TransDigm Group Inc. (TDG) Downgraded to “Sell” at Zacks Investment Research
TransDigm Group Inc. (NYSE:TDG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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 research analysts have also recently weighed in on the company. Royal Bank Of Canada reiterated an “outperform” rating and set a $271.00 price target on shares of TransDigm Group in a research report on Saturday, June 25th. Jefferies Group initiated coverage on TransDigm Group in a research report on Thursday, September 22nd. They set a “buy” rating and a $340.00 price target for the company. Morgan Stanley initiated coverage on TransDigm Group in a research report on Thursday, June 23rd. They set an “equal weight” rating and a $287.00 price target for the company. KeyCorp upgraded TransDigm Group from a “sector weight” rating to an “overweight” rating in a research report on Wednesday, June 29th. Finally, Canaccord Genuity reiterated a “buy” rating and set a $280.00 price target on shares of TransDigm Group in a research report on Tuesday, June 21st. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have given a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $282.90.
TransDigm Group (NYSE:TDG) traded down 2.141% on Tuesday, hitting $283.655. The stock had a trading volume of 440,213 shares. The company has a market cap of $15.11 billion, a PE ratio of 30.001 and a beta of 0.72. TransDigm Group has a 12 month low of $180.76 and a 12 month high of $294.38. The company has a 50-day moving average of $286.13 and a 200 day moving average of $259.99.
TransDigm Group (NYSE:TDG) last announced its quarterly earnings data 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. TransDigm Group had a negative return on equity of 62.15% and a net margin of 17.25%. The firm earned $797.70 million during the quarter, compared to analysts’ expectations of $805.23 million. During the same period last year, the business posted $2.26 earnings per share. The company’s revenue for the quarter was up 15.4% compared to the same quarter last year. On average, analysts predict that TransDigm Group will post $11.39 EPS for the current fiscal year.
In other news, insider Bernt G. Iversen II sold 10,000 shares of TransDigm Group stock in a transaction that occurred on Tuesday, August 30th. The stock was sold at an average price of $287.16, for a total value of $2,871,600.00. Following the sale, the insider now directly owns 15,010 shares of the company’s stock, valued at $4,310,271.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Roger Jones sold 7,500 shares of TransDigm Group stock in a transaction that occurred 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 in the company, valued at $3,288,080. The disclosure for this sale can be found here. 9.30% of the stock is owned by insiders.
Several hedge funds have recently modified their holdings of the company. Aperio Group LLC raised its position in TransDigm Group by 6.0% in the first quarter. Aperio Group LLC now owns 21,557 shares of the company’s stock worth $4,750,000 after buying an additional 1,227 shares during the period. Pacad Investment Ltd. bought a new position in TransDigm Group during the first quarter worth $397,000. Prudential Financial Inc. raised its position in TransDigm Group by 6.4% in the first quarter. Prudential Financial Inc. now owns 3,473 shares of the company’s stock worth $765,000 after buying an additional 210 shares during the period. BlackRock Inc. raised its position in TransDigm Group by 78.5% in the first quarter. BlackRock Inc. now owns 81,315 shares of the company’s stock worth $17,916,000 after buying an additional 35,748 shares during the period. Finally, BlackRock Group LTD raised its position in TransDigm Group by 9.9% in the first quarter. BlackRock Group LTD now owns 331,393 shares of the company’s stock worth $73,020,000 after buying an additional 29,890 shares during the period. 87.73% of the stock is currently owned by hedge funds and other institutional investors.
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.
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