Morgan Stanley Has Lowered Expectations for Transdigm Group (NYSE:TDG) Stock Price

Key Points

• Morgan Stanley has lowered its price target for Transdigm Group's stock from $1,750.00 to $1,600.00, maintaining an "overweight" rating, which suggests a potential upside of 22.93% from the current price.
• Transdigm reported $9.60 earnings per share, missing analyst estimates by $0.15, with revenue for the quarter at $2.24 billion, below expectations.
• Insiders sold a combined total of 18,496 shares of Transdigm stock worth over $25 million in the past quarter, indicating a liquidity shift among executives.

Transdigm Group (NYSE:TDG - Get Free Report) had its price objective dropped by research analysts at Morgan Stanley from $1,750.00 to $1,600.00 in a research report issued on Wednesday,Benzinga reports. The brokerage currently has an "overweight" rating on the aerospace company's stock. Morgan Stanley's price objective would suggest a potential upside of 22.93% from the stock's current price.

TDG has been the subject of several other research reports. KeyCorp reduced their price target on shares of Transdigm Group from $1,700.00 to $1,600.00 and set an "overweight" rating for the company in a research report on Friday, August 8th. Citigroup upped their price objective on shares of Transdigm Group from $1,635.00 to $1,795.00 and gave the company a "buy" rating in a research note on Monday, July 14th. JPMorgan Chase & Co. increased their target price on shares of Transdigm Group from $1,480.00 to $1,500.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Weiss Ratings reiterated a "buy (b)" rating on shares of Transdigm Group in a research report on Wednesday, October 8th. Finally, Truist Financial increased their target price on shares of Transdigm Group from $1,553.00 to $1,730.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Twelve equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, Transdigm Group has an average rating of "Moderate Buy" and an average target price of $1,569.75.

Transdigm Group Trading Down 0.8%

TDG stock traded down $10.94 during mid-day trading on Wednesday, hitting $1,301.54. 7,604 shares of the company were exchanged, compared to its average volume of 295,957. The company has a market capitalization of $73.34 billion, a PE ratio of 43.35, a price-to-earnings-growth ratio of 2.94 and a beta of 1.02. Transdigm Group has a twelve month low of $1,183.60 and a twelve month high of $1,623.82. The firm has a fifty day simple moving average of $1,333.20 and a 200 day simple moving average of $1,406.36.

Transdigm Group (NYSE:TDG - Get Free Report) last posted its earnings results on Tuesday, August 5th. The aerospace company reported $9.60 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $9.75 by ($0.15). Transdigm Group had a net margin of 20.98% and a negative return on equity of 35.27%. The firm had revenue of $2.24 billion for the quarter, compared to analyst estimates of $2.29 billion. During the same period in the previous year, the firm earned $9.00 earnings per share. The company's revenue for the quarter was up 9.3% on a year-over-year basis. Transdigm Group has set its FY 2025 guidance at 36.330-37.150 EPS. As a group, sell-side analysts anticipate that Transdigm Group will post 35.13 earnings per share for the current year.

Insider Activity

In other Transdigm Group news, Director Michael Graff sold 1,760 shares of Transdigm Group stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of $1,402.10, for a total value of $2,467,696.00. Following the transaction, the director owned 1,964 shares of the company's stock, valued at approximately $2,753,724.40. The trade was a 47.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director W Nicholas Howley sold 2,736 shares of the business's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $1,282.47, for a total transaction of $3,508,837.92. Following the completion of the sale, the director directly owned 21,548 shares in the company, valued at approximately $27,634,663.56. This represents a 11.27% decrease in their position. The disclosure for this sale can be found here. Insiders sold 18,496 shares of company stock worth $25,201,434 over the last quarter. 4.09% of the stock is owned by insiders.

Hedge Funds Weigh In On Transdigm Group

Institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC increased its holdings in shares of Transdigm Group by 28.3% in the first quarter. GAMMA Investing LLC now owns 897 shares of the aerospace company's stock valued at $1,241,000 after purchasing an additional 198 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in shares of Transdigm Group by 2.7% in the first quarter. Assenagon Asset Management S.A. now owns 1,035 shares of the aerospace company's stock valued at $1,432,000 after buying an additional 27 shares during the period. Wealth Enhancement Advisory Services LLC increased its position in Transdigm Group by 0.9% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 4,977 shares of the aerospace company's stock valued at $6,886,000 after purchasing an additional 45 shares during the period. Dynamic Advisor Solutions LLC acquired a new stake in Transdigm Group during the 1st quarter valued at approximately $1,113,000. Finally, Ritholtz Wealth Management grew its position in shares of Transdigm Group by 31.8% during the 1st quarter. Ritholtz Wealth Management now owns 261 shares of the aerospace company's stock worth $361,000 after buying an additional 63 shares during the period. 95.78% of the stock is currently owned by institutional investors and hedge funds.

Transdigm Group Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.