Transdigm Group (NYSE:TDG) Stock Crosses Above Fifty Day Moving Average - What's Next?

Key Points

• TransDigm shares rose above their 50-day moving average, reaching $1,151.68 before last trading at $1,138.08. The stock’s 50-day average was $1,130.93, while its 200-day average stood at $1,231.01.
• Analyst sentiment remains cautious: five analysts rate TDG a Buy and 13 rate it a Hold, producing a consensus Hold rating and an average price target of $1,428.40. Several firms recently lowered their targets.
• The company beat quarterly expectations, reporting $10.87 in adjusted EPS versus $10.30 expected and $2.74 billion in revenue, up 22.5% year over year. Meanwhile, insiders sold 22,032 shares worth about $26.3 million over the past 90 days.

Transdigm Group Incorporated (NYSE:TDG - Get Free Report) shares passed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $1,130.93 and traded as high as $1,151.68. Transdigm Group shares last traded at $1,138.08, with a volume of 254,752 shares traded.

Analysts Set New Price Targets

TDG has been the subject of a number of recent research reports. Guggenheim initiated coverage on shares of Transdigm Group in a research report on Tuesday, September 15th. They set a "neutral" rating for the company. Stifel Nicolaus cut Transdigm Group from a "buy" rating to a "hold" rating and decreased their target price for the stock from $1,525.00 to $1,405.00 in a report on Wednesday, August 5th. TD Cowen lowered their target price on Transdigm Group from $1,450.00 to $1,300.00 and set a "buy" rating on the stock in a research report on Friday, October 9th. Weiss Ratings reiterated a "hold (c)" rating on shares of Transdigm Group in a research report on Friday, August 28th. Finally, The Goldman Sachs Group cut their price target on Transdigm Group from $1,972.00 to $1,745.00 and set a "buy" rating for the company in a report on Monday, October 12th. Five equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $1,428.40.

Transdigm Group Stock Up 0.7%

The firm has a market cap of $63.66 billion, a PE ratio of 34.53, a P/E/G ratio of 1.58 and a beta of 0.96. The firm's fifty day simple moving average is $1,130.93 and its two-hundred day simple moving average is $1,231.01.

Transdigm Group (NYSE:TDG - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $10.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $10.30 by $0.57. The firm had revenue of $2.74 billion during the quarter, compared to analysts' expectations of $2.68 billion. Transdigm Group had a net margin of 19.69% and a negative return on equity of 23.65%. The company's revenue for the quarter was up 22.5% compared to the same quarter last year. During the same period in the prior year, the company posted $9.60 earnings per share. Transdigm Group has set its FY 2026 guidance at 40.620-41.460 EPS. As a group, analysts anticipate that Transdigm Group Incorporated will post 38.81 earnings per share for the current fiscal year.

Insider Buying and Selling at Transdigm Group

In other Transdigm Group news, COO Joel Reiss sold 4,100 shares of the 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 completion of the sale, the chief operating officer owned 3,600 shares in the company, valued at approximately $4,060,944. This represents a 53.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director W. Howley sold 10,132 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $1,236.28, for a total value of $12,525,988.96. Following the sale, the director directly owned 21,548 shares in the company, valued at approximately $26,639,361.44. This represents a 31.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 22,032 shares of company stock valued at $26,250,979 in the last ninety days. 3.20% of the stock is currently owned by insiders.

Institutional Trading of Transdigm Group

Several institutional investors have recently made changes to their positions in the business. Burkett Financial Services LLC purchased a new position in shares of Transdigm Group during the second quarter worth approximately $25,000. Meeder Asset Management Inc. purchased a new stake in shares of Transdigm Group in the second quarter valued at approximately $31,000. Trust Co. of Vermont purchased a new stake in shares of Transdigm Group in the second quarter valued at approximately $33,000. Western Wealth Management LLC bought a new position in Transdigm Group in the first quarter worth approximately $30,000. Finally, Financial Life Planners bought a new position in Transdigm Group in the first quarter worth approximately $34,000. Hedge funds and other institutional investors own 95.78% of the company's stock.

About Transdigm Group

TransDigm Group Incorporated NYSE: TDG is a global aerospace manufacturing company that designs, produces and supplies aircraft components, systems and related products. Its portfolio includes mechanical and electrical systems, cockpit and cabin products, airframe components, power and control systems, engine components, and other specialized equipment used in commercial, business and general aviation, and military aircraft.

The company serves aircraft manufacturers, airlines, aircraft operators, maintenance providers and defense customers.

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