Avalon Capital Management Raises Position in Transdigm Group Incorporated $TDG

Key Points

• Avalon Capital Management increased its TransDigm position by 309.1% in the fourth quarter, owning 2,782 shares worth about $3.7 million after adding 2,102 shares.
• TransDigm remains heavily owned by institutions, with 95.78% of shares held by institutional investors, while several analysts still rate the stock positively with a consensus “Moderate Buy” and average price target of $1,524.18.
• Insiders have been selling shares recently, including COO Joel Reiss and Director W. Nicholas Howley; the company also reported strong quarterly results with EPS and revenue beating estimates and raised full-year guidance.

Avalon Capital Management boosted its position in Transdigm Group Incorporated (NYSE:TDG - Free Report) by 309.1% during the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 2,782 shares of the aerospace company's stock after acquiring an additional 2,102 shares during the period. Avalon Capital Management's holdings in Transdigm Group were worth $3,700,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. Vanguard Group Inc. increased its position in shares of Transdigm Group by 1.8% during the third quarter. Vanguard Group Inc. now owns 6,814,938 shares of the aerospace company's stock valued at $8,982,225,000 after buying an additional 121,049 shares during the period. Capital International Investors grew its position in Transdigm Group by 4.1% during the 3rd quarter. Capital International Investors now owns 6,489,193 shares of the aerospace company's stock worth $8,552,028,000 after acquiring an additional 254,750 shares during the last quarter. State Street Corp grew its holdings in shares of Transdigm Group by 1.9% in the third quarter. State Street Corp now owns 2,388,838 shares of the aerospace company's stock worth $3,148,536,000 after purchasing an additional 45,550 shares during the last quarter. Capital Research Global Investors raised its stake in shares of Transdigm Group by 10.2% during the third quarter. Capital Research Global Investors now owns 2,207,837 shares of the aerospace company's stock valued at $2,909,850,000 after acquiring an additional 203,997 shares during the last quarter. Finally, Norges Bank bought a new position in Transdigm Group during the 4th quarter valued at approximately $1,025,591,000. 95.78% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on TDG. BNP Paribas Exane cut their price objective on Transdigm Group from $1,800.00 to $1,750.00 and set an "outperform" rating on the stock in a research report on Thursday, May 14th. Wells Fargo & Company began coverage on Transdigm Group in a report on Wednesday, April 1st. They set an "equal weight" rating and a $1,200.00 target price for the company. TD Cowen dropped their target price on shares of Transdigm Group from $1,565.00 to $1,450.00 and set a "buy" rating for the company in a research report on Wednesday, April 8th. Robert W. Baird reaffirmed a "neutral" rating and issued a $1,400.00 price target on shares of Transdigm Group in a research note on Wednesday, February 4th. Finally, Jefferies Financial Group boosted their price target on Transdigm Group from $1,565.00 to $1,575.00 in a research report on Monday, May 11th. Ten investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $1,524.18.

Insiders Place Their Bets

In other Transdigm Group news, COO Joel Reiss sold 3,900 shares of the stock in a transaction dated Friday, May 15th. The shares were 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 $4,154,724. This represents a 52.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director W Nicholas Howley sold 10,132 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $1,180.82, for a total value of $11,964,068.24. Following the transaction, the director directly owned 21,548 shares of the company's stock, valued at approximately $25,444,309.36. 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 sold a total of 42,096 shares of company stock valued at $51,417,454 in the last quarter. 3.20% of the stock is currently owned by company insiders.

Transdigm Group Stock Down 2.9%

Transdigm Group stock opened at $1,211.39 on Thursday. Transdigm Group Incorporated has a 52-week low of $1,123.61 and a 52-week high of $1,623.82. The business has a 50-day simple moving average of $1,200.05 and a two-hundred day simple moving average of $1,282.50. The company has a market cap of $67.75 billion, a P/E ratio of 37.81, a P/E/G ratio of 2.18 and a beta of 0.91.

Transdigm Group (NYSE:TDG - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The aerospace company reported $9.85 EPS for the quarter, topping the consensus estimate of $9.46 by $0.39. The firm had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.47 billion. Transdigm Group had a negative return on equity of 26.49% and a net margin of 20.24%.Transdigm Group's revenue was up 18.3% on a year-over-year basis. During the same period in the prior year, the business posted $9.11 EPS. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. Research analysts anticipate that Transdigm Group Incorporated will post 37.82 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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