Weiss Ratings Reiterates "Buy (B)" Rating for Transdigm Group (NYSE:TDG)

Key Points

• Weiss Ratings has reiterated a "Buy (B)" rating for Transdigm Group (NYSE:TDG), reflecting confidence in the company's performance.
• Multiple analysts, including Truist Financial and Morgan Stanley, have adjusted their price targets for Transdigm Group, with the average consensus target price set at $1,588.50.
• Despite a revenue increase of 9.3% year-over-year, Transdigm Group reported earnings per share of $9.60, missing consensus estimates.

Transdigm Group (NYSE:TDG - Get Free Report)'s stock had its "buy (b)" rating restated by Weiss Ratings in a research report issued on Wednesday,Weiss Ratings reports.

Several other equities analysts also recently issued reports on the company. Truist Financial boosted their price objective on Transdigm Group from $1,553.00 to $1,730.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Jefferies Financial Group decreased their price objective on shares of Transdigm Group from $1,650.00 to $1,490.00 and set a "buy" rating for the company in a report on Wednesday, September 17th. JPMorgan Chase & Co. upped their price target on shares of Transdigm Group from $1,480.00 to $1,500.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. Morgan Stanley increased their target price on shares of Transdigm Group from $1,575.00 to $1,750.00 and gave the company an "overweight" rating in a research note on Thursday, July 17th. Finally, KeyCorp dropped their price target on shares of Transdigm Group from $1,700.00 to $1,600.00 and set an "overweight" rating for the company in a research report on Friday, August 8th. Twelve analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,588.50.

Transdigm Group Price Performance

Transdigm Group stock traded up $0.95 during mid-day trading on Wednesday, hitting $1,285.33. 208,720 shares of the company were exchanged, compared to its average volume of 295,764. Transdigm Group has a 12-month low of $1,183.60 and a 12-month high of $1,623.82. The business's 50 day simple moving average is $1,354.46 and its two-hundred day simple moving average is $1,408.89. The company has a market capitalization of $72.43 billion, a P/E ratio of 42.66, a PEG ratio of 2.32 and a beta of 1.02.

Transdigm Group (NYSE:TDG - Get Free Report) last issued its earnings results on Tuesday, August 5th. The aerospace company reported $9.60 earnings per share for the quarter, missing analysts' consensus estimates of $9.75 by ($0.15). The firm had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.29 billion. Transdigm Group had a net margin of 20.98% and a negative return on equity of 35.27%. Transdigm Group's revenue was up 9.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $9.00 EPS. Transdigm Group has set its FY 2025 guidance at 36.330-37.150 EPS. Equities research analysts predict that Transdigm Group will post 35.13 earnings per share for the current year.

Insider Activity

In other news, COO Joel Reiss sold 3,000 shares of the company's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $1,276.07, for a total transaction of $3,828,210.00. Following the transaction, the chief operating officer owned 3,600 shares in the company, valued at approximately $4,593,852. This represents a 45.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Robert J. Small sold 5,000 shares of the company's stock in a transaction dated Friday, September 12th. The stock was sold at an average price of $1,276.98, for a total transaction of $6,384,900.00. Following the completion of the sale, the director directly owned 83,419 shares of the company's stock, valued at $106,524,394.62. The trade was a 5.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 21,232 shares of company stock worth $29,496,571 in the last three months. Corporate insiders own 4.09% of the company's stock.

Hedge Funds Weigh In On Transdigm Group

A number of hedge funds have recently modified their holdings of the company. Winch Advisory Services LLC raised its stake in Transdigm Group by 53.8% during the first quarter. Winch Advisory Services LLC now owns 20 shares of the aerospace company's stock valued at $28,000 after purchasing an additional 7 shares in the last quarter. Saudi Central Bank bought a new position in Transdigm Group during the 1st quarter worth about $30,000. Bank of Jackson Hole Trust boosted its holdings in shares of Transdigm Group by 84.6% in the 2nd quarter. Bank of Jackson Hole Trust now owns 24 shares of the aerospace company's stock valued at $36,000 after buying an additional 11 shares in the last quarter. Hantz Financial Services Inc. raised its position in shares of Transdigm Group by 1,250.0% in the 2nd quarter. Hantz Financial Services Inc. now owns 27 shares of the aerospace company's stock valued at $41,000 after purchasing an additional 25 shares during the last quarter. Finally, Ameritas Advisory Services LLC purchased a new position in Transdigm Group during the 2nd quarter worth approximately $47,000. 95.78% of the stock is currently owned by 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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