Altarock Partners LP Lowers Position in Transdigm Group Incorporated $TDG

Key Points

• Altarock Partners LP sold 20,654 shares of Transdigm Group, reducing its stake by 2.1%, but the company remains its largest holding at 27.3% of the portfolio.
• Transdigm Group recently reported $9.60 earnings per share for its latest quarter, falling short of the expected $9.75, while revenues increased by 9.3% year-over-year.
• The company announced a special dividend of $90.00 per share, increasing from the previous special dividend of $75.00, which will be paid on September 12th.

Altarock Partners LP cut its position in Transdigm Group Incorporated (NYSE:TDG - Free Report) by 2.1% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 979,950 shares of the aerospace company's stock after selling 20,654 shares during the period. Transdigm Group accounts for about 27.3% of Altarock Partners LP's investment portfolio, making the stock its biggest position. Altarock Partners LP owned 1.74% of Transdigm Group worth $1,355,555,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Winch Advisory Services LLC raised its stake in shares of Transdigm Group by 53.8% during the first quarter. Winch Advisory Services LLC now owns 20 shares of the aerospace company's stock worth $28,000 after buying an additional 7 shares during the last quarter. Rothschild Investment LLC raised its stake in shares of Transdigm Group by 13.1% during the first quarter. Rothschild Investment LLC now owns 69 shares of the aerospace company's stock worth $95,000 after buying an additional 8 shares during the last quarter. Balefire LLC raised its stake in shares of Transdigm Group by 4.9% during the first quarter. Balefire LLC now owns 171 shares of the aerospace company's stock worth $237,000 after buying an additional 8 shares during the last quarter. New Republic Capital LLC raised its stake in shares of Transdigm Group by 4.6% during the first quarter. New Republic Capital LLC now owns 183 shares of the aerospace company's stock worth $253,000 after buying an additional 8 shares during the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC raised its stake in shares of Transdigm Group by 3.7% during the first quarter. Pinnacle Wealth Management Advisory Group LLC now owns 225 shares of the aerospace company's stock worth $311,000 after buying an additional 8 shares during the last quarter. 95.78% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Transdigm Group

In related news, Director W Nicholas Howley sold 2,736 shares of the firm's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $1,569.86, for a total transaction of $4,295,136.96. Following the transaction, the director directly owned 21,548 shares of the company's stock, valued at approximately $33,827,343.28. This trade represents a 11.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Joel Reiss sold 3,000 shares of the firm's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $1,406.07, for a total transaction of $4,218,210.00. Following the transaction, the chief operating officer directly owned 3,600 shares in the company, valued at approximately $5,061,852. This represents a 45.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 66,932 shares of company stock worth $96,378,273 in the last quarter. 4.09% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of research firms recently weighed in on TDG. Morgan Stanley boosted their price target on shares of Transdigm Group from $1,575.00 to $1,750.00 and gave the stock an "overweight" rating in a research note on Thursday, July 17th. Citigroup upped their target price on shares of Transdigm Group from $1,635.00 to $1,795.00 and gave the company a "buy" rating in a research note on Monday, July 14th. UBS Group upped their target price on shares of Transdigm Group from $1,815.00 to $1,839.00 and gave the company a "buy" rating in a research note on Thursday, August 7th. Wall Street Zen raised shares of Transdigm Group from a "hold" rating to a "buy" rating in a research note on Saturday, May 17th. Finally, JPMorgan Chase & Co. upped their target price on shares of Transdigm Group from $1,480.00 to $1,500.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Nine equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $1,624.69.

Transdigm Group Stock Up 0.2%

TDG traded up $2.71 during trading hours on Friday, hitting $1,400.77. 311,909 shares of the company's stock were exchanged, compared to its average volume of 291,902. Transdigm Group Incorporated has a 1-year low of $1,183.60 and a 1-year high of $1,623.82. The stock's 50-day moving average is $1,496.57 and its two-hundred day moving average is $1,417.46. The stock has a market cap of $78.93 billion, a price-to-earnings ratio of 46.49, a PEG ratio of 2.95 and a beta of 1.07.

Transdigm Group (NYSE:TDG - Get Free Report) last announced its earnings results on Tuesday, August 5th. The aerospace company reported $9.60 EPS for the quarter, missing the consensus estimate of $9.75 by ($0.15). The business had revenue of $2.24 billion for the quarter, compared to analyst estimates of $2.29 billion. Transdigm Group had a negative return on equity of 35.27% and a net margin of 20.98%.The business's revenue for the quarter was up 9.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $9.00 EPS. Transdigm Group has set its FY 2025 guidance at 36.330-37.150 EPS. On average, equities research analysts anticipate that Transdigm Group Incorporated will post 35.13 EPS for the current year.

Transdigm Group Increases Dividend

The business also recently announced a special dividend, which will be paid on Friday, September 12th. Stockholders of record on Tuesday, September 2nd will be paid a dividend of $90.00 per share. The ex-dividend date is Tuesday, September 2nd. This is a boost from Transdigm Group's previous special dividend of $75.00.

Transdigm Group Company Profile

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems.