Transdigm Group (NYSE:TDG) Downgraded to "Sector Perform" Rating by Royal Bank Of Canada

Key Points

• Transdigm Group has been downgraded from an "outperform" to a "sector perform" rating by Royal Bank of Canada, with a revised price target of $1,385.00, indicating a potential upside of 8.87% from its current price.
• In recent months, other analysts have raised their price targets for Transdigm, with a consensus price target of $1,607.57 from a majority rating of "Moderate Buy."
• Despite a recent earnings miss and a decline in share prices, insider selling has been notable, with significant shares sold by top directors, signifying potential concern about the company’s future performance.

Transdigm Group (NYSE:TDG - Get Free Report) was downgraded by stock analysts at Royal Bank Of Canada from an "outperform" rating to a "sector perform" rating in a research note issued on Monday,Finviz reports. They currently have a $1,385.00 price target on the aerospace company's stock. Royal Bank Of Canada's target price indicates a potential upside of 8.87% from the stock's current price.

Several other equities analysts have also issued reports on TDG. Truist Financial lifted their target price on Transdigm Group from $1,553.00 to $1,730.00 and gave the company a "buy" rating in a research note 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 company a "buy" rating in a report on Monday, June 23rd. JPMorgan Chase & Co. boosted their price objective on Transdigm Group from $1,480.00 to $1,500.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Stifel Nicolaus began 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. Finally, Susquehanna upped their target price on Transdigm Group from $1,300.00 to $1,600.00 and gave the company a "neutral" rating in a report on Monday, July 14th. Nine investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,607.57.

Transdigm Group Stock Down 0.8%

Shares of TDG opened at $1,272.16 on Monday. The company has a market cap of $71.69 billion, a PE ratio of 42.22, a P/E/G ratio of 2.69 and a beta of 1.03. The business has a fifty day moving average of $1,479.69 and a 200 day moving average of $1,418.14. Transdigm Group has a 52-week low of $1,183.60 and a 52-week high of $1,623.82.

Transdigm Group (NYSE:TDG - Get Free Report) last released its earnings results on Tuesday, August 5th. The aerospace company reported $9.60 earnings per share 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 business had revenue of $2.24 billion for the quarter, compared to the consensus estimate of $2.29 billion. During the same quarter last year, the business 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. As a group, research analysts anticipate that Transdigm Group will post 35.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Robert J. Small sold 45,700 shares of the stock in a transaction dated Tuesday, June 10th. The stock was sold at an average price of $1,425.01, for a total value of $65,122,957.00. Following the transaction, the director owned 88,419 shares in the company, valued at approximately $125,997,959.19. This represents a 34.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Michael Graff sold 1,760 shares of the firm's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $1,402.10, for a total value of $2,467,696.00. Following the transaction, the director owned 1,964 shares in the company, valued at $2,753,724.40. This represents a 47.26% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 66,932 shares of company stock worth $96,378,273. 4.09% of the stock is currently owned by company insiders.

Institutional Trading of Transdigm Group

Hedge funds have recently added to or reduced their stakes in the stock. Bruce G. Allen Investments LLC grew its holdings in Transdigm Group by 111.1% during the first quarter. Bruce G. Allen Investments LLC now owns 19 shares of the aerospace company's stock worth $26,000 after acquiring an additional 10 shares during the period. Winch Advisory Services LLC grew its holdings in Transdigm Group by 53.8% during the first quarter. Winch Advisory Services LLC now owns 20 shares of the aerospace company's stock worth $28,000 after acquiring an additional 7 shares during the period. Saudi Central Bank acquired a new position in Transdigm Group during the first quarter worth $30,000. Park Square Financial Group LLC acquired a new position in Transdigm Group during the fourth quarter worth $32,000. Finally, Bank of Jackson Hole Trust grew its holdings in Transdigm Group by 84.6% during the second quarter. Bank of Jackson Hole Trust now owns 24 shares of the aerospace company's stock worth $36,000 after acquiring an additional 11 shares during the period. 95.78% of the stock is owned by institutional investors and hedge funds.

Transdigm Group Company Profile

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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