Vulcan Value Partners LLC Increases Stake in Transdigm Group Incorporated (NYSE:TDG)

Key Points

• Vulcan Value Partners LLC increased its stake in Transdigm Group by 5.6%, making it the 4th largest position in their portfolio, representing approximately 6.5% of their holdings.
• Insider trading activity saw COO Joel Reiss and Director W Nicholas Howley significantly reduce their holdings by 45.45% and 69.56% respectively, selling thousands of shares for a total exceeding $76 million.
• Several analysts have upgraded Transdigm Group's stock with a consensus rating of "Moderate Buy" and an average price target of $1,606.47, reflecting positive sentiment among investment professionals.

Vulcan Value Partners LLC grew its holdings in Transdigm Group Incorporated (NYSE:TDG - Free Report) by 5.6% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 249,026 shares of the aerospace company's stock after purchasing an additional 13,286 shares during the period. Transdigm Group comprises approximately 6.5% of Vulcan Value Partners LLC's investment portfolio, making the stock its 4th biggest holding. Vulcan Value Partners LLC owned approximately 0.44% of Transdigm Group worth $344,543,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. GAMMA Investing LLC boosted its position in Transdigm Group by 177,412.3% during the first quarter. GAMMA Investing LLC now owns 1,240,811 shares of the aerospace company's stock worth $1,716,401,000 after purchasing an additional 1,240,112 shares during the period. Edgewood Management LLC bought a new position in Transdigm Group during the fourth quarter worth $399,595,000. Capital World Investors boosted its position in Transdigm Group by 4.3% during the fourth quarter. Capital World Investors now owns 3,791,927 shares of the aerospace company's stock worth $4,805,434,000 after purchasing an additional 155,541 shares during the period. Capital Research Global Investors boosted its position in Transdigm Group by 4.8% during the fourth quarter. Capital Research Global Investors now owns 1,911,128 shares of the aerospace company's stock worth $2,421,979,000 after purchasing an additional 87,309 shares during the period. Finally, Marshall Wace LLP boosted its position in Transdigm Group by 343.2% during the fourth quarter. Marshall Wace LLP now owns 97,858 shares of the aerospace company's stock worth $124,013,000 after purchasing an additional 75,780 shares during the period. 95.78% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, COO Joel Reiss sold 3,000 shares of the company's stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $1,434.35, for a total value of $4,303,050.00. Following the completion of the transaction, the chief operating officer owned 3,600 shares of the company's stock, valued at $5,163,660. This represents a 45.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Robert J. Small sold 45,700 shares of the company's stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $1,425.01, for a total value of $65,122,957.00. Following the completion of the transaction, the director directly owned 88,419 shares of the company's stock, valued at $125,997,959.19. This represents a 34.07% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 119,113 shares of company stock valued at $173,419,391. Corporate insiders own 4.09% of the company's stock.

Transdigm Group Trading Down 1.6%

NYSE TDG traded down $25.70 during trading on Friday, hitting $1,582.76. 322,169 shares of the company's stock were exchanged, compared to its average volume of 205,673. The company has a market cap of $88.90 billion, a PE ratio of 53.44, a P/E/G ratio of 3.25 and a beta of 1.07. Transdigm Group Incorporated has a fifty-two week low of $1,176.31 and a fifty-two week high of $1,623.82. The stock's 50 day moving average price is $1,507.98 and its two-hundred day moving average price is $1,406.48.

Transdigm Group (NYSE:TDG - Get Free Report) last issued its earnings results on Tuesday, May 6th. The aerospace company reported $9.11 EPS for the quarter, topping the consensus estimate of $8.83 by $0.28. The firm had revenue of $2.15 billion during the quarter, compared to the consensus estimate of $2.17 billion. Transdigm Group had a negative return on equity of 38.71% and a net margin of 21.09%. The business's quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $7.99 earnings per share. Analysts forecast that Transdigm Group Incorporated will post 35.13 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. KeyCorp lifted their price objective on shares of Transdigm Group from $1,500.00 to $1,700.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 2nd. Northcoast Research raised shares of Transdigm Group from a "neutral" rating to a "buy" rating and set a $1,500.00 target price for the company in a research report on Wednesday, April 9th. Wall Street Zen raised shares of Transdigm Group from a "hold" rating to a "buy" rating in a research report on Saturday, May 17th. Stifel Nicolaus started coverage on shares of Transdigm Group in a research report on Tuesday, June 24th. They issued a "buy" rating and a $1,710.00 target price for the company. Finally, UBS Group boosted their target price on shares of Transdigm Group from $1,451.00 to $1,645.00 and gave the company a "buy" rating in a research report on Wednesday, May 7th. Four equities research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $1,606.47.

Transdigm Group Profile

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.