Transdigm Group (NYSE:TDG) Trading Down 4.3% - Here's What Happened

Key Points

• Shares fell 4.3% to $1,219.18 on Tuesday with 81,373 shares traded, about 79% below the average session volume.
• Analyst sentiment is mixed but the consensus is a Moderate Buy with a $1,567.40 price target, while several firms have recently cut ratings or trimmed targets.
• The company beat quarterly estimates (EPS $8.23 vs. $7.99; revenue $2.29B, up 13.9% YoY) and set FY2026 EPS guidance of 37.42–39.34, even as insiders sold roughly 76,390 shares (~$104M) over the past 90 days, including a director sale of 10,132 shares.

Shares of Transdigm Group Incorporated (NYSE:TDG - Get Free Report) traded down 4.3% during trading on Tuesday . The stock traded as low as $1,223.00 and last traded at $1,219.18. 81,373 shares were traded during mid-day trading, a decline of 79% from the average session volume of 380,685 shares. The stock had previously closed at $1,274.62.

Wall Street Analysts Forecast Growth

TDG has been the subject of several recent research reports. Weiss Ratings cut shares of Transdigm Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, April 13th. UBS Group reduced their price objective on Transdigm Group from $1,804.00 to $1,800.00 and set a "buy" rating for the company in a research note on Wednesday, February 4th. Wells Fargo & Company began coverage on Transdigm Group in a report on Wednesday, April 1st. They issued an "equal weight" rating and a $1,200.00 price objective for the company. Robert W. Baird restated a "neutral" rating and issued a $1,400.00 target price on shares of Transdigm Group in a research note on Wednesday, February 4th. Finally, KeyCorp cut Transdigm Group from an "overweight" rating to a "sector weight" rating in a research report on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, Transdigm Group currently has an average rating of "Moderate Buy" and a consensus price target of $1,567.40.

Transdigm Group Stock Performance

The firm's 50 day moving average price is $1,245.59 and its 200-day moving average price is $1,303.40. The firm has a market capitalization of $68.25 billion, a PE ratio of 38.89, a price-to-earnings-growth ratio of 2.67 and a beta of 0.98.

Transdigm Group (NYSE:TDG - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The aerospace company reported $8.23 earnings per share for the quarter, beating the consensus estimate of $7.99 by $0.24. The firm had revenue of $2.29 billion during the quarter, compared to analyst estimates of $2.26 billion. Transdigm Group had a negative return on equity of 29.07% and a net margin of 20.50%.Transdigm Group's revenue for the quarter was up 13.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $7.83 EPS. Transdigm Group has set its FY 2026 guidance at 37.420-39.340 EPS. On average, equities research analysts expect that Transdigm Group Incorporated will post 36.71 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director W Nicholas Howley sold 10,132 shares of the business's stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $1,213.05, for a total transaction of $12,290,622.60. Following the completion of the sale, the director owned 21,548 shares of the company's stock, valued at $26,138,801.40. The trade was a 31.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael Lisman purchased 950 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The stock was bought at an average cost 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 $4,185,403.34. This represents a 41.14% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold 76,390 shares of company stock worth $104,380,338 in the last 90 days. 3.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Transdigm Group

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Transdigm Group by 1.8% during the third quarter. Vanguard Group Inc. now owns 6,814,938 shares of the aerospace company's stock worth $8,982,225,000 after purchasing an additional 121,049 shares in the last quarter. Capital International Investors boosted its stake in Transdigm Group by 0.9% during the 4th quarter. Capital International Investors now owns 6,544,423 shares of the aerospace company's stock worth $8,702,655,000 after purchasing an additional 55,230 shares during the last quarter. Capital World Investors boosted its stake in Transdigm Group by 0.4% during the 4th quarter. Capital World Investors now owns 3,954,512 shares of the aerospace company's stock worth $5,258,898,000 after purchasing an additional 15,825 shares during the last quarter. Capital Research Global Investors grew its holdings 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 worth $3,293,527,000 after buying an additional 268,824 shares in the last quarter. Finally, State Street Corp raised its position in shares of Transdigm Group by 2.8% in the fourth quarter. State Street Corp now owns 2,456,186 shares of the aerospace company's stock valued at $3,266,359,000 after buying an additional 67,348 shares during the last quarter. Institutional investors and hedge funds own 95.78% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.