Transdigm Group Incorporated (NYSE:TDG) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Transdigm Group has been rated a "Moderate Buy" by 17 brokerages, with 12 buy ratings and an average target price of $1,579.13.
• The company recently announced a special dividend increase from $75 to $90, with the payment issued on September 12th.
• Despite a revenue increase of 9.3% year-over-year, Transdigm reported a quarterly EPS of $9.60, missing the consensus estimate by $0.15.

Shares of Transdigm Group Incorporated (NYSE:TDG - Get Free Report) have been given an average rating of "Moderate Buy" by the seventeen brokerages that are presently covering the firm, Marketbeat.com reports. Five analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $1,579.1250.

TDG has been the subject of several research reports. Susquehanna dropped their price target on Transdigm Group from $1,500.00 to $1,450.00 and set a "neutral" rating for the company in a research report on Thursday, October 9th. Stifel Nicolaus initiated coverage on Transdigm Group in a research report on Tuesday, June 24th. They set a "buy" rating and a $1,710.00 price target for the company. Truist Financial boosted their price target on 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. The Goldman Sachs Group boosted their price target on Transdigm Group from $1,526.00 to $1,709.00 and gave the stock a "buy" rating in a research report on Monday, June 23rd. Finally, Morgan Stanley upped their target price on Transdigm Group from $1,575.00 to $1,750.00 and gave the company an "overweight" rating in a report on Thursday, July 17th.

Transdigm Group Stock Performance

Shares of TDG opened at $1,311.96 on Wednesday. Transdigm Group has a one year low of $1,183.60 and a one year high of $1,623.82. The stock has a market capitalization of $73.93 billion, a price-to-earnings ratio of 43.54, a PEG ratio of 2.94 and a beta of 1.02. The stock has a 50 day moving average price of $1,333.20 and a 200 day moving average price of $1,406.36.

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

Transdigm Group Increases Dividend

The business also recently announced a special dividend, which was paid on Friday, September 12th. Shareholders of record on Tuesday, September 2nd were issued a $90.00 dividend. The ex-dividend date was Tuesday, September 2nd. This is an increase from Transdigm Group's previous special dividend of $75.00.

Insider Buying and Selling

In other Transdigm Group news, Director W Nicholas Howley sold 2,736 shares of the company's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $1,282.47, for a total value of $3,508,837.92. Following the completion of the sale, the director directly owned 21,548 shares in the company, valued at $27,634,663.56. This represents a 11.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Robert J. Small sold 5,000 shares of the company's stock in a transaction on Friday, September 12th. The shares were sold at an average price of $1,276.98, for a total value of $6,384,900.00. Following the completion of the sale, the director owned 83,419 shares of the company's stock, valued at approximately $106,524,394.62. The trade was a 5.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 18,496 shares of company stock valued at $25,201,434 in the last quarter. Corporate insiders own 4.09% of the company's stock.

Hedge Funds Weigh In On Transdigm Group

A number of hedge funds have recently modified their holdings of the business. Farther Finance Advisors LLC grew its holdings in shares of Transdigm Group by 7.6% during the 3rd quarter. Farther Finance Advisors LLC now owns 455 shares of the aerospace company's stock worth $600,000 after purchasing an additional 32 shares during the period. Leonard Rickey Investment Advisors P.L.L.C. grew its holdings in shares of Transdigm Group by 4.4% during the 3rd quarter. Leonard Rickey Investment Advisors P.L.L.C. now owns 188 shares of the aerospace company's stock worth $248,000 after purchasing an additional 8 shares during the period. HBK Sorce Advisory LLC grew its holdings in shares of Transdigm Group by 19.3% during the 3rd quarter. HBK Sorce Advisory LLC now owns 334 shares of the aerospace company's stock worth $429,000 after purchasing an additional 54 shares during the period. Exchange Traded Concepts LLC grew its holdings in shares of Transdigm Group by 65.3% during the 3rd quarter. Exchange Traded Concepts LLC now owns 3,588 shares of the aerospace company's stock worth $4,729,000 after purchasing an additional 1,418 shares during the period. Finally, AA Financial Advisors LLC grew its holdings in shares of Transdigm Group by 61.3% during the 3rd quarter. AA Financial Advisors LLC now owns 342 shares of the aerospace company's stock worth $451,000 after purchasing an additional 130 shares during the period. 95.78% of the stock is currently owned by hedge funds and other institutional investors.

About Transdigm Group

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.

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