Jefferies Financial Group Has Lowered Expectations for Transdigm Group (NYSE:TDG) Stock Price

Key Points

• Jefferies Financial Group has reduced the price target for Transdigm Group's stock from $1,650.00 to $1,490.00, maintaining a "buy" rating which suggests a potential upside of 16.30%.
• Transdigm Group reported Q2 earnings per share of $9.60, falling short of the consensus estimate of $9.75, with a year-over-year revenue increase of 9.3%.
• Insiders have sold a total of 21,232 shares valued at approximately $29.9 million in the last ninety days, reflecting a notable decrease in their ownership positions.

Transdigm Group (NYSE:TDG - Free Report) had its price target reduced by Jefferies Financial Group from $1,650.00 to $1,490.00 in a research report released on Wednesday, MarketBeat.com reports. They currently have a buy rating on the aerospace company's stock.

TDG has been the topic of several other reports. JPMorgan Chase & Co. boosted their target price on Transdigm Group from $1,480.00 to $1,500.00 and gave the stock a "neutral" rating in a report on Thursday, August 7th. Morgan Stanley boosted their target price on Transdigm Group from $1,575.00 to $1,750.00 and gave the stock an "overweight" rating in a report on Thursday, July 17th. KeyCorp reduced their price target on shares of Transdigm Group from $1,700.00 to $1,600.00 and set an "overweight" rating on the stock in a research report on Friday, August 8th. Truist Financial lifted their price target on shares of Transdigm Group from $1,553.00 to $1,730.00 and gave the company a "buy" rating in a research report on Friday, July 11th. Finally, Royal Bank Of Canada lowered shares of Transdigm Group from an "outperform" rating to a "sector perform" rating and reduced their price target for the company from $1,550.00 to $1,385.00 in a research report on Monday, September 8th. Ten investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $1,599.73.

Transdigm Group Price Performance

TDG stock traded down $4.68 during trading on Wednesday, hitting $1,281.44. The stock had a trading volume of 520,191 shares, compared to its average volume of 354,813. Transdigm Group has a twelve month low of $1,183.60 and a twelve month high of $1,623.82. The stock has a market capitalization of $72.21 billion, a P/E ratio of 42.53, a PEG ratio of 2.71 and a beta of 1.03. The company's 50-day moving average price is $1,432.10 and its two-hundred day moving average price is $1,413.77.

Transdigm Group (NYSE:TDG - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The aerospace company reported $9.60 earnings per share (EPS) 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 firm had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.29 billion. During the same quarter in the previous year, the firm posted $9.00 earnings per share. The company's quarterly revenue was up 9.3% on a year-over-year basis. Transdigm Group has set its FY 2025 guidance at 36.330-37.150 EPS. As a group, sell-side analysts expect that Transdigm Group will post 35.13 EPS for the current fiscal year.

Transdigm Group Increases Dividend

The company also recently announced a special dividend, which was paid on Friday, September 12th. Investors of record on Tuesday, September 2nd were paid a dividend of $90.00 per share. The ex-dividend date was Tuesday, September 2nd. This is an increase from Transdigm Group's previous special dividend of $75.00.

Insider Activity

In related news, Director Michael Graff sold 1,760 shares of the business's stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $1,402.10, for a total transaction of $2,467,696.00. Following the completion of the transaction, the director owned 1,964 shares in the company, valued at approximately $2,753,724.40. The trade was a 47.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Joel Reiss sold 3,000 shares of the business's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $1,406.07, for a total transaction of $4,218,210.00. Following the transaction, the chief operating officer owned 3,600 shares of the company's stock, valued at approximately $5,061,852. The trade was a 45.45% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 18,232 shares of company stock worth $25,668,361. 4.09% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Transdigm Group

Institutional investors and hedge funds have recently modified their holdings of the company. Bruce G. Allen Investments LLC grew its stake in shares of 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 purchasing an additional 10 shares in the last quarter. Winch Advisory Services LLC boosted its stake in Transdigm Group by 53.8% in the first quarter. Winch Advisory Services LLC now owns 20 shares of the aerospace company's stock valued at $28,000 after acquiring an additional 7 shares in the last quarter. Saudi Central Bank acquired a new position in Transdigm Group in the first quarter valued at $30,000. Bank of Jackson Hole Trust boosted its stake in Transdigm Group by 84.6% in the second quarter. Bank of Jackson Hole Trust now owns 24 shares of the aerospace company's stock valued at $36,000 after acquiring an additional 11 shares in the last quarter. Finally, Park Square Financial Group LLC acquired a new position in Transdigm Group in the fourth quarter valued at $32,000. Institutional investors and hedge funds own 95.78% of the company's stock.

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.