Transdigm Group (NYSE:TDG) Trading Down 8.5% – Here’s What Happened

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

Analysts Set New Price Targets

A number of brokerages have recently weighed in on TDG. Susquehanna dropped their price objective on shares of Transdigm Group from $1,500.00 to $1,450.00 and set a “neutral” rating for the company in a research note on Thursday, October 9th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Transdigm Group in a report on Monday, December 29th. UBS Group increased their price target on Transdigm Group from $1,798.00 to $1,804.00 and gave the stock a “buy” rating in a research report on Thursday, January 15th. Morgan Stanley upped 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 research report on Friday, November 14th. Finally, Royal Bank Of Canada increased their price target on Transdigm Group from $1,385.00 to $1,400.00 and gave the stock a “sector perform” rating in a research note on Thursday, November 13th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Transdigm Group presently has an average rating of “Moderate Buy” and a consensus target price of $1,597.00.

Transdigm Group Price Performance

The stock’s 50 day simple moving average is $1,360.65 and its two-hundred day simple moving average is $1,361.59. The stock has a market cap of $71.68 billion, a price-to-earnings ratio of 39.53, a P/E/G ratio of 3.13 and a beta of 0.94.

Transdigm Group (NYSE:TDG) last announced its quarterly earnings data on Tuesday, February 3rd. The aerospace company reported $8.23 earnings per share for the quarter, beating the consensus estimate of $7.99 by $0.24. Transdigm Group had a net margin of 21.69% and a negative return on equity of 31.91%. During the same period last year, the company earned $7.83 EPS. Transdigm Group’s revenue for the quarter was up 13.9% on a year-over-year basis. Transdigm Group has set its FY 2026 guidance at 37.420-39.340 EPS. As a group, analysts predict that Transdigm Group Incorporated will post 35.13 earnings per share for the current year.

Insider Activity

In other news, Director Kevin M. Stein sold 7,627 shares of the firm’s stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $1,406.38, for a total value of $10,726,460.26. Following the completion of the sale, the director directly owned 8,158 shares of the company’s stock, valued at $11,473,248.04. This trade represents a 48.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Robert J. Small sold 4,700 shares of the company’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $1,290.19, for a total transaction of $6,063,893.00. Following the sale, the director directly owned 5,625 shares of the company’s stock, valued at approximately $7,257,318.75. This trade represents a 45.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 194,195 shares of company stock worth $262,983,849. 4.09% of the stock is owned by insiders.

Institutional Trading of Transdigm Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TDG. Vanguard Group Inc. raised its holdings in Transdigm Group by 1.8% during the third quarter. Vanguard Group Inc. now owns 6,814,938 shares of the aerospace company’s stock worth $8,982,225,000 after buying an additional 121,049 shares during the last quarter. Capital International Investors increased its position in shares of Transdigm Group by 4.1% in the third quarter. Capital International Investors now owns 6,489,193 shares of the aerospace company’s stock worth $8,552,028,000 after purchasing an additional 254,750 shares during the last quarter. State Street Corp lifted its position in Transdigm Group by 1.9% in the 3rd quarter. State Street Corp now owns 2,388,838 shares of the aerospace company’s stock worth $3,148,536,000 after buying an additional 45,550 shares during the last quarter. Principal Financial Group Inc. grew its holdings in shares of Transdigm Group by 18.3% during the 3rd quarter. Principal Financial Group Inc. now owns 2,379,816 shares of the aerospace company’s stock valued at $3,136,719,000 after purchasing an additional 367,756 shares during the last quarter. Finally, Capital Research Global Investors lifted its stake in shares of Transdigm Group by 10.2% in the 3rd quarter. Capital Research Global Investors now owns 2,207,837 shares of the aerospace company’s stock valued at $2,909,850,000 after acquiring an additional 203,997 shares during the last quarter. 95.78% of the stock is owned by institutional investors.

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.