Rakuten Investment Management Inc. Has $9.74 Million Holdings in Transdigm Group Incorporated $TDG

Key Points

• Rakuten Investment Management cut its Transdigm Group stake by 59.5% in the fourth quarter, selling 10,854 shares and leaving it with 7,402 shares valued at about $9.74 million.
• Several other large institutional investors increased positions, and hedge funds and institutions now own 95.78% of Transdigm’s stock.
• Transdigm reported better-than-expected quarterly results, with $9.85 EPS and $2.54 billion in revenue, while analysts currently rate the stock a Moderate Buy with an average price target of $1,525.06.

Rakuten Investment Management Inc. lessened its holdings in shares of Transdigm Group Incorporated (NYSE:TDG - Free Report) by 59.5% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 7,402 shares of the aerospace company's stock after selling 10,854 shares during the period. Rakuten Investment Management Inc.'s holdings in Transdigm Group were worth $9,741,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings 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 worth $8,982,225,000 after purchasing an additional 121,049 shares during the period. Capital International Investors lifted its holdings in shares of Transdigm Group by 0.9% during the fourth quarter. Capital International Investors now owns 6,544,423 shares of the aerospace company's stock worth $8,702,655,000 after purchasing an additional 55,230 shares during the period. Capital World Investors lifted its holdings in shares of Transdigm Group by 0.4% during the fourth quarter. Capital World Investors now owns 3,954,512 shares of the aerospace company's stock worth $5,258,898,000 after purchasing an additional 15,825 shares during the period. Capital Research Global Investors lifted its holdings in shares of Transdigm Group by 12.2% during the fourth quarter. Capital Research Global Investors now owns 2,476,661 shares of the aerospace company's stock worth $3,293,527,000 after purchasing an additional 268,824 shares during the period. Finally, State Street Corp lifted its holdings in shares of Transdigm Group by 2.8% during the fourth quarter. State Street Corp now owns 2,456,186 shares of the aerospace company's stock worth $3,266,359,000 after purchasing an additional 67,348 shares during the period. Institutional investors and hedge funds own 95.78% of the company's stock.

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 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director W Nicholas Howley sold 10,132 shares of the company's stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $1,265.06, for a total transaction 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. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,064 shares of company stock worth $34,276,401 in the last quarter. Company insiders own 3.20% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently commented on TDG. JPMorgan Chase & Co. lifted their price target on shares of Transdigm Group from $1,440.00 to $1,450.00 and gave the stock a "neutral" rating in a report on Monday. Jefferies Financial Group lifted their price target on shares of Transdigm Group from $1,565.00 to $1,575.00 in a report on Monday, May 11th. Wells Fargo & Company began coverage on shares of Transdigm Group in a report on Wednesday, April 1st. They issued an "equal weight" rating and a $1,200.00 target price on the stock. Morgan Stanley boosted their target price on shares of Transdigm Group from $1,660.00 to $1,680.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Finally, BNP Paribas Exane dropped their target price on shares of Transdigm Group from $1,800.00 to $1,750.00 and set an "outperform" rating on the stock in a report on Thursday, May 14th. Ten research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $1,525.06.

Transdigm Group Stock Up 2.0%

TDG stock opened at $1,303.24 on Wednesday. The firm has a market cap of $72.89 billion, a price-to-earnings ratio of 40.68, a PEG ratio of 2.24 and a beta of 0.91. Transdigm Group Incorporated has a 12-month low of $1,123.61 and a 12-month high of $1,623.82. The company's fifty day simple moving average is $1,216.62 and its 200 day simple moving average is $1,276.50.

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 (EPS) for the quarter, beating the consensus estimate of $9.46 by $0.39. The business had revenue of $2.54 billion for 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%. Transdigm Group's revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $9.11 earnings per share. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. Research analysts expect that Transdigm Group Incorporated will post 37.82 earnings per share for the current 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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