TransDigm Group Inc. (NYSE:TDG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to 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.”
TDG has been the subject of several other research reports. Barclays PLC boosted their price target on TransDigm Group from $285.00 to $300.00 and gave the company an “overweight” rating in a report on Wednesday, June 22nd. Deutsche Bank AG boosted their price target on TransDigm Group from $260.00 to $300.00 and gave the company a “hold” rating in a report on Wednesday, August 10th. Wolfe Research lowered TransDigm Group from an “outperform” rating to a “market perform” rating in a report on Friday, July 29th. Morgan Stanley assumed coverage on TransDigm Group in a report on Thursday, June 23rd. They set an “equal weight” rating and a $287.00 price target for the company. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $271.00 price objective on shares of TransDigm Group in a research note on Saturday, June 25th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and eight have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and an average target price of $282.90.
TransDigm Group (NYSE:TDG) opened at 283.80 on Tuesday. The company has a market capitalization of $15.12 billion, a price-to-earnings ratio of 30.02 and a beta of 0.72. The company’s 50-day moving average price is $286.07 and its 200 day moving average price is $260.58. TransDigm Group has a 52-week low of $180.76 and a 52-week high of $294.38.
TransDigm Group (NYSE:TDG) last released its quarterly earnings results on Tuesday, August 9th. The company reported $3.09 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ 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 business earned $797.70 million during the quarter, compared to analyst estimates of $805.23 million. During the same quarter in the previous year, the company posted $2.26 earnings per share. TransDigm Group’s revenue for the quarter was up 15.4% on a year-over-year basis. On average, equities analysts expect that TransDigm Group will post $11.39 EPS for the current fiscal year.
In other TransDigm Group news, insider Peter Palmer sold 20,500 shares of the company’s stock in a transaction that occurred on Tuesday, September 13th. The stock was sold at an average price of $281.84, for a total transaction of $5,777,720.00. Following the sale, the insider now directly owns 14,000 shares in the company, valued at $3,945,760. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Roger Jones sold 7,500 shares of the company’s stock in a transaction that occurred on Thursday, September 1st. The shares were sold at an average price of $285.92, for a total value of $2,144,400.00. Following the sale, the insider now 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 corporate insiders.
A number of large investors have recently modified their holdings of the stock. Fifth Third Bancorp increased its stake in shares of TransDigm Group by 2.1% in the second quarter. Fifth Third Bancorp now owns 578 shares of the company’s stock worth $152,000 after buying an additional 12 shares during the period. Advisory Services Network LLC increased its stake in shares of TransDigm Group by 341.5% in the second quarter. Advisory Services Network LLC now owns 702 shares of the company’s stock worth $185,000 after buying an additional 543 shares during the period. Seven Eight Capital LLC bought a new stake in shares of TransDigm Group during the first quarter worth about $195,000. Tower Research Capital LLC TRC bought a new stake in shares of TransDigm Group during the second quarter worth about $196,000. Finally, Global X Management Co. LLC increased its stake in shares of TransDigm Group by 75.1% in the second quarter. Global X Management Co. LLC now owns 795 shares of the company’s stock worth $210,000 after buying an additional 341 shares during the period. Institutional investors and hedge funds own 87.73% of the company’s stock.
About TransDigm Group
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for TransDigm Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TransDigm Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.