Transdigm Group Incorporated (NYSE:TDG) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Transdigm Group has a consensus analyst rating of "Moderate Buy", based on coverage from 19 analysts: 10 buy ratings and 9 hold ratings. The average 1-year price target is about $1,524.
• The company recently reported strong quarterly results, with EPS of $9.85 beating estimates and revenue of $2.54 billion topping expectations. Revenue also rose 18.3% year over year, and Transdigm raised its FY 2026 EPS guidance.
• Insider selling has been notable, including transactions by Director W. Nicholas Howley and COO Joel Reiss, while institutional investors still own 95.78% of the stock. The shares were trading at $1,242.02, below the analyst average target.

Shares of Transdigm Group Incorporated (NYSE:TDG - Get Free Report) have earned an average rating of "Moderate Buy" from the nineteen analysts that are presently covering the firm, Marketbeat reports. Nine research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $1,524.1765.

A number of equities research analysts have weighed in on the stock. TD Cowen cut their price objective on shares of Transdigm Group from $1,565.00 to $1,450.00 and set a "buy" rating on the stock in a report on Wednesday, April 8th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Transdigm Group from $1,306.00 to $1,350.00 and gave the stock a "hold" rating in a report on Wednesday, May 6th. BMO Capital Markets cut their price objective on shares of Transdigm Group from $1,550.00 to $1,450.00 and set an "outperform" rating on the stock in a report on Tuesday, March 31st. Robert W. Baird restated a "neutral" rating and issued a $1,400.00 price objective on shares of Transdigm Group in a report on Wednesday, February 4th. Finally, BNP Paribas Exane cut 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 report on Thursday, May 14th.

Insider Activity at Transdigm Group

In other news, Director W Nicholas Howley sold 10,132 shares of the stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $1,213.05, for a total transaction of $12,290,622.60. Following the sale, the director owned 21,548 shares in the company, valued at $26,138,801.40. This represents a 31.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Joel Reiss sold 3,900 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $1,154.09, for a total transaction of $4,500,951.00. Following the sale, the chief operating officer owned 3,600 shares in the company, valued at approximately $4,154,724. The trade was a 52.00% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 42,096 shares of company stock worth $51,417,454. Insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On Transdigm Group

A number of institutional investors have recently made changes to their positions in TDG. Empowered Funds LLC grew its holdings in shares of Transdigm Group by 5.0% during the first quarter. Empowered Funds LLC now owns 1,372 shares of the aerospace company's stock valued at $1,898,000 after buying an additional 65 shares during the last quarter. Acadian Asset Management LLC grew its holdings in shares of Transdigm Group by 92.3% during the first quarter. Acadian Asset Management LLC now owns 273 shares of the aerospace company's stock valued at $376,000 after buying an additional 131 shares during the last quarter. NewEdge Advisors LLC grew its holdings in shares of Transdigm Group by 152.9% during the second quarter. NewEdge Advisors LLC now owns 2,064 shares of the aerospace company's stock valued at $3,138,000 after buying an additional 1,248 shares during the last quarter. Sei Investments Co. grew its holdings in shares of Transdigm Group by 25.4% during the second quarter. Sei Investments Co. now owns 33,032 shares of the aerospace company's stock valued at $50,227,000 after buying an additional 6,697 shares during the last quarter. Finally, Treasurer of the State of North Carolina grew its holdings in shares of Transdigm Group by 3.6% during the second quarter. Treasurer of the State of North Carolina now owns 25,821 shares of the aerospace company's stock valued at $39,264,000 after buying an additional 902 shares during the last quarter. Hedge funds and other institutional investors own 95.78% of the company's stock.

Transdigm Group Price Performance

Shares of NYSE TDG opened at $1,242.02 on Thursday. Transdigm Group has a 1 year low of $1,123.61 and a 1 year high of $1,623.82. The company's 50-day moving average is $1,194.81 and its 200 day moving average is $1,284.50. The stock has a market capitalization of $69.47 billion, a P/E ratio of 38.76, a P/E/G ratio of 2.15 and a beta of 0.90.

Transdigm Group (NYSE:TDG - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The aerospace company reported $9.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.46 by $0.39. The company had revenue of $2.54 billion for the quarter, compared to analysts' expectations of $2.47 billion. Transdigm Group had a net margin of 20.24% and a negative return on equity of 26.49%. Transdigm Group's quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $9.11 earnings per share. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. Research analysts anticipate that Transdigm Group will post 37.82 earnings per share for the current year.

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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