Transdigm Group Incorporated (NYSE:TDG) Cut to Hold at Zacks Investment Research
Transdigm Group Incorporated (NYSE:TDG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “TransDigm reported third-quarter fiscal 2017 adjusted earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.98 on the back of robust top-line performance and improvements in operating margin. TransDigm’s excellent business operation model, which implements value-based operating strategies guided by three value driver concepts, has helped the company drive operating margin expansion over the past few quarters. This apart, TransDigm’s strategic acquisitions has bolstered its aftermarket content. However, on the flip side, softening discretionary retrofits, interior retrofits and weaknesses in jet and helicopter markets have impacted the company’s top-line performance in recent times. Year-to-date shares have underperformed the industry’s average return over the past one year. TransDigm’s commercial transportation business is suffering from inventory management issues from OEM customers.”
TDG has been the subject of a number of other reports. Deutsche Bank AG reaffirmed a “buy” rating and set a $305.00 price target on shares of Transdigm Group in a research note on Tuesday, June 13th. Royal Bank Of Canada reaffirmed a “buy” rating and set a $316.00 price target on shares of Transdigm Group in a research note on Friday, May 19th. Canaccord Genuity reaffirmed a “buy” rating and set a $300.00 price target on shares of Transdigm Group in a research note on Saturday, April 22nd. Stephens downgraded Transdigm Group from an “equal weight” rating to an “underweight” rating and set a $230.00 price target for the company. in a research note on Thursday, August 3rd. Finally, Morgan Stanley reaffirmed an “equal weight” rating and set a $281.00 price target (up from $245.00) on shares of Transdigm Group in a research note on Thursday, July 13th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and an average target price of $297.52.
Shares of Transdigm Group (TDG) traded up 1.60% on Monday, reaching $278.75. 145,762 shares of the company traded hands. The company has a market capitalization of $14.47 billion, a PE ratio of 30.97 and a beta of 0.56. The firm has a 50-day moving average of $276.84 and a 200-day moving average of $252.79. Transdigm Group has a 52-week low of $203.72 and a 52-week high of $295.00.
Transdigm Group (NYSE:TDG) last posted its quarterly earnings results on Tuesday, August 8th. The aerospace company reported $3.30 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.98 by $0.32. Transdigm Group had a negative return on equity of 40.12% and a net margin of 14.47%. The company had revenue of $907.67 million during the quarter, compared to the consensus estimate of $903.99 million. During the same period last year, the business earned $3.09 EPS. The business’s quarterly revenue was up 13.8% on a year-over-year basis. On average, equities research analysts forecast that Transdigm Group will post $12.29 earnings per share for the current fiscal year.
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In other news, insider Jorge Valladares sold 100 shares of Transdigm Group stock in a transaction that occurred on Wednesday, July 12th. The stock was sold at an average price of $276.00, for a total transaction of $27,600.00. Following the sale, the insider now owns 9,100 shares of the company’s stock, valued at approximately $2,511,600. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Raymond F. Laubenthal sold 6,000 shares of Transdigm Group stock in a transaction that occurred on Monday, July 17th. The stock was sold at an average price of $281.81, for a total value of $1,690,860.00. Following the sale, the director now directly owns 75,701 shares in the company, valued at approximately $21,333,298.81. The disclosure for this sale can be found here. Insiders have sold a total of 18,000 shares of company stock worth $4,952,017 in the last three months. 10.52% of the stock is owned by insiders.
Several hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Transdigm Group by 1.6% in the second quarter. Vanguard Group Inc. now owns 4,824,369 shares of the aerospace company’s stock valued at $1,297,129,000 after buying an additional 76,897 shares during the last quarter. BlackRock Inc. raised its stake in shares of Transdigm Group by 0.9% in the second quarter. BlackRock Inc. now owns 3,992,584 shares of the aerospace company’s stock valued at $1,073,487,000 after buying an additional 37,025 shares during the last quarter. Principal Financial Group Inc. raised its stake in shares of Transdigm Group by 16.0% in the first quarter. Principal Financial Group Inc. now owns 2,651,540 shares of the aerospace company’s stock valued at $583,763,000 after buying an additional 366,443 shares during the last quarter. State Street Corp raised its stake in shares of Transdigm Group by 1.7% in the first quarter. State Street Corp now owns 2,229,338 shares of the aerospace company’s stock valued at $490,796,000 after buying an additional 36,321 shares during the last quarter. Finally, Morgan Stanley raised its stake in shares of Transdigm Group by 37.7% in the first quarter. Morgan Stanley now owns 1,408,740 shares of the aerospace company’s stock valued at $310,149,000 after buying an additional 385,775 shares during the last quarter.
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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