According to Zacks, “TransDigm has a decent earnings surprise history, having beaten estimates thrice over the four trailing quarters. The company has been posting strong revenue growth, driven by organic sales as well as by its acquired businesses like Pexco, PneuDraulics and Breeze. However on the flip side, mounting interest expenses and escalating debt burden continue to bother TransDigm’s quarterly financials. Further, TransDigm is seeing some negative trends at present, like weaker defense aftermarket orders and soft business jet, helicopter and freighter revenues, which might pressure its top line growth in the near future. In addition, the company faces significant integration risks and expenses. Moreover, heavy dependence of the military and defense market on government budgets also makes the company vulnerable to planned budgetary spending cuts and other presidential policies.”
Several other research analysts have also issued reports on TDG. Canaccord Genuity reiterated a buy rating and issued a $280.00 price target on shares of TransDigm Group in a report on Tuesday, June 21st. Barclays PLC increased their price target on TransDigm Group from $285.00 to $300.00 and gave the stock an overweight rating in a report on Wednesday, June 22nd. Morgan Stanley assumed coverage on TransDigm Group in a report on Thursday, June 23rd. They issued an equal weight rating and a $287.00 price target on the stock. Royal Bank Of Canada restated an outperform rating and issued a $271.00 target price on shares of TransDigm Group in a report on Saturday, June 25th. Finally, KeyCorp upgraded TransDigm Group from a sector weight rating to an overweight rating in a report on Wednesday, June 29th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and eight have given a buy rating to the company. TransDigm Group currently has an average rating of Hold and a consensus target price of $288.18.
Shares of TransDigm Group (NYSE:TDG) opened at 280.90 on Tuesday. TransDigm Group has a 1-year low of $180.76 and a 1-year high of $294.38. The company has a 50-day moving average price of $286.00 and a 200 day moving average price of $261.16. The company has a market capitalization of $14.96 billion, a P/E ratio of 29.71 and a beta of 0.72.
TransDigm Group (NYSE:TDG) last announced its quarterly earnings results on Tuesday, August 9th. The company reported $3.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.82 by $0.27. The business had revenue of $797.70 million for the quarter, compared to analyst estimates of $805.23 million. TransDigm Group had a negative return on equity of 62.15% and a net margin of 17.25%. The company’s quarterly revenue was up 15.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.26 earnings per share. Equities research analysts anticipate that TransDigm Group will post $11.39 EPS for the current year.
In other TransDigm Group news, insider Peter Palmer sold 20,500 shares of the firm’s stock in a transaction on Tuesday, September 13th. The stock was sold at an average price of $281.84, for a total value of $5,777,720.00. Following the completion of the sale, the insider now directly owns 14,000 shares of the company’s stock, valued at $3,945,760. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Roger Jones sold 7,500 shares of the firm’s stock in a transaction on Thursday, September 1st. The stock was sold at an average price of $285.92, for a total value of $2,144,400.00. Following the completion of the sale, the insider now directly owns 11,500 shares of the company’s stock, valued at $3,288,080. The disclosure for this sale can be found here. 9.30% of the stock is owned by company insiders.
A number of hedge funds have recently added to or reduced their stakes in TDG. State Street Corp boosted its position in shares of TransDigm Group by 99.8% in the second quarter. State Street Corp now owns 2,040,202 shares of the company’s stock valued at $537,981,000 after buying an additional 1,019,026 shares during the period. Vanguard Group Inc. boosted its position in shares of TransDigm Group by 23.9% in the second quarter. Vanguard Group Inc. now owns 4,519,006 shares of the company’s stock valued at $1,191,617,000 after buying an additional 873,098 shares during the period. FMR LLC boosted its position in shares of TransDigm Group by 37.4% in the second quarter. FMR LLC now owns 2,076,176 shares of the company’s stock valued at $547,466,000 after buying an additional 564,864 shares during the period. Jana Partners LLC bought a new position in shares of TransDigm Group during the first quarter valued at $80,610,000. Finally, Emerald Acquisition Ltd. bought a new position in shares of TransDigm Group during the second quarter valued at $87,082,000. 87.73% of the stock is owned by institutional investors and hedge funds.
About TransDigm Group
TransDigm Group Incorporated (TransDigm) is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft. The Company operates through three segments: Power & Control, Airframe and Non-aviation. Its Power & Control segment includes operations that primarily develop, produce and market systems and components that provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies.
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