Transdigm Group Incorporated (TDG) Raised to “Hold” at Zacks Investment Research
Zacks Investment Research upgraded shares of Transdigm Group Incorporated (NYSE:TDG) from a sell rating to a hold rating in a report released on Wednesday morning.
According to Zacks, “TransDigm’s excellent business operation model, which implements value-based operating strategies guided by three value driver concepts, has helped the company generate sufficient organic & inorganic growth and drive operating margin expansion over the past few quarters. This apart, TransDigm’s strategic acquisitions in the proprietary aerospace businesses has bolstered its aftermarket content, thus supplementing sales. However, mounting interest expenses and escalating debt burden continue to bother TransDigm’s financials. Further, TransDigm is seeing some negative trends at present, like soft business jet, helicopter and freighter revenues, which might dent its top line growth in the near future. The company has some concerns about the commercial transport industry in the coming times as well. In light of such adversity, the company’s shares have dismally underperformed the industry average, on a year-to-date basis.”
A number of other analysts have also weighed in on TDG. Wolfe Research lowered Transdigm Group from an outperform rating to a market perform rating in a research report on Thursday, July 20th. BidaskClub lowered Transdigm Group from a strong-buy rating to a buy rating in a research report on Monday, July 31st. Stephens lowered Transdigm Group from an equal weight rating to an underweight rating and set a $230.00 price objective on the stock. in a research report on Thursday, August 3rd. Jefferies Group LLC upped their price objective on Transdigm Group from $283.00 to $322.00 and gave the stock a buy rating in a research report on Thursday, August 3rd. Finally, Canaccord Genuity reaffirmed a buy rating and set a $330.00 price objective (up previously from $300.00) on shares of Transdigm Group in a research report on Wednesday, August 9th. One research analyst has rated the stock with a sell rating, five have given a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. Transdigm Group currently has a consensus rating of Buy and a consensus target price of $296.87.
Transdigm Group (NYSE TDG) traded down $5.32 during trading on Wednesday, hitting $263.08. The stock had a trading volume of 296,427 shares, compared to its average volume of 447,676. Transdigm Group has a 1-year low of $203.72 and a 1-year high of $295.00. The company has a quick ratio of 1.51, a current ratio of 2.36 and a debt-to-equity ratio of -3.86. The stock has a market capitalization of $13,400.00, a price-to-earnings ratio of 22.50, a P/E/G ratio of 2.26 and a beta of 0.63.
Transdigm Group (NYSE:TDG) last posted its quarterly earnings data on Thursday, November 9th. The aerospace company reported $3.48 earnings per share for the quarter, topping analysts’ consensus estimates of $3.18 by $0.30. Transdigm Group had a negative return on equity of 30.13% and a net margin of 12.44%. The business had revenue of $923.89 million for the quarter, compared to analyst estimates of $959.77 million. During the same quarter in the prior year, the company earned $3.29 earnings per share. The company’s revenue was up 5.6% on a year-over-year basis. equities research analysts expect that Transdigm Group will post 12.5 EPS for the current year.
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In other Transdigm Group news, CEO W Nicholas Howley sold 63,776 shares of the firm’s stock in a transaction dated Thursday, November 16th. The stock was sold at an average price of $268.60, for a total transaction of $17,130,233.60. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Raymond F. Laubenthal sold 6,000 shares of the firm’s stock in a transaction dated Monday, October 16th. The stock was sold at an average price of $263.78, for a total value of $1,582,680.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 96,776 shares of company stock worth $25,777,794. Corporate insiders own 10.52% of the company’s stock.
Institutional investors and hedge funds have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Transdigm Group by 3.8% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 382 shares of the aerospace company’s stock worth $103,000 after buying an additional 14 shares during the period. Korea Investment CORP boosted its stake in shares of Transdigm Group by 142.6% during the second quarter. Korea Investment CORP now owns 495 shares of the aerospace company’s stock worth $133,000 after buying an additional 291 shares during the period. HighTower Advisors LLC acquired a new stake in shares of Transdigm Group during the second quarter worth about $201,000. Laurion Capital Management LP acquired a new stake in shares of Transdigm Group during the second quarter worth about $205,000. Finally, Trexquant Investment LP acquired a new stake in shares of Transdigm Group during the third quarter worth about $209,000.
About Transdigm Group
TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service. The Company operates through three segments: Power & Control, Airframe and Non-aviation. The 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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