Transdigm Group Incorporated (NYSE:TDG) Given Average Rating of "Hold" by Analysts

Key Points

• Analyst sentiment on TransDigm is mixed, with 17 covering firms giving the stock a consensus "Hold" rating. Ten analysts rate it hold and seven rate it buy, with an average 12-month target price of about $1,477.47.
• Recent financial results topped expectations: TransDigm reported quarterly EPS of $9.85 versus the $9.46 estimate and revenue of $2.54 billion, up 18.3% year over year. The company also guided FY 2026 EPS to 38.83–40.21.
• Insiders have been selling shares, including COO Joel Reiss and Director W. Nicholas Howley, with total insider sales of 38,196 shares worth about $47.6 million over the last three months. Despite that, institutional investors still own 95.78% of the stock.

Transdigm Group Incorporated (NYSE:TDG - Get Free Report) has been given a consensus rating of "Hold" by the seventeen ratings firms that are currently covering the stock, MarketBeat Ratings reports. Ten equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $1,477.4667.

Several equities analysts have commented on the stock. Susquehanna decreased their target price on shares of Transdigm Group from $1,400.00 to $1,350.00 and set a "neutral" rating on the stock in a report on Wednesday, May 6th. Weiss Ratings lowered shares of Transdigm Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 2nd. BNP Paribas Exane decreased their price objective on shares of Transdigm Group from $1,800.00 to $1,750.00 and set an "outperform" rating on the stock in a research note on Thursday, May 14th. Morgan Stanley downgraded shares of Transdigm Group from an "overweight" rating to an "equal weight" rating and lowered their price objective for the company from $1,680.00 to $1,345.00 in a research report on Wednesday. Finally, JPMorgan Chase & Co. upped their target price on Transdigm Group from $1,440.00 to $1,450.00 and gave the stock a "neutral" rating in a research note on Monday, June 15th.

Transdigm Group Stock Performance

NYSE:TDG opened at $1,229.34 on Friday. The company has a market cap of $68.76 billion, a price-to-earnings ratio of 38.37, a PEG ratio of 2.16 and a beta of 0.90. Transdigm Group has a fifty-two week low of $1,123.61 and a fifty-two week high of $1,623.82. The stock has a fifty day moving average price of $1,258.80 and a 200-day moving average price of $1,274.68.

Transdigm Group (NYSE:TDG - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The aerospace company reported $9.85 EPS for the quarter, topping analysts' consensus estimates of $9.46 by $0.39. Transdigm Group had a negative return on equity of 26.49% and a net margin of 20.24%.The company had revenue of $2.54 billion for the quarter, compared to analysts' expectations of $2.47 billion. During the same quarter last year, the business earned $9.11 earnings per share. Transdigm Group'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. Research analysts predict that Transdigm Group will post 37.96 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, COO Joel Reiss sold 3,900 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $1,276.78, for a total transaction of $4,979,442.00. Following the completion of the sale, the chief operating officer directly owned 3,600 shares in the company, valued at $4,596,408. This represents a 52.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director W Nicholas Howley sold 10,132 shares of Transdigm Group stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $1,265.06, for a total value of $12,817,587.92. Following the completion of the transaction, the director owned 21,548 shares in the company, valued at approximately $27,259,512.88. This represents a 31.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 38,196 shares of company stock valued at $47,631,730 in the last three months. 3.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Transdigm Group

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Capital International Investors boosted its position in Transdigm Group by 0.9% in the fourth quarter. Capital International Investors now owns 6,544,423 shares of the aerospace company's stock valued at $8,702,655,000 after buying an additional 55,230 shares in the last quarter. Capital World Investors increased its holdings in shares of Transdigm Group by 0.4% during the fourth quarter. Capital World Investors now owns 3,954,512 shares of the aerospace company's stock worth $5,258,898,000 after buying an additional 15,825 shares in the last quarter. Capital Research Global Investors lifted its stake in shares of Transdigm Group by 12.2% in the 4th quarter. Capital Research Global Investors now owns 2,476,661 shares of the aerospace company's stock valued at $3,293,527,000 after acquiring an additional 268,824 shares during the last quarter. State Street Corp lifted its stake in shares of Transdigm Group by 2.8% in the 4th quarter. State Street Corp now owns 2,456,186 shares of the aerospace company's stock valued at $3,266,359,000 after acquiring an additional 67,348 shares during the last quarter. Finally, Soroban Capital Partners LP boosted its holdings in shares of Transdigm Group by 14.5% during the 1st 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. 95.78% of the stock is owned by institutional investors.

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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