Transdigm Group Incorporated $TDG Shares Bought by Capital International Investors

Key Points

• Capital International Investors increased its stake in Transdigm to 6,489,193 shares (about 11.52% of the company) after a 4.1% Q3 buy, valuing the position at roughly $8.55 billion and making TDG its 16th largest holding.
• Quarterly results and outlook: Transdigm beat estimates with $8.23 EPS and $2.29B revenue (up 13.9% YoY) and set FY2026 guidance of 37.42–39.34 EPS
• Significant insider selling: Insiders have sold 121,248 shares worth $168.8M in the last 90 days (including the COO and a director), leaving insiders with just 3.20% ownership while institutional ownership is about 95.78%.

Capital International Investors raised its position in shares of Transdigm Group Incorporated (NYSE:TDG - Free Report) by 4.1% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 6,489,193 shares of the aerospace company's stock after purchasing an additional 254,750 shares during the quarter. Transdigm Group accounts for 1.4% of Capital International Investors' portfolio, making the stock its 16th largest position. Capital International Investors owned approximately 11.52% of Transdigm Group worth $8,552,028,000 at the end of the most recent reporting period.

Several other institutional investors have also recently modified their holdings of the company. Leonard Rickey Investment Advisors P.L.L.C. boosted its position in Transdigm Group by 4.4% in the third quarter. Leonard Rickey Investment Advisors P.L.L.C. now owns 188 shares of the aerospace company's stock valued at $248,000 after buying an additional 8 shares during the last quarter. Gateway Investment Advisers LLC raised its position in Transdigm Group by 0.7% during the 3rd quarter. Gateway Investment Advisers LLC now owns 1,182 shares of the aerospace company's stock worth $1,558,000 after buying an additional 8 shares during the last quarter. Tower Wealth Partners Inc. lifted its stake in Transdigm Group by 4.5% during the 3rd quarter. Tower Wealth Partners Inc. now owns 187 shares of the aerospace company's stock valued at $246,000 after acquiring an additional 8 shares during the period. Zions Bancorporation National Association UT lifted its stake in Transdigm Group by 15.5% during the 2nd quarter. Zions Bancorporation National Association UT now owns 67 shares of the aerospace company's stock valued at $102,000 after acquiring an additional 9 shares during the period. Finally, Foundations Investment Advisors LLC boosted its holdings in shares of Transdigm Group by 5.1% in the 2nd quarter. Foundations Investment Advisors LLC now owns 186 shares of the aerospace company's stock valued at $283,000 after acquiring an additional 9 shares during the last quarter. 95.78% of the stock is currently owned by hedge funds and other institutional investors.

Transdigm Group Stock Performance

TDG opened at $1,277.26 on Tuesday. Transdigm Group Incorporated has a fifty-two week low of $1,183.60 and a fifty-two week high of $1,623.82. The company has a fifty day moving average of $1,351.90 and a two-hundred day moving average of $1,326.84. The stock has a market capitalization of $72.13 billion, a price-to-earnings ratio of 41.10, a PEG ratio of 2.71 and a beta of 0.93.

Transdigm Group (NYSE:TDG - Get Free Report) last posted its earnings results on Tuesday, February 3rd. The aerospace company reported $8.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.99 by $0.24. Transdigm Group had a net margin of 20.50% and a negative return on equity of 29.07%. The business had revenue of $2.29 billion for the quarter, compared to analyst estimates of $2.26 billion. During the same period in the prior year, the company posted $7.83 EPS. The company's revenue for the quarter was up 13.9% on a year-over-year basis. Transdigm Group has set its FY 2026 guidance at 37.420-39.340 EPS. On average, equities research analysts forecast that Transdigm Group Incorporated will post 35.13 earnings per share for the current year.

Analyst Ratings Changes

TDG has been the subject of several recent research reports. Stifel Nicolaus reduced their target price on shares of Transdigm Group from $1,710.00 to $1,650.00 and set a "buy" rating for the company in a report on Thursday, November 13th. UBS Group cut their price target on Transdigm Group from $1,804.00 to $1,800.00 and set a "buy" rating on the stock in a research report on Wednesday, February 4th. JPMorgan Chase & Co. lifted their price objective on Transdigm Group from $1,405.00 to $1,435.00 and gave the company a "neutral" rating in a research note on Friday, November 14th. KeyCorp downgraded Transdigm Group from an "overweight" rating to a "sector weight" rating in a research note on Thursday, February 5th. Finally, Robert W. Baird reaffirmed a "neutral" rating and set a $1,400.00 target price on shares of Transdigm Group in a report on Wednesday, February 4th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,584.44.

Insider Buying and Selling

In other news, COO Joel Reiss sold 3,900 shares of the business's stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $1,429.92, for a total value of $5,576,688.00. Following the completion of the sale, the chief operating officer directly owned 3,600 shares in the company, valued at $5,147,712. The trade was a 52.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Kevin M. Stein sold 36,925 shares of the company's stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $1,425.79, for a total value of $52,647,295.75. Following the transaction, the director directly owned 19,233 shares of the company's stock, valued at approximately $27,422,219.07. The trade was a 65.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 121,248 shares of company stock worth $168,818,884 in the last ninety days. 3.20% of the stock is owned by corporate 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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