Transdigm Group (NYSE:TDG) Trading Down 4.3% After Insider Selling

Transdigm Group Incorporated (NYSE:TDG)’s share price traded down 4.3% during trading on Tuesday following insider selling activity. The stock traded as low as $1,223.00 and last traded at $1,219.18. 81,373 shares were traded during trading, a decline of 79% from the average session volume of 380,685 shares. The stock had previously closed at $1,274.62.

Specifically, Director W Nicholas Howley sold 10,132 shares of the firm’s stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $1,265.06, for a total value of $12,817,587.92. Following the completion of the sale, the director directly owned 21,548 shares in the company, valued at $27,259,512.88. This trade represents a 31.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Joel Reiss sold 3,900 shares of the firm’s stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $1,280.46, for a total transaction of $4,993,794.00. Following the completion of the sale, the chief operating officer owned 3,600 shares of the company’s stock, valued at approximately $4,609,656. This trade represents a 52.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Analyst Ratings Changes

TDG has been the subject of several recent analyst reports. Wells Fargo & Company initiated coverage on shares of Transdigm Group in a research note on Wednesday, April 1st. They issued an “equal weight” rating and a $1,200.00 target price for the company. Weiss Ratings downgraded shares of Transdigm Group from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, April 13th. Robert W. Baird restated a “neutral” rating and issued a $1,400.00 target price on shares of Transdigm Group in a research note on Wednesday, February 4th. KeyCorp downgraded shares of Transdigm Group from an “overweight” rating to a “sector weight” rating in a research note on Thursday, February 5th. Finally, UBS Group lowered their target price on shares of Transdigm Group from $1,804.00 to $1,800.00 and set a “buy” rating for the company in a research note on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $1,567.40.

Transdigm Group Stock Down 1.9%

The company’s 50 day moving average price is $1,240.67 and its 200 day moving average price is $1,302.00. The firm has a market capitalization of $65.78 billion, a price-to-earnings ratio of 37.48, a P/E/G ratio of 2.54 and a beta of 0.98.

Transdigm Group (NYSE:TDG) last posted its quarterly earnings data on Tuesday, February 3rd. The aerospace company reported $8.23 EPS for the quarter, topping the consensus estimate of $7.99 by $0.24. Transdigm Group had a net margin of 20.50% and a negative return on equity of 29.07%. The business had revenue of $2.29 billion during the quarter, compared to the consensus estimate of $2.26 billion. During the same period in the previous year, the firm posted $7.83 earnings per share. The business’s revenue for the quarter was up 13.9% compared to the same quarter last year. Transdigm Group has set its FY 2026 guidance at 37.420-39.340 EPS. As a group, analysts expect that Transdigm Group Incorporated will post 36.71 earnings per share for the current year.

Institutional Investors Weigh In On Transdigm Group

Institutional investors and hedge funds have recently made changes to their positions in the stock. Sumitomo Mitsui Trust Group Inc. grew its position in Transdigm Group by 2.5% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 201,736 shares of the aerospace company’s stock valued at $265,892,000 after buying an additional 4,870 shares during the period. Citizens Financial Group Inc. RI raised its position in shares of Transdigm Group by 272.4% in the third quarter. Citizens Financial Group Inc. RI now owns 3,009 shares of the aerospace company’s stock worth $3,965,000 after acquiring an additional 2,201 shares during the period. Principal Financial Group Inc. boosted its stake 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 worth $3,136,719,000 after acquiring an additional 367,756 shares in the last quarter. Vulcan Value Partners LLC boosted its stake in shares of Transdigm Group by 7.8% during the 3rd quarter. Vulcan Value Partners LLC now owns 249,643 shares of the aerospace company’s stock worth $328,977,000 after acquiring an additional 18,048 shares in the last quarter. Finally, Envestnet Asset Management Inc. grew its position in shares of Transdigm Group by 2.4% during the 3rd quarter. Envestnet Asset Management Inc. now owns 73,818 shares of the aerospace company’s stock valued at $97,293,000 after acquiring an additional 1,706 shares during the period. 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.