TransDigm Group Inc. (TDG) Downgraded to “Sell” at Zacks Investment Research
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 firms have also recently issued reports on TDG. Canaccord Genuity reiterated a buy rating and issued a $325.00 price objective on shares of TransDigm Group in a report on Wednesday, September 7th. Deutsche Bank AG increased their price objective on shares of TransDigm Group from $260.00 to $300.00 and gave the company a hold rating in a report on Wednesday, August 10th. Barclays PLC increased their price objective on shares of TransDigm Group from $300.00 to $310.00 and gave the company an overweight rating in a report on Wednesday, August 10th. Jefferies Group assumed coverage on shares of TransDigm Group in a report on Thursday, September 22nd. They issued a buy rating and a $340.00 price objective for the company. Finally, Wolfe Research cut shares of TransDigm Group from an outperform rating to a market perform rating in a report on Friday, July 29th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the stock. TransDigm Group currently has a consensus rating of Hold and a consensus price target of $282.90.
Shares of TransDigm Group (NYSE:TDG) opened at 283.35 on Tuesday. The stock has a market cap of $15.09 billion, a price-to-earnings ratio of 29.97 and a beta of 0.72. TransDigm Group has a one year low of $180.76 and a one year high of $294.38. The firm has a 50-day moving average price of $286.07 and a 200-day moving average price of $260.41.
TransDigm Group (NYSE:TDG) last announced its quarterly earnings results on Tuesday, August 9th. The company reported $3.09 EPS for the quarter, beating the consensus estimate of $2.82 by $0.27. TransDigm Group had a net margin of 17.25% and a negative return on equity of 62.15%. The company had revenue of $797.70 million for the quarter, compared to analyst estimates of $805.23 million. During the same quarter last year, the business earned $2.26 earnings per share. TransDigm Group’s revenue was up 15.4% compared to the same quarter last year. Analysts anticipate that TransDigm Group will post $11.39 earnings per share for the current fiscal year.
In related news, insider Peter Palmer sold 20,500 shares of TransDigm Group stock in a transaction on Tuesday, September 13th. The shares were sold at an average price of $281.84, for a total value of $5,777,720.00. Following the transaction, the insider now owns 14,000 shares in the company, valued at approximately $3,945,760. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Bernt G. Iversen II sold 10,000 shares of TransDigm Group stock in a transaction on Monday, August 1st. The stock was sold at an average price of $278.81, for a total transaction of $2,788,100.00. Following the completion of the transaction, the insider now owns 15,010 shares in the company, valued at approximately $4,184,938.10. The disclosure for this sale can be found here. 9.30% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Fifth Third Bancorp increased its position in shares of TransDigm Group by 2.1% in the second quarter. Fifth Third Bancorp now owns 578 shares of the company’s stock valued at $152,000 after buying an additional 12 shares during the period. Advisory Services Network LLC raised 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 valued at $185,000 after buying an additional 543 shares in the last quarter. Seven Eight Capital LLC bought a new stake in TransDigm Group during the first quarter valued at about $195,000. Tower Research Capital LLC TRC bought a new stake in TransDigm Group during the second quarter valued at about $196,000. Finally, Global X Management Co. LLC raised 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 valued at $210,000 after buying an additional 341 shares in the last quarter. Hedge funds and other institutional investors own 87.73% of the company’s stock.
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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