Susquehanna Cuts Transdigm Group (NYSE:TDG) Price Target to $1,350.00

Key Points

• Susquehanna cut its price target on Transdigm from $1,400 to $1,350 and kept a "neutral" rating, implying roughly an 8.1% upside from the stock's current level.
• Q2 results topped expectations — Transdigm reported EPS of $9.85 vs. $9.46 consensus and revenue of $2.544B (+18% YoY), and raised FY2026 guidance to $38.83–$40.21 EPS and $10.3–$10.4B revenue, with EBITDA of $1,337M (52.6% margin).
• Mixed analyst views and valuation risks — the consensus rating is "Moderate Buy" with a $1,560.73 average target, but concerns remain about a high P/E (~40), negative reported ROE (~-29%), rising interest costs/leverage, and offsetting insider selling despite a CEO purchase.

Transdigm Group (NYSE:TDG - Get Free Report) had its price objective lowered by research analysts at Susquehanna from $1,400.00 to $1,350.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the aerospace company's stock. Susquehanna's price target indicates a potential upside of 8.10% from the stock's current price.

TDG has been the topic of a number of other reports. UBS Group cut their price objective on shares of Transdigm Group from $1,804.00 to $1,800.00 and set a "buy" rating on the stock in a research note on Wednesday, February 4th. Weiss Ratings lowered Transdigm Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, April 13th. KeyCorp lowered Transdigm Group from an "overweight" rating to a "sector weight" rating in a report on Thursday, February 5th. 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. Finally, Wells Fargo & Company initiated coverage on Transdigm Group in a report on Wednesday, April 1st. They set an "equal weight" rating and a $1,200.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,560.73.

Transdigm Group Price Performance

Shares of NYSE TDG traded up $57.53 during midday trading on Wednesday, reaching $1,248.86. 95,997 shares of the company traded hands, compared to its average volume of 390,703. Transdigm Group has a 52 week low of $1,123.61 and a 52 week high of $1,623.82. The stock has a 50-day moving average price of $1,220.06 and a 200 day moving average price of $1,296.12. The company has a market cap of $70.52 billion, a price-to-earnings ratio of 40.10, a PEG ratio of 2.43 and a beta of 0.90.

Transdigm Group (NYSE:TDG - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The aerospace company reported $9.85 earnings per share for the quarter, beating analysts' consensus estimates of $9.46 by $0.39. Transdigm Group had a net margin of 20.50% and a negative return on equity of 29.07%. The business had revenue of $2.54 billion for the quarter, compared to analysts' expectations of $2.47 billion. During the same period in the previous year, the business earned $9.11 earnings per share. The company's revenue was up 18.3% on a year-over-year basis. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. As a group, analysts expect that Transdigm Group will post 36.71 EPS for the current year.

Insider Buying and Selling

In related news, CEO Michael Lisman purchased 950 shares of the company's stock in a transaction that occurred on Friday, February 6th. The shares were purchased at an average price of $1,284.26 per share, with a total value of $1,220,047.00. Following the purchase, the chief executive officer owned 3,259 shares of the company's stock, valued at $4,185,403.34. This trade represents a 41.14% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director W Nicholas Howley sold 10,168 shares of Transdigm Group stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $1,307.68, for a total value of $13,296,490.24. Following the completion of the transaction, the director directly owned 21,548 shares in the company, valued at $28,177,888.64. This represents a 32.06% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 38,232 shares of company stock valued at $48,248,925. 3.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Transdigm Group

A number of institutional investors have recently bought and sold shares of the stock. Tower Wealth Partners Inc. increased its stake in Transdigm Group by 4.5% in the 3rd quarter. Tower Wealth Partners Inc. now owns 187 shares of the aerospace company's stock worth $246,000 after purchasing an additional 8 shares in the last quarter. Central Pacific Bank Trust Division increased its stake in Transdigm Group by 44.4% in the 4th quarter. Central Pacific Bank Trust Division now owns 26 shares of the aerospace company's stock worth $35,000 after purchasing an additional 8 shares in the last quarter. Family Legacy Inc. increased its stake in Transdigm Group by 0.3% in the 4th quarter. Family Legacy Inc. now owns 2,394 shares of the aerospace company's stock worth $3,184,000 after purchasing an additional 8 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its stake in Transdigm Group by 17.0% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 55 shares of the aerospace company's stock worth $73,000 after purchasing an additional 8 shares in the last quarter. Finally, Parkside Financial Bank & Trust increased its stake in Transdigm Group by 5.6% in the 3rd quarter. Parkside Financial Bank & Trust now owns 171 shares of the aerospace company's stock worth $225,000 after purchasing an additional 9 shares in the last quarter. Hedge funds and other institutional investors own 95.78% of the company's stock.

Trending Headlines about Transdigm Group

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

• Positive Sentiment: Q2 beats — Adjusted EPS of $9.85 and revenue of $2.544B (up ~18% y/y) topped consensus, driven by broad demand. TransDigm Group Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: Guidance raised — Company updated FY2026 EPS to $38.830–$40.210 and revenue to $10.3–$10.4B, above Street revenue expectations, supporting forward earnings visibility. Transdigm Group Inc.: Transdigm Group Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: Strong profitability — EBITDA (As Defined) of $1,337M and a 52.6% margin underline cash generation and pricing power in the aftermarket. TransDigm Group Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: Underlying demand and M&A tailwinds — Commercial aftermarket strength, U.S. defense demand and the Simmonds acquisition were cited as revenue/margin drivers heading into the quarter. TransDigm to Report Q2 Results: What's in Store for the Stock?
• Neutral Sentiment: Investor materials available — Company released the earnings slide deck and held the conference call; slides and presentation give more detail on segment trends and buyback/capex plans. Transdigm Group Incorporated 2026 Q2 - Results - Earnings Call Presentation
• Neutral Sentiment: Valuation/technicals — TDG remains richly valued on a near-term P/E basis with mixed moving-average signals; watch multiple compression risk if growth slows. Transdigm Group Stock Overview
• Negative Sentiment: Rising interest expense and leverage — Analysts flagged higher interest costs and elevated debt as offsetting factors that could pressure margins and free cash flow. Transdigm's Q2 Earnings Surpass Estimates, Sales Increase Y/Y
• Negative Sentiment: Return-on-equity anomaly — Reported negative ROE (~-29%) highlights accounting/financial-structure issues investors should review in the 10-Q and call. Transdigm Q2 Earnings Summary & Conference Call

About Transdigm Group

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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