Transdigm Group (NYSE:TDG) Stock Breaks Above 200-Day Moving Average - Here's What Happened

Key Points

• TransDigm shares moved above their 200-day moving average of $1,221.05, reaching an intraday high of $1,263.40 before trading near $1,226.
• Fiscal Q4 results topped estimates: adjusted EPS was $12.44 versus $12.21 expected, and revenue of about $2.99 billion beat forecasts and rose roughly 23% year over year.
• Fiscal 2027 outlook was mixed: revenue guidance of $12.0–$12.2 billion exceeded consensus, while adjusted EPS guidance of $47.09–$47.94 had a midpoint just below analysts’ estimate. Analysts’ average rating was Hold.

Transdigm Group Incorporated (NYSE:TDG - Get Free Report) shares passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $1,221.05 and traded as high as $1,263.40. Transdigm Group shares last traded at $1,226.0930, with a volume of 603,949 shares traded.

Transdigm Group News Roundup

Here are the key news stories impacting Transdigm Group this week:

• Positive Sentiment: Fiscal Q4 adjusted EPS of $12.44 beat the $12.21 consensus, while revenue of about $2.99 billion exceeded estimates of $2.95 billion. Revenue rose 23% year over year, and organic sales increased 14%. TransDigm Q4 earnings article
• Positive Sentiment: For fiscal 2027, TDG forecast revenue of $12.0 billion to $12.2 billion, above the $11.7 billion consensus, signaling expected continued growth. Fiscal 2027 guidance article
• Negative Sentiment: The company’s fiscal 2027 adjusted EPS guidance of $47.09–$47.94 has a midpoint below the $47.91 analyst estimate. The softer profit outlook, with acquisition-related margin pressure among the factors noted, overshadowed the quarterly beat and contributed to shares moving lower. Article on TransDigm outlook and shares

Analyst Ratings Changes

Several research firms have commented on TDG. JPMorgan Chase & Co. dropped their price objective on shares of Transdigm Group from $1,450.00 to $1,415.00 and set a "neutral" rating for the company in a research note on Thursday, September 17th. Royal Bank Of Canada reduced their target price on shares of Transdigm Group from $1,350.00 to $1,200.00 and set a "sector perform" rating on the stock in a research note on Thursday, October 15th. Guggenheim began coverage on shares of Transdigm Group in a report on Tuesday, September 15th. They issued a "neutral" rating for the company. Wall Street Zen lowered shares of Transdigm Group from a "buy" rating to a "hold" rating in a report on Monday, July 20th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Transdigm Group in a research note on Friday, August 28th. Five analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $1,428.40.

Transdigm Group Stock Up 0.6%

The business has a 50 day moving average price of $1,131.80 and a 200 day moving average price of $1,221.05. The stock has a market cap of $68.58 billion, a P/E ratio of 37.20, a PEG ratio of 1.74 and a beta of 0.98.

Transdigm Group (NYSE:TDG - Get Free Report) last issued its quarterly earnings results on Tuesday, November 10th. The aerospace company reported $12.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $12.21 by $0.23. Transdigm Group had a negative return on equity of 23.65% and a net margin of 19.69%. The firm had revenue of $2.99 billion during the quarter, compared to analyst estimates of $2.95 billion. During the same period last year, the company earned $10.82 EPS. Transdigm Group's quarterly revenue was up 22.6% compared to the same quarter last year. Transdigm Group has set its FY 2027 guidance at 47.090-47.940 EPS. On average, research analysts expect that Transdigm Group Incorporated will post 38.81 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Transdigm Group news, Director W. Howley sold 10,132 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $1,236.28, for a total value of $12,525,988.96. Following the sale, the director owned 21,548 shares in the company, valued at $26,639,361.44. This trade represents a 31.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Joel Reiss sold 4,100 shares of Transdigm Group stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $1,128.04, for a total value of $4,624,964.00. Following the sale, the chief operating officer owned 3,600 shares of the company's stock, valued at approximately $4,060,944. This trade represents a 53.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 22,032 shares of company stock worth $26,250,979. Insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On Transdigm Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Transdigm Group during the second quarter worth approximately $6,489,039,000. State Street Corp raised its stake in shares of Transdigm Group by 1.7% during the second quarter. State Street Corp now owns 2,559,096 shares of the aerospace company's stock valued at $3,408,818,000 after acquiring an additional 42,490 shares in the last quarter. Soroban Capital Partners LP raised its stake in shares of Transdigm Group by 14.5% during the first quarter. Soroban Capital Partners LP now owns 856,197 shares of the aerospace company's stock valued at $992,298,000 after acquiring an additional 108,227 shares in the last quarter. Aberdeen Group plc boosted its holdings in shares of Transdigm Group by 1,057.7% in the third quarter. Aberdeen Group plc now owns 473,445 shares of the aerospace company's stock valued at $512,552,000 after purchasing an additional 432,551 shares during the period. Finally, Stockbridge Partners LLC purchased a new stake in shares of Transdigm Group in the second quarter valued at approximately $578,480,000. Institutional investors own 95.78% of the company's stock.

Transdigm Group Company Profile

TransDigm Group Incorporated designs, produces and supplies highly engineered components for the aerospace industry. Its products include mechanical and electromechanical systems, pumps, valves, ignition systems, batteries, power-conditioning devices and cockpit components. The company serves commercial, military and business aviation markets, supplying components for both original aircraft production and the aftermarket. Its products are used on aircraft operated around the world, and its aftermarket business provides replacement parts and related support.

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