Zacks Investment Research upgraded shares of Transdigm Group (NYSE:TDG) from a sell rating to a hold rating in a research note released on Wednesday, November 15th.
According to Zacks, “TransDigm’s excellent business operation model, which implements value-based operating strategies guided by three value driver concepts, has helped the company generate sufficient organic & inorganic growth and drive operating margin expansion over the past few quarters. This apart, TransDigm’s strategic acquisitions in the proprietary aerospace businesses has bolstered its aftermarket content, thus supplementing sales. However, mounting interest expenses and escalating debt burden continue to bother TransDigm’s financials. Further, TransDigm is seeing some negative trends at present, like soft business jet, helicopter and freighter revenues, which might dent its top line growth in the near future. The company has some concerns about the commercial transport industry in the coming times as well. In light of such adversity, the company’s shares have dismally underperformed the industry average, on a year-to-date basis.”
Several other analysts have also recently commented on TDG. Royal Bank Of Canada restated a buy rating and set a $316.00 price target on shares of Transdigm Group in a report on Friday, September 1st. SunTrust Banks restated a buy rating and set a $300.00 price target on shares of Transdigm Group in a report on Monday, October 2nd. Credit Suisse Group restated an outperform rating and set a $320.00 price target (up from $301.00) on shares of Transdigm Group in a report on Thursday, August 10th. They noted that the move was a valuation call. Deutsche Bank raised their price target on shares of Transdigm Group from $305.00 to $320.00 and gave the stock a buy rating in a report on Wednesday, August 9th. Finally, Robert W. Baird restated a buy rating and set a $300.00 price target on shares of Transdigm Group in a report on Thursday, October 12th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. Transdigm Group currently has an average rating of Buy and an average price target of $296.87.
Transdigm Group (TDG) traded down $4.86 during trading on Wednesday, reaching $275.01. 499,190 shares of the company’s stock traded hands, compared to its average volume of 796,075. The firm has a market cap of $14,541.96, a PE ratio of 23.50, a price-to-earnings-growth ratio of 2.36 and a beta of 0.50. The company has a debt-to-equity ratio of -3.86, a quick ratio of 1.61 and a current ratio of 2.45. Transdigm Group has a 52-week low of $203.72 and a 52-week high of $295.00.
Transdigm Group (NYSE:TDG) last announced its earnings results on Thursday, November 9th. The aerospace company reported $3.48 EPS for the quarter, topping the consensus estimate of $3.18 by $0.30. Transdigm Group had a net margin of 12.44% and a negative return on equity of 30.13%. The company had revenue of $923.89 million during the quarter, compared to analysts’ expectations of $959.77 million. During the same period last year, the company posted $3.29 earnings per share. The business’s revenue for the quarter was up 5.6% on a year-over-year basis. equities research analysts anticipate that Transdigm Group will post 12.69 earnings per share for the current year.
In other Transdigm Group news, Director Michael Graff sold 1,872 shares of Transdigm Group stock in a transaction on Friday, December 1st. The shares were sold at an average price of $278.92, for a total transaction of $522,138.24. Following the sale, the director now owns 9,482 shares in the company, valued at $2,644,719.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Raymond F. Laubenthal sold 6,000 shares of Transdigm Group stock in a transaction on Friday, September 15th. The stock was sold at an average price of $254.19, for a total transaction of $1,525,140.00. Following the sale, the director now owns 75,701 shares in the company, valued at approximately $19,242,437.19. The disclosure for this sale can be found here. Insiders have sold 98,648 shares of company stock worth $26,299,932 in the last ninety days. 10.52% of the stock is currently owned by insiders.
A number of institutional investors and hedge funds have recently bought and sold shares of TDG. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Transdigm Group by 3.8% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 382 shares of the aerospace company’s stock valued at $103,000 after purchasing an additional 14 shares in the last quarter. Korea Investment CORP boosted its stake in shares of Transdigm Group by 142.6% in the 2nd quarter. Korea Investment CORP now owns 495 shares of the aerospace company’s stock valued at $133,000 after purchasing an additional 291 shares in the last quarter. HighTower Advisors LLC acquired a new stake in shares of Transdigm Group in the 2nd quarter valued at $201,000. Laurion Capital Management LP acquired a new stake in shares of Transdigm Group in the 2nd quarter valued at $205,000. Finally, Trexquant Investment LP acquired a new stake in shares of Transdigm Group in the 3rd quarter valued at $209,000.
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Transdigm Group Company Profile
TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service. The Company operates through three segments: Power & Control, Airframe and Non-aviation. The 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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