Transdigm Group (NYSE:TDG) Trading Down 8.5% – What’s Next?

Transdigm Group Incorporated (NYSE:TDG)’s share price dropped 8.5% during trading on Tuesday . The stock traded as low as $1,297.13 and last traded at $1,312.9280. Approximately 104,288 shares traded hands during trading, a decline of 69% from the average daily volume of 331,990 shares. The stock had previously closed at $1,435.52.

Wall Street Analyst Weigh In

A number of research analysts recently commented on TDG shares. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Transdigm Group in a report on Monday, December 29th. Morgan Stanley increased their price target on shares of Transdigm Group from $1,600.00 to $1,660.00 and gave the stock an “overweight” rating in a report on Friday, November 14th. JPMorgan Chase & Co. increased their price target on Transdigm Group from $1,405.00 to $1,435.00 and gave the stock a “neutral” rating in a research report on Friday, November 14th. Truist Financial decreased their target price on shares of Transdigm Group from $1,730.00 to $1,647.00 and set a “buy” rating on the stock in a research note on Wednesday, October 15th. Finally, BNP Paribas Exane began coverage on shares of Transdigm Group in a research note on Tuesday, November 18th. They set an “outperform” rating and a $1,775.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,597.00.

Transdigm Group Trading Down 11.6%

The firm has a market capitalization of $71.68 billion, a price-to-earnings ratio of 39.53, a PEG ratio of 3.13 and a beta of 0.94. The business has a 50-day moving average price of $1,360.65 and a two-hundred day moving average price of $1,361.59.

Transdigm Group (NYSE:TDG) last released its earnings results on Tuesday, February 3rd. The aerospace company reported $8.23 earnings per share for the quarter, topping analysts’ consensus estimates of $7.99 by $0.24. Transdigm Group had a negative return on equity of 31.91% and a net margin of 21.69%.The company’s revenue for the quarter was up 13.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $7.83 EPS. Transdigm Group has set its FY 2026 guidance at 37.420-39.340 EPS. On average, equities research analysts predict that Transdigm Group Incorporated will post 35.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Transdigm Group news, COO Joel Reiss sold 3,900 shares of the firm’s stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $1,429.92, for a total transaction of $5,576,688.00. Following the sale, the chief operating officer directly owned 3,600 shares in the company, valued at approximately $5,147,712. This trade represents a 52.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Robert J. Small sold 4,700 shares of the company’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $1,290.19, for a total value of $6,063,893.00. Following the sale, the director owned 5,625 shares in the company, valued at $7,257,318.75. The trade was a 45.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 194,195 shares of company stock worth $262,983,849. 4.09% of the stock is owned by corporate insiders.

Institutional Trading of Transdigm Group

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Empowered Funds LLC boosted its holdings in Transdigm Group by 5.0% in the first quarter. Empowered Funds LLC now owns 1,372 shares of the aerospace company’s stock valued at $1,898,000 after acquiring an additional 65 shares during the last quarter. Acadian Asset Management LLC grew its holdings in Transdigm Group by 92.3% during the 1st quarter. Acadian Asset Management LLC now owns 273 shares of the aerospace company’s stock worth $376,000 after acquiring an additional 131 shares during the period. Hilltop National Bank bought a new stake in shares of Transdigm Group during the 2nd quarter valued at about $71,000. Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its position in shares of Transdigm Group by 10.5% during the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 263 shares of the aerospace company’s stock worth $400,000 after buying an additional 25 shares during the period. Finally, Ameritas Advisory Services LLC bought a new position in Transdigm Group during the second quarter worth $47,000. 95.78% of the stock is currently owned by institutional investors and hedge funds.

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.