Transdigm Group (NYSE:TDG) Earns Outperform Rating from Analysts at BMO Capital Markets

Key Points

• BMO Capital Markets has initiated coverage of **Transdigm Group (NYSE:TDG)** with an **outperform rating** and a price target of **$1,420**, suggesting a potential upside of **10.20%** from the current stock price.
• The average target price for Transdigm Group set by analysts is **$1,588.50**, with **eleven analysts** rating it as a **Buy**.
• Transdigm Group reported **$9.60 earnings per share** in its latest quarter, missing expectations, but showing a **9.3% year-over-year revenue growth** to **$2.24 billion**.

Equities researchers at BMO Capital Markets started coverage on shares of Transdigm Group (NYSE:TDG - Get Free Report) in a report issued on Tuesday,Benzinga reports. The firm set an "outperform" rating and a $1,420.00 price target on the aerospace company's stock. BMO Capital Markets' target price would indicate a potential upside of 10.20% from the company's current price.

A number of other research analysts have also weighed in on TDG. KeyCorp reduced their price target on Transdigm Group from $1,700.00 to $1,600.00 and set an "overweight" rating on the stock in a research note on Friday, August 8th. Morgan Stanley increased their price target on Transdigm Group from $1,575.00 to $1,750.00 and gave the stock an "overweight" rating in a research note on Thursday, July 17th. Susquehanna increased their price target on Transdigm Group from $1,300.00 to $1,600.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. JPMorgan Chase & Co. increased their price target on Transdigm Group from $1,480.00 to $1,500.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Finally, UBS Group increased their price target on Transdigm Group from $1,815.00 to $1,839.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. Eleven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Transdigm Group presently has an average rating of "Moderate Buy" and an average target price of $1,588.50.

Transdigm Group Stock Performance

TDG stock opened at $1,288.52 on Tuesday. Transdigm Group has a 1 year low of $1,183.60 and a 1 year high of $1,623.82. The stock's 50 day moving average price is $1,397.49 and its 200 day moving average price is $1,412.66. The firm has a market cap of $72.61 billion, a P/E ratio of 42.77, a PEG ratio of 2.74 and a beta of 1.03.

Transdigm Group (NYSE:TDG - Get Free Report) last posted its earnings results on Tuesday, August 5th. The aerospace company reported $9.60 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $9.75 by ($0.15). Transdigm Group had a net margin of 20.98% and a negative return on equity of 35.27%. The company had revenue of $2.24 billion during the quarter, compared to analysts' expectations of $2.29 billion. During the same period in the previous year, the company posted $9.00 EPS. Transdigm Group's quarterly revenue 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, research analysts predict that Transdigm Group will post 35.13 earnings per share for the current year.

Insider Buying and Selling

In other Transdigm Group news, COO Joel Reiss sold 3,000 shares of the firm's stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $1,276.07, for a total value of $3,828,210.00. Following the transaction, the chief operating officer directly owned 3,600 shares of the company's stock, valued at $4,593,852. This trade represents a 45.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director W Nicholas Howley sold 2,736 shares of Transdigm Group stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $1,569.86, for a total value of $4,295,136.96. Following the sale, the director directly owned 21,548 shares in the company, valued at approximately $33,827,343.28. The trade was a 11.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 21,232 shares of company stock valued at $29,496,571. 4.09% of the stock is owned by company insiders.

Institutional Trading of Transdigm Group

Hedge funds and other institutional investors have recently modified their holdings of the business. Winch Advisory Services LLC raised its position in Transdigm Group by 53.8% in 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. MassMutual Private Wealth & Trust FSB raised its position in Transdigm Group by 2.8% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 257 shares of the aerospace company's stock worth $391,000 after acquiring an additional 7 shares during the period. Diversified Enterprises LLC raised its position in Transdigm Group by 3.8% in the second quarter. Diversified Enterprises LLC now owns 193 shares of the aerospace company's stock worth $293,000 after acquiring an additional 7 shares during the period. FSM Wealth Advisors LLC raised its position in Transdigm Group by 3.8% in the second quarter. FSM Wealth Advisors LLC now owns 191 shares of the aerospace company's stock worth $292,000 after acquiring an additional 7 shares during the period. Finally, Rothschild Investment LLC raised its position in Transdigm Group by 13.1% in the first quarter. Rothschild Investment LLC now owns 69 shares of the aerospace company's stock worth $95,000 after acquiring an additional 8 shares during the period. 95.78% of the stock is 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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