Transdigm Group (NYSE:TDG) Sets New 1-Year Low – Should You Sell?

Transdigm Group Incorporated (NYSE:TDG) reached a new 52-week low on Thursday . The stock traded as low as $1,177.02 and last traded at $1,187.0450, with a volume of 76532 shares changing hands. The stock had previously closed at $1,199.94.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Zacks Research upgraded shares of Transdigm Group from a “strong sell” rating to a “hold” rating in a research report on Monday, December 8th. KeyCorp downgraded Transdigm Group from an “overweight” rating to a “sector weight” rating in a research note on Thursday, February 5th. UBS Group lowered their price target on Transdigm Group from $1,804.00 to $1,800.00 and set a “buy” rating on the stock in a report on Wednesday, February 4th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Transdigm Group in a report on Monday, December 29th. Finally, Robert W. Baird reiterated a “neutral” rating and set a $1,400.00 price objective on shares of Transdigm Group in a research report on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,584.44.

Transdigm Group Stock Down 1.0%

The stock has a market capitalization of $67.09 billion, a PE ratio of 38.33, a price-to-earnings-growth ratio of 2.58 and a beta of 0.93. The business’s fifty day moving average is $1,335.36 and its two-hundred day moving average is $1,319.22.

Transdigm Group (NYSE:TDG) last released its quarterly earnings data on Tuesday, February 3rd. The aerospace company reported $8.23 EPS for the quarter, beating 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 analyst estimates of $2.26 billion. During the same quarter last year, the business earned $7.83 earnings per share. Transdigm Group’s quarterly revenue 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. Sell-side analysts expect that Transdigm Group Incorporated will post 35.13 EPS for the current fiscal year.

Insider Activity at Transdigm Group

In related news, COO Patrick Joseph Murphy sold 290 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $1,430.10, for a total transaction of $414,729.00. Following the sale, the chief operating officer owned 1,055 shares in the company, valued at approximately $1,508,755.50. This represents a 21.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Michael Lisman acquired 950 shares of the company’s stock in a transaction on Friday, February 6th. The shares were purchased at an average cost of $1,284.26 per share, with a total value of $1,220,047.00. Following the completion of the purchase, the chief executive officer directly owned 3,259 shares of the company’s stock, valued at $4,185,403.34. This trade represents a 41.14% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 116,548 shares of company stock valued at $162,572,393 over the last ninety days. 3.20% of the stock is currently owned by company 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. Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of 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 purchasing an additional 4,870 shares during the period. Citizens Financial Group Inc. RI lifted its holdings in Transdigm Group by 272.4% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 3,009 shares of the aerospace company’s stock valued at $3,965,000 after buying an additional 2,201 shares in the last quarter. Principal Financial Group Inc. boosted its position in Transdigm Group by 18.3% in 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 buying an additional 367,756 shares during the period. WINTON GROUP Ltd bought a new position in Transdigm Group in the 2nd quarter worth about $3,041,000. Finally, Vulcan Value Partners LLC increased its position in shares of Transdigm Group by 7.8% during the third 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 during the period. 95.78% of the stock is owned by hedge funds and other 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.