Transdigm Group Incorporated $TDG Stake Raised by Brasada Capital Management LP

Key Points

• Brasada Capital Management LP increased its stake in Transdigm Group by 30.7%, acquiring an additional 1,862 shares, bringing its total holdings to 7,918 shares valued at approximately $10.95 million.
• Several hedge funds, including Vontobel Holding Ltd. and Dynamic Advisor Solutions LLC, have recently bought new positions in Transdigm, indicating a trend of increasing institutional investment.
• Transdigm announced a special dividend of $90.00 per share, an increase from its previous special dividend, reflecting the company’s commitment to returning value to shareholders.

Brasada Capital Management LP boosted its stake in Transdigm Group Incorporated (NYSE:TDG - Free Report) by 30.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 7,918 shares of the aerospace company's stock after buying an additional 1,862 shares during the period. Transdigm Group accounts for approximately 2.1% of Brasada Capital Management LP's investment portfolio, making the stock its 15th largest holding. Brasada Capital Management LP's holdings in Transdigm Group were worth $10,953,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Keel Point LLC grew its stake in shares of Transdigm Group by 9.9% in the fourth quarter. Keel Point LLC now owns 210 shares of the aerospace company's stock worth $266,000 after purchasing an additional 19 shares in the last quarter. Alaethes Wealth LLC grew its stake in shares of Transdigm Group by 194.8% in the fourth quarter. Alaethes Wealth LLC now owns 1,421 shares of the aerospace company's stock worth $1,801,000 after purchasing an additional 939 shares in the last quarter. Ancora Advisors LLC grew its stake in shares of Transdigm Group by 10.6% in the fourth quarter. Ancora Advisors LLC now owns 6,824 shares of the aerospace company's stock worth $8,648,000 after purchasing an additional 655 shares in the last quarter. Alkeon Capital Management LLC grew its stake in shares of Transdigm Group by 25.5% in the fourth quarter. Alkeon Capital Management LLC now owns 245,791 shares of the aerospace company's stock worth $311,486,000 after purchasing an additional 50,000 shares in the last quarter. Finally, Ameriprise Financial Inc. grew its stake in shares of Transdigm Group by 3.1% in the fourth quarter. Ameriprise Financial Inc. now owns 209,729 shares of the aerospace company's stock worth $265,785,000 after purchasing an additional 6,374 shares in the last quarter. 95.78% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts recently weighed in on the company. Susquehanna raised their target price on Transdigm Group from $1,300.00 to $1,600.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Truist Financial raised their target price on Transdigm Group from $1,553.00 to $1,730.00 and gave the company a "buy" rating in a research note on Friday, July 11th. UBS Group raised their target price on 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. Citigroup raised their target price on 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. Finally, JPMorgan Chase & Co. raised their target price on 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 analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,624.69.

Transdigm Group Stock Performance

Shares of NYSE:TDG traded up $2.71 during midday trading on Monday, reaching $1,400.77. The company had a trading volume of 311,909 shares, compared to its average volume of 435,967. Transdigm Group Incorporated has a 1-year low of $1,183.60 and a 1-year high of $1,623.82. The firm has a market cap of $78.93 billion, a price-to-earnings ratio of 46.49, a price-to-earnings-growth ratio of 2.96 and a beta of 1.03. The company has a fifty day simple moving average of $1,495.14 and a two-hundred day simple moving average of $1,419.07.

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

Transdigm Group Increases Dividend

The business also recently declared a special dividend, which will be paid on Friday, September 12th. Investors of record on Tuesday, September 2nd will be given a $90.00 dividend. This is a positive change from Transdigm Group's previous special dividend of $75.00. The ex-dividend date is Tuesday, September 2nd.

Insiders Place Their Bets

In related news, CFO Sarah Wynne sold 3,200 shares of the stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $1,452.15, for a total value of $4,646,880.00. Following the completion of the sale, the chief financial officer directly owned 3,400 shares of the company's stock, valued at approximately $4,937,310. This represents a 48.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director W Nicholas Howley sold 2,736 shares of the stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $1,569.86, for a total value of $4,295,136.96. Following the completion of the sale, the director directly owned 21,548 shares of the company's stock, valued at approximately $33,827,343.28. This represents a 11.27% 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 over the last three months. Company insiders own 4.09% of the company's stock.

About Transdigm Group

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.