Group had a net margin of 20.24% and a negative return on equity of 26.49%. The business had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.47 billion. During the same period in the prior year, the business earned $9.11 earnings per share. The company's quarterly revenue was up 18.3% on a year-over-year basis. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. As a group, analysts forecast that Transdigm Group Incorporated will post 37.99 EPS for the current fiscal year.

About Transdigm Group

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components and systems for commercial and military aerospace applications. The company's product portfolio covers a broad range of mission-critical parts and subsystems, including mechanical and electromechanical components, ignition and fuel system parts, sensors and actuators, cockpit and cabin systems, and other safety-critical hardware. TransDigm supplies original equipment manufacturers (OEMs) as well as the aftermarket, providing spare parts, repair and overhaul services and component support throughout an asset's life cycle.

TransDigm's operating model places emphasis on proprietary, niche components that are difficult to replace, and the company operates through a collection of independently run subsidiaries and brands that sell specialized products.

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