Transdigm Group (NYSE:TDG) Upgraded by Wall Street Zen to Buy Rating

Key Points

• Wall Street Zen upgraded Transdigm Group from “hold” to “buy,” adding to a generally positive analyst backdrop. The stock now has 10 Buy ratings and 9 Hold ratings, with a consensus rating of Moderate Buy and an average target price of $1,524.18.
• Transdigm’s latest quarterly results beat expectations, with EPS of $9.85 versus estimates of $9.46 and revenue of $2.54 billion, up 18.3% year over year. The company also reaffirmed strong FY2026 guidance of 38.83 to 40.21 EPS.
• Despite the upbeat outlook, insider selling has been notable, including transactions by Director W. Nicholas Howley and COO Joel Reiss. Insiders sold a total of 42,096 shares worth about $51.4 million over the last 90 days.

Transdigm Group (NYSE:TDG - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

A number of other research analysts also recently commented on the company. BNP Paribas Exane dropped their price objective on Transdigm Group from $1,800.00 to $1,750.00 and set an "outperform" rating on the stock in a report on Thursday, May 14th. UBS Group dropped their price objective on Transdigm Group from $1,745.00 to $1,645.00 and set a "buy" rating on the stock in a report on Wednesday, May 6th. Morgan Stanley increased their price objective on Transdigm Group from $1,660.00 to $1,680.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. BMO Capital Markets dropped their price objective on Transdigm Group from $1,550.00 to $1,450.00 and set an "outperform" rating on the stock in a report on Tuesday, March 31st. Finally, Susquehanna dropped their price objective on Transdigm Group from $1,400.00 to $1,350.00 and set a "neutral" rating on the stock in a report on Wednesday, May 6th. Ten analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, Transdigm Group presently has a consensus rating of "Moderate Buy" and an average target price of $1,524.18.

Transdigm Group Price Performance

TDG stock opened at $1,241.05 on Friday. Transdigm Group has a 1 year low of $1,123.61 and a 1 year high of $1,623.82. The firm has a market capitalization of $69.41 billion, a P/E ratio of 38.73, a P/E/G ratio of 2.15 and a beta of 0.91. The business's 50-day moving average is $1,203.10 and its two-hundred day moving average is $1,281.43.

Transdigm Group (NYSE:TDG - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The aerospace company reported $9.85 EPS for the quarter, beating analysts' consensus estimates of $9.46 by $0.39. Transdigm Group had a negative return on equity of 26.49% and a net margin of 20.24%.The business had revenue of $2.54 billion for the quarter, compared to the consensus estimate of $2.47 billion. During the same quarter in the prior year, the business posted $9.11 EPS. The business's revenue for the quarter was up 18.3% on a year-over-year basis. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. On average, analysts expect that Transdigm Group will post 37.82 EPS for the current year.

Insider Buying and Selling

In other Transdigm Group news, Director W Nicholas Howley sold 10,132 shares of Transdigm Group stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1,213.05, for a total value of $12,290,622.60. Following the transaction, the director directly owned 21,548 shares in the company, valued at approximately $26,138,801.40. This trade represents a 31.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Joel Reiss sold 3,900 shares of Transdigm Group stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $1,154.09, for a total value of $4,500,951.00. Following the completion of the transaction, the chief operating officer owned 3,600 shares in the company, valued at $4,154,724. This trade represents a 52.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 42,096 shares of company stock worth $51,417,454 in the last 90 days. 3.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Ares Financial Consulting LLC purchased a new position in shares of Transdigm Group in the 4th quarter valued at approximately $25,000. Elyxium Wealth LLC purchased a new position in shares of Transdigm Group in the 4th quarter valued at approximately $25,000. MCF Advisors LLC grew its stake in shares of Transdigm Group by 900.0% in the 4th quarter. MCF Advisors LLC now owns 20 shares of the aerospace company's stock valued at $27,000 after purchasing an additional 18 shares during the last quarter. Transamerica Financial Advisors LLC lifted its holdings in shares of Transdigm Group by 1,900.0% in the 4th quarter. Transamerica Financial Advisors LLC now owns 20 shares of the aerospace company's stock valued at $27,000 after buying an additional 19 shares during the period. Finally, Colonial Trust Co SC lifted its holdings in shares of Transdigm Group by 162.5% in the 4th quarter. Colonial Trust Co SC now owns 21 shares of the aerospace company's stock valued at $29,000 after buying an additional 13 shares during the period. 95.78% of the stock is currently owned by hedge funds and other institutional investors.

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.