Transdigm Group (NYSE:TDG) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Transdigm Group from buy to hold, adding to a mixed analyst backdrop that still leaves the stock with a Moderate Buy consensus and a target price around $1,524.18.
• The stock was down slightly, opening at $1,255.58, while Transdigm reported strong quarterly results with EPS of $9.85 versus estimates of $9.46 and revenue of $2.54 billion, up 18.3% year over year.
• Insider selling has been notable, including sales by Director W. Nicholas Howley and COO Joel Reiss; over the past three months, insiders sold 42,096 shares worth about $51.4 million.

Transdigm Group (NYSE:TDG - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Sunday.

Several other equities analysts have also issued reports on the stock. Weiss Ratings lowered shares of Transdigm Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 2nd. UBS Group cut their price objective on shares of Transdigm Group from $1,745.00 to $1,645.00 and set a "buy" rating on the stock in a report on Wednesday, May 6th. Jefferies Financial Group lifted their price target on shares of Transdigm Group from $1,565.00 to $1,575.00 in a report on Monday, May 11th. Royal Bank Of Canada cut their price target on shares of Transdigm Group from $1,400.00 to $1,350.00 and set a "sector perform" rating on the stock in a report on Wednesday, May 6th. Finally, Deutsche Bank Aktiengesellschaft lifted their price target 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. Ten analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, Transdigm Group currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,524.18.

Transdigm Group Stock Down 0.2%

Shares of TDG stock opened at $1,255.58 on Friday. The firm has a market cap of $70.22 billion, a price-to-earnings ratio of 39.19, a PEG ratio of 2.20 and a beta of 0.91. The company's 50 day moving average is $1,211.68 and its 200 day moving average is $1,277.80. Transdigm Group has a 52-week low of $1,123.61 and a 52-week high of $1,623.82.

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 (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 analyst estimates 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 revenue was up 18.3% compared to the same quarter last year. During the same period last year, the company posted $9.11 earnings per share. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. Analysts anticipate that Transdigm Group will post 37.82 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director W Nicholas Howley sold 10,132 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $1,180.82, for a total transaction of $11,964,068.24. Following the sale, the director directly owned 21,548 shares of the company's stock, valued at $25,444,309.36. The trade was a 31.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Joel Reiss sold 3,900 shares of the business's stock in a transaction 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 directly owned 3,600 shares in the company, valued at $4,154,724. This trade represents a 52.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 42,096 shares of company stock worth $51,417,454 over the last three months. Corporate insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On Transdigm Group

A number of large investors have recently made changes to their positions in the stock. Tower Wealth Partners Inc. lifted its position in Transdigm Group by 4.5% during the third quarter. Tower Wealth Partners Inc. now owns 187 shares of the aerospace company's stock valued at $246,000 after purchasing an additional 8 shares during the period. Central Pacific Bank Trust Division lifted its position in Transdigm Group by 44.4% during the fourth quarter. Central Pacific Bank Trust Division now owns 26 shares of the aerospace company's stock valued at $35,000 after purchasing an additional 8 shares during the period. Family Legacy Inc. lifted its position in Transdigm Group by 0.3% during the fourth quarter. Family Legacy Inc. now owns 2,394 shares of the aerospace company's stock valued at $3,184,000 after purchasing an additional 8 shares during the period. Annis Gardner Whiting Capital Advisors LLC lifted its position in Transdigm Group by 17.0% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 55 shares of the aerospace company's stock valued at $73,000 after purchasing an additional 8 shares during the period. Finally, Patton Fund Management Inc. lifted its position in Transdigm Group by 5.7% during the fourth quarter. Patton Fund Management Inc. now owns 167 shares of the aerospace company's stock valued at $222,000 after purchasing an additional 9 shares during the period. 95.78% of the stock is owned by hedge funds and other institutional investors.

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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