Transdigm Group (NYSE:TDG) Price Target Lowered to $1,350.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its price target on Transdigm to $1,350 (from $1,400) with a "sector perform" rating, implying about a 9.5% upside, while the analyst consensus remains a "Moderate Buy" with an average target near $1,557.
• Transdigm beat Q2 estimates—EPS $9.85 vs. $9.46 and revenue $2.54B, up 18.3% year-over-year—and raised FY2026 EPS guidance to a range of 38.83–40.21, supporting stronger fundamentals despite some downgrades.
• Insider activity was mixed: the COO sold 3,900 shares (reducing their stake by ~52%) while the CEO bought 950 shares, and institutional ownership remains very high at about 95.78%.

Transdigm Group (NYSE:TDG - Get Free Report) had its price objective reduced by analysts at Royal Bank Of Canada from $1,400.00 to $1,350.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has a "sector perform" rating on the aerospace company's stock. Royal Bank Of Canada's price target suggests a potential upside of 9.50% from the stock's current price.

Several other research analysts have also issued reports on TDG. UBS Group lowered their price target on shares of Transdigm Group from $1,804.00 to $1,800.00 and set a "buy" rating for the company in a report on Wednesday, February 4th. Wells Fargo & Company assumed coverage on shares of Transdigm Group in a report on Wednesday, April 1st. They set an "equal weight" rating and a $1,200.00 price target for the company. Susquehanna reduced their price objective on shares of Transdigm Group from $1,400.00 to $1,350.00 and set a "neutral" rating for the company in a research report on Wednesday. Robert W. Baird reaffirmed a "neutral" rating and set a $1,400.00 price objective on shares of Transdigm Group in a research report on Wednesday, February 4th. Finally, KeyCorp downgraded shares of Transdigm Group from an "overweight" rating to a "sector weight" rating in a research report on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $1,557.40.

Transdigm Group Stock Up 3.5%

Transdigm Group stock traded up $41.50 during mid-day trading on Wednesday, hitting $1,232.83. 204,062 shares of the stock were exchanged, compared to its average volume of 392,201. Transdigm Group has a 12 month low of $1,123.61 and a 12 month high of $1,623.82. The firm's fifty day simple moving average is $1,220.06 and its two-hundred day simple moving average is $1,296.12. The stock has a market capitalization of $69.62 billion, a price-to-earnings ratio of 39.70, a PEG ratio of 2.43 and a beta of 0.90.

Transdigm Group (NYSE:TDG - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The aerospace company reported $9.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.46 by $0.39. Transdigm Group had a net margin of 20.50% and a negative return on equity of 29.07%. The firm had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.47 billion. During the same quarter last year, the business earned $9.11 EPS. The company's revenue was up 18.3% compared to the same quarter last year. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. As a group, analysts forecast that Transdigm Group will post 36.71 earnings per share for the current fiscal year.

Insider Buying and Selling at Transdigm Group

In other Transdigm Group news, COO Joel Reiss sold 3,900 shares of the firm's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $1,280.46, for a total transaction of $4,993,794.00. Following the transaction, the chief operating officer directly owned 3,600 shares in the company, valued at approximately $4,609,656. This trade represents a 52.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Michael Lisman bought 950 shares of the stock in a transaction dated Friday, February 6th. The shares were acquired at an average price of $1,284.26 per share, for a total transaction of $1,220,047.00. Following the completion of the purchase, the chief executive officer directly owned 3,259 shares in the company, valued at approximately $4,185,403.34. This trade represents a 41.14% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have sold 38,232 shares of company stock worth $48,248,925. Corporate insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On Transdigm Group

Several institutional investors have recently bought and sold shares of TDG. Norges Bank purchased a new position in Transdigm Group in the fourth quarter valued at approximately $1,025,591,000. Principal Financial Group Inc. raised its stake in Transdigm Group by 18.3% in the 3rd quarter. Principal Financial Group Inc. now owns 2,379,816 shares of the aerospace company's stock valued at $3,136,719,000 after acquiring an additional 367,756 shares during the period. Franklin Resources Inc. raised its stake in Transdigm Group by 161.7% in the 3rd quarter. Franklin Resources Inc. now owns 475,489 shares of the aerospace company's stock valued at $626,704,000 after acquiring an additional 293,821 shares during the period. Capital Research Global Investors raised its stake in Transdigm Group by 12.2% in the 4th 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 during the period. Finally, Capital International Investors raised its stake in Transdigm Group by 4.1% in the 3rd quarter. Capital International Investors now owns 6,489,193 shares of the aerospace company's stock valued at $8,552,028,000 after acquiring an additional 254,750 shares during the period. Hedge funds and other institutional investors own 95.78% of the company's stock.

Key Stories Impacting Transdigm Group

Here are the key news stories impacting Transdigm Group this week:

• Positive Sentiment: Q2 results beat and guidance raised — TDG reported fiscal Q2 sales up 18% to $2.544B, adjusted EPS above estimates, and raised FY2026 EPS and revenue guidance, a clear catalyst that supports higher valuation expectations. TransDigm Group Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: Profitability and cash metrics improved — net income rose ~12%, EBITDA (as defined) increased ~15% and margins remained strong, reinforcing investor confidence in TransDigm’s pricing power and product mix. Company Press Release / Slide Deck
• Positive Sentiment: Buy-side interest noted — coverage and hedge fund commentary continue to list TDG among attractive large-cap aerospace/defense names, which can support demand into strength. InsiderMonkey: Q2 Results & Hedge Fund Interest
• Neutral Sentiment: Media/TV mentions — TDG was discussed on CNBC segments (Final Trades), which can drive short-term flow but doesn’t change fundamentals. MSN: CNBC 'Final Trades' Mention
• Negative Sentiment: Insider sold a large stake — a disclosed insider reduced their holding by ~58%, which can raise governance or confidence questions for some investors. Yahoo Finance: Insider Reduced Stake
• Negative Sentiment: Analyst action trims upside — Susquehanna cut its price target to $1,350 and moved to a neutral rating, signaling more limited near-term upside and weighing on sentiment despite the earnings beat. Benzinga: Susquehanna Lowers PT

Transdigm Group Company Profile

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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