Transdigm Group (NYSE:TDG) Downgraded by Morgan Stanley to "Equal Weight"

Key Points

• Morgan Stanley downgraded Transdigm Group from overweight to equal weight and set a $1,345 price target, implying about 10.6% upside from the current price.
• Other analysts have also recently adjusted their views, and the stock now carries a consensus Hold rating with an average price target of $1,477.47 across coverage.
• Transdigm reported a strong latest quarter, with EPS of $9.85 beating estimates and revenue up 18.3% year over year; however, the article also notes notable insider selling in recent months.

Transdigm Group (NYSE:TDG - Get Free Report) was downgraded by equities research analysts at Morgan Stanley from an "overweight" rating to an "equal weight" rating in a research note issued on Wednesday, Marketbeat.com reports. They currently have a $1,345.00 price target on the aerospace company's stock. Morgan Stanley's target price indicates a potential upside of 10.58% from the company's current price.

TDG has been the topic of several other reports. Royal Bank Of Canada lowered their target price on Transdigm Group from $1,400.00 to $1,350.00 and set a "sector perform" rating on the stock in a research note on Wednesday, May 6th. Susquehanna decreased their price target on Transdigm Group from $1,400.00 to $1,350.00 and set a "neutral" rating for the company in a report on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Transdigm Group from $1,306.00 to $1,350.00 and gave the company a "hold" rating in a research report on Wednesday, May 6th. BMO Capital Markets boosted their price objective on shares of Transdigm Group from $1,450.00 to $1,525.00 and gave the company an "outperform" rating in a research note on Thursday, July 2nd. 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 for the company in a research report on Thursday, May 14th. Seven equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $1,477.47.

Transdigm Group Price Performance

Shares of NYSE:TDG opened at $1,216.33 on Wednesday. Transdigm Group has a 1-year low of $1,123.61 and a 1-year high of $1,623.82. The stock has a market cap of $68.03 billion, a P/E ratio of 37.96, a P/E/G ratio of 2.16 and a beta of 0.90. The firm has a fifty day moving average price of $1,259.06 and a 200 day moving average price of $1,275.81.

Transdigm Group (NYSE:TDG - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The aerospace company reported $9.85 EPS for the quarter, beating analysts' consensus estimates of $9.46 by $0.39. Transdigm Group had a net margin of 20.24% and a negative return on equity of 26.49%. The company had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.47 billion. During the same period in the previous year, the business posted $9.11 earnings per share. Transdigm Group's quarterly 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. Sell-side analysts expect that Transdigm Group will post 37.96 EPS for the current fiscal year.

Insider Buying and Selling

In other Transdigm Group news, Director W Nicholas Howley sold 10,132 shares of the firm's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $1,319.55, for a total value of $13,369,680.60. Following the completion of the sale, the director owned 21,548 shares of the company's stock, valued at approximately $28,433,663.40. This trade represents a 31.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Joel Reiss sold 3,900 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were 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 owned 3,600 shares of the company's stock, valued at $4,596,408. This trade represents a 52.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 38,196 shares of company stock worth $47,631,730. Company insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On Transdigm Group

Hedge funds have recently bought and sold shares of the company. IFP Advisors Inc grew its holdings in Transdigm Group by 392.9% during the 4th quarter. IFP Advisors Inc now owns 1,592 shares of the aerospace company's stock valued at $2,117,000 after purchasing an additional 1,269 shares in the last quarter. DNB Asset Management AS lifted its holdings in Transdigm Group by 11.6% in the 4th quarter. DNB Asset Management AS now owns 25,824 shares of the aerospace company's stock worth $34,342,000 after buying an additional 2,685 shares in the last quarter. HighTower Advisors LLC lifted its holdings in Transdigm Group by 8.0% in the 4th quarter. HighTower Advisors LLC now owns 17,230 shares of the aerospace company's stock worth $22,914,000 after buying an additional 1,281 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new position in Transdigm Group in the 3rd quarter valued at about $10,238,000. Finally, Capital Research Global Investors grew its stake in shares of Transdigm Group by 12.2% during the fourth 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 in the last quarter. 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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