Hsbc Holdings PLC Decreases Holdings in Transdigm Group Incorporated $TDG

Key Points

• HSBC Holdings PLC reduced its Transdigm Group stake by 5.5% in the fourth quarter, selling 5,190 shares and ending with 88,888 shares valued at about $118.2 million.
• Insider selling has also been notable, with COO Joel Reiss and Director W. Nicholas Howley both trimming their holdings. Over the last 90 days, insiders sold 31,964 shares worth about $39.3 million.
• Transdigm reported better-than-expected quarterly results, with EPS of $9.85 topping estimates and revenue rising 18.3% year over year to $2.54 billion. Analysts currently rate the stock a Moderate Buy with an average price target of about $1,525.06.

Hsbc Holdings PLC trimmed its position in Transdigm Group Incorporated (NYSE:TDG - Free Report) by 5.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 88,888 shares of the aerospace company's stock after selling 5,190 shares during the period. Hsbc Holdings PLC owned approximately 0.16% of Transdigm Group worth $118,236,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Pure Financial Advisors LLC acquired a new stake in shares of Transdigm Group in the 4th quarter worth $280,000. S Harris Financial Group LLC acquired a new stake in Transdigm Group during the 4th quarter valued at approximately $283,000. NWF Advisory Services Inc. boosted its holdings in shares of Transdigm Group by 8.5% in the 4th quarter. NWF Advisory Services Inc. now owns 498 shares of the aerospace company's stock valued at $662,000 after acquiring an additional 39 shares during the last quarter. Anchor Investment Management LLC acquired a new stake in shares of Transdigm Group in the fourth quarter worth $1,479,000. Finally, Sit Investment Associates Inc. raised its holdings in shares of Transdigm Group by 20.3% during the fourth quarter. Sit Investment Associates Inc. now owns 2,065 shares of the aerospace company's stock worth $2,746,000 after purchasing an additional 349 shares during the last quarter. 95.78% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, COO Joel Reiss sold 3,900 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $1,276.78, for a total value of $4,979,442.00. Following the completion of the transaction, the chief operating officer owned 3,600 shares of the company's stock, valued at approximately $4,596,408. This represents a 52.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director W Nicholas Howley sold 10,132 shares of the stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $1,265.06, for a total value of $12,817,587.92. Following the transaction, the director owned 21,548 shares in the company, valued at $27,259,512.88. This represents a 31.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 31,964 shares of company stock valued at $39,255,843. 3.20% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities research analysts have commented on TDG shares. TD Cowen lowered their price target on shares of Transdigm Group from $1,565.00 to $1,450.00 and set a "buy" rating on the stock in a report on Wednesday, April 8th. Royal Bank Of Canada reduced their price objective on Transdigm Group from $1,400.00 to $1,350.00 and set a "sector perform" rating for the company in a research note on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price objective on Transdigm Group from $1,440.00 to $1,450.00 and gave the company a "neutral" rating in a report on Monday, June 15th. Wells Fargo & Company started coverage on Transdigm Group in a research note on Wednesday, April 1st. They issued an "equal weight" rating and a $1,200.00 target price on the stock. Finally, UBS Group dropped their target price on Transdigm Group from $1,745.00 to $1,645.00 and set a "buy" rating on the stock in a report on Wednesday, May 6th. Ten analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $1,525.06.

Transdigm Group Stock Performance

TDG stock opened at $1,332.12 on Monday. The firm has a market cap of $74.51 billion, a PE ratio of 41.58, a P/E/G ratio of 2.31 and a beta of 0.91. The firm's fifty day moving average is $1,224.66 and its 200 day moving average is $1,275.89. Transdigm Group Incorporated has a one year low of $1,123.61 and a one year high of $1,623.82.

Transdigm Group (NYSE:TDG - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The aerospace company reported $9.85 earnings per share for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $2.47 billion. During the same quarter in the prior year, the firm posted $9.11 earnings per share. The company's revenue was up 18.3% compared to the same quarter last year. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. Research analysts predict that Transdigm Group Incorporated will post 37.99 earnings per share for the current fiscal year.

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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