Zacks Investment Research cut shares of TransDigm Group Inc. (NYSE:TDG) from a hold rating to a sell rating in a report issued on Tuesday.
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 brokerages also recently issued reports on TDG. Canaccord Genuity reiterated a buy rating and set a $325.00 price target on shares of TransDigm Group in a research report on Wednesday, September 7th. Deutsche Bank AG upped their target price on shares of TransDigm Group from $260.00 to $300.00 and gave the company a hold rating in a research report on Wednesday, August 10th. Barclays PLC upped their target price on shares of TransDigm Group from $300.00 to $310.00 and gave the company an overweight rating in a research report on Wednesday, August 10th. Jefferies Group initiated coverage on shares of TransDigm Group in a research report on Thursday, September 22nd. They set a buy rating and a $340.00 target price on the stock. Finally, Wolfe Research downgraded shares of TransDigm Group from an outperform rating to a market perform rating in a research report on Friday, July 29th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and eight have assigned a buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $288.18.
Shares of TransDigm Group (NYSE:TDG) opened at 285.50 on Tuesday. The firm has a market capitalization of $15.21 billion, a PE ratio of 30.20 and a beta of 0.72. The company’s 50 day moving average is $286.12 and its 200 day moving average is $260.75. TransDigm Group has a 12-month low of $180.76 and a 12-month high of $294.38.
TransDigm Group (NYSE:TDG) last issued its quarterly earnings results on Tuesday, August 9th. The company reported $3.09 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.82 by $0.27. The business had revenue of $797.70 million for the quarter, compared to the consensus estimate of $805.23 million. TransDigm Group had a net margin of 17.25% and a negative return on equity of 62.15%. The firm’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 EPS. On average, analysts forecast that TransDigm Group will post $11.39 earnings per share for the current year.
In related news, insider Roger Jones sold 7,500 shares of the stock in a transaction that occurred on Thursday, September 1st. The stock was sold at an average price of $285.92, for a total transaction 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 approximately $3,288,080. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Peter Palmer sold 20,500 shares of the stock in a transaction that occurred 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 sale, the insider now directly owns 14,000 shares of the company’s stock, valued at $3,945,760. The disclosure for this sale can be found here. Corporate insiders own 9.30% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. Fifth Third Bancorp boosted its stake in TransDigm Group by 2.1% in the second quarter. Fifth Third Bancorp now owns 578 shares of the company’s stock worth $152,000 after buying an additional 12 shares during the last quarter. Advisory Services Network LLC boosted its stake in TransDigm Group by 341.5% in the second quarter. Advisory Services Network LLC now owns 702 shares of the company’s stock worth $185,000 after buying an additional 543 shares during the last quarter. Tower Research Capital LLC TRC acquired a new stake in TransDigm Group during the second quarter worth about $196,000. Global X Management Co. LLC boosted its stake in TransDigm Group by 75.1% in the second quarter. Global X Management Co. LLC now owns 795 shares of the company’s stock worth $210,000 after buying an additional 341 shares during the last quarter. Finally, OLD Mutual Customised Solutions Proprietary Ltd. acquired a new stake in TransDigm Group during the second quarter worth about $211,000. 87.73% of the stock is owned by institutional investors and hedge funds.
TransDigm Group Company Profile
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.