Rational Advisors Inc. Has $3.88 Million Stake in Transdigm Group Incorporated $TDG

Key Points

• Rational Advisors Inc. dramatically increased its stake in TransDigm Group by 18,131.3% in the fourth quarter, ending with 2,917 shares valued at about $3.88 million.
• TransDigm reported strong quarterly results, with EPS of $9.85 beating estimates and revenue of $2.54 billion also topping expectations; revenue rose 18.3% year over year.
• Insider selling was notable, as Director W. Nicholas Howley and COO Joel Reiss both sold shares, while analysts currently rate the stock a Moderate Buy with an average target price of $1,524.18.

Rational Advisors Inc. boosted its position in Transdigm Group Incorporated (NYSE:TDG - Free Report) by 18,131.3% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,917 shares of the aerospace company's stock after buying an additional 2,901 shares during the period. Rational Advisors Inc.'s holdings in Transdigm Group were worth $3,879,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Ares Financial Consulting LLC acquired a new position in Transdigm Group in the fourth quarter valued at $25,000. Elyxium Wealth LLC acquired a new position in Transdigm Group in the fourth quarter valued at $25,000. Elevation Wealth Partners LLC lifted its holdings in Transdigm Group by 1,100.0% in the fourth quarter. Elevation Wealth Partners LLC now owns 24 shares of the aerospace company's stock valued at $32,000 after buying an additional 22 shares during the period. Central Pacific Bank Trust Division lifted its holdings in Transdigm Group by 44.4% in the fourth quarter. Central Pacific Bank Trust Division now owns 26 shares of the aerospace company's stock valued at $35,000 after buying an additional 8 shares during the period. Finally, Wealth Watch Advisors INC acquired a new position in Transdigm Group in the third quarter valued at $34,000. Institutional investors and hedge funds own 95.78% of the company's stock.

Transdigm Group Trading Up 0.4%

TDG opened at $1,242.78 on Wednesday. Transdigm Group Incorporated has a 1-year low of $1,123.61 and a 1-year high of $1,623.82. The company has a market cap of $69.51 billion, a P/E ratio of 38.79, a price-to-earnings-growth ratio of 2.17 and a beta of 0.91. The company has a fifty day moving average price of $1,197.61 and a two-hundred day moving average price of $1,283.75.

Transdigm Group (NYSE:TDG - Get Free Report) last posted its earnings results 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 company had revenue of $2.54 billion during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period in the previous year, the firm posted $9.11 earnings per share. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. On average, research analysts forecast that Transdigm Group Incorporated will post 37.82 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Weiss Ratings downgraded shares of Transdigm Group from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, April 13th. Susquehanna decreased their price target on shares of Transdigm Group from $1,400.00 to $1,350.00 and set a "neutral" rating for the company in a research note on Wednesday, May 6th. BNP Paribas Exane decreased their price target on shares of Transdigm Group from $1,800.00 to $1,750.00 and set an "outperform" rating for the company in a research note on Thursday, May 14th. Morgan Stanley lifted their price target on shares of Transdigm Group from $1,660.00 to $1,680.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Finally, UBS Group decreased their price target on shares of Transdigm Group from $1,745.00 to $1,645.00 and set a "buy" rating for the company in a research note on Wednesday, May 6th. Ten research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $1,524.18.

Insider Activity

In other news, Director W Nicholas Howley sold 10,132 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $1,180.82, for a total transaction of $11,964,068.24. Following the completion of the sale, the director directly owned 21,548 shares of the company's stock, valued at $25,444,309.36. The trade was a 31.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Joel Reiss sold 3,900 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $1,154.09, for a total transaction of $4,500,951.00. Following the sale, the chief operating officer directly owned 3,600 shares of the company's stock, valued at approximately $4,154,724. The trade was a 52.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 42,096 shares of company stock valued at $51,417,454. 3.20% of the stock is currently owned by insiders.

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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