Capital International Investors Raises Stake in Transdigm Group Incorporated $TDG

Key Points

• Capital International Investors increased its TransDigm stake by 0.9% in Q4, ending with 6.54 million shares and about 11.6% ownership of the aerospace company.
• TransDigm reported strong quarterly earnings, posting $9.85 EPS versus $9.46 expected and revenue of $2.54 billion, up 18.3% year over year.
• Despite the earnings beat, insider selling and mixed analyst views remain in focus, with the stock seeing recent sales by executives and a consensus Wall Street rating of “Moderate Buy.”

Capital International Investors boosted its stake in Transdigm Group Incorporated (NYSE:TDG - Free Report) by 0.9% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 6,544,423 shares of the aerospace company's stock after purchasing an additional 55,230 shares during the quarter. Transdigm Group comprises 1.4% of Capital International Investors' portfolio, making the stock its 15th largest position. Capital International Investors owned about 11.59% of Transdigm Group worth $8,702,655,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently bought and sold shares of the stock. Empowered Funds LLC lifted its position in Transdigm Group by 5.0% during the first quarter. Empowered Funds LLC now owns 1,372 shares of the aerospace company's stock valued at $1,898,000 after buying an additional 65 shares in the last quarter. Acadian Asset Management LLC lifted its position in Transdigm Group by 92.3% during the first quarter. Acadian Asset Management LLC now owns 273 shares of the aerospace company's stock valued at $376,000 after buying an additional 131 shares in the last quarter. NewEdge Advisors LLC lifted its position in Transdigm Group by 152.9% during the second quarter. NewEdge Advisors LLC now owns 2,064 shares of the aerospace company's stock valued at $3,138,000 after buying an additional 1,248 shares in the last quarter. Sei Investments Co. lifted its position in Transdigm Group by 25.4% during the second quarter. Sei Investments Co. now owns 33,032 shares of the aerospace company's stock valued at $50,227,000 after buying an additional 6,697 shares in the last quarter. Finally, Treasurer of the State of North Carolina lifted its position in Transdigm Group by 3.6% during the second quarter. Treasurer of the State of North Carolina now owns 25,821 shares of the aerospace company's stock valued at $39,264,000 after buying an additional 902 shares in the last quarter. 95.78% of the stock is currently owned by hedge funds and other institutional investors.

Transdigm Group Price Performance

TDG stock opened at $1,241.05 on Friday. Transdigm Group Incorporated has a 1-year low of $1,123.61 and a 1-year high of $1,623.82. The firm has a fifty day moving average price of $1,203.10 and a two-hundred day moving average price of $1,281.43. The firm has a market cap of $69.41 billion, a price-to-earnings ratio of 38.73, a PEG ratio of 2.17 and a beta of 0.91.

Transdigm Group (NYSE:TDG - Get Free Report) last released its earnings results on Tuesday, May 5th. The aerospace company reported $9.85 earnings per share for the quarter, beating 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 net margin of 20.24% and a negative return on equity of 26.49%. The firm's revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $9.11 earnings per share. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. As a group, analysts expect that Transdigm Group Incorporated will post 37.82 EPS for the current fiscal year.

Insider Activity

In other news, COO Joel Reiss sold 3,900 shares of the company's 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 in the company, valued at approximately $4,154,724. This represents a 52.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director W Nicholas Howley sold 10,132 shares of the company's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1,213.05, for a total transaction of $12,290,622.60. Following the completion of the sale, the director directly owned 21,548 shares of the company's stock, valued at $26,138,801.40. The trade was a 31.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 42,096 shares of company stock valued at $51,417,454 in the last 90 days. Insiders own 3.20% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Royal Bank Of Canada reduced their target price on shares of Transdigm Group from $1,400.00 to $1,350.00 and set a "sector perform" rating on the stock in a research report on Wednesday, May 6th. UBS Group reduced their target price on shares of Transdigm Group from $1,745.00 to $1,645.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Wells Fargo & Company assumed coverage on shares of Transdigm Group in a research report on Wednesday, April 1st. They set an "equal weight" rating and a $1,200.00 target price on the stock. BMO Capital Markets reduced their target price on shares of Transdigm Group from $1,550.00 to $1,450.00 and set an "outperform" rating on the stock in a research report on Tuesday, March 31st. Finally, Stifel Nicolaus reduced their target price on shares of Transdigm Group from $1,650.00 to $1,525.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Ten investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat, Transdigm Group currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,524.18.

Transdigm Group Company Profile

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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