Transdigm Group Incorporated (TDG) Rating Lowered to Sell at Zacks Investment Research
Transdigm Group Incorporated (NYSE:TDG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday.
According to Zacks, “Over the past six months, TransDigm’s shares have underperformed the industry’s average return. 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. The company expects almost flat growth in defense military revenue in the near term, in light of recent global events and the resultant political uncertainty. Moreover, mounting interest expenses and escalating debt burden continue to bother the company’s financials. In addition, the company faces significant integration risks and expenses. However, on the positive side, TransDigm’s strong growth in commercial aftermarket revenues looks impressive. Also, the company’s strong inorganic growth adds to its strength.”
A number of other brokerages have also recently issued reports on TDG. Cowen and Company reiterated a “market perform” rating and set a $290.00 target price (up previously from $219.00) on shares of Transdigm Group in a research report on Thursday, August 10th. BidaskClub cut shares of Transdigm Group from a “strong-buy” rating to a “buy” rating in a research report on Monday, July 31st. Canaccord Genuity reiterated a “buy” rating and set a $330.00 target price on shares of Transdigm Group in a research report on Friday, September 15th. Jefferies Group LLC reiterated a “buy” rating and set a $283.00 target price on shares of Transdigm Group in a research report on Friday, July 14th. Finally, Vertical Research restated a “buy” rating and issued a $316.00 price objective (up previously from $280.00) on shares of Transdigm Group in a research report on Thursday, August 10th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. Transdigm Group has a consensus rating of “Buy” and a consensus target price of $295.58.
Transdigm Group (NYSE:TDG) traded down 0.22% during trading on Wednesday, hitting $265.95. 125,085 shares of the company traded hands. Transdigm Group has a one year low of $203.72 and a one year high of $295.00. The firm has a 50 day moving average of $261.59 and a 200 day moving average of $260.74. The firm has a market cap of $13.81 billion, a P/E ratio of 29.58 and a beta of 0.53.
Transdigm Group (NYSE:TDG) last announced its earnings results on Tuesday, August 8th. The aerospace company reported $3.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.98 by $0.32. The business had revenue of $907.67 million during the quarter, compared to analysts’ expectations of $903.99 million. Transdigm Group had a net margin of 14.47% and a negative return on equity of 40.12%. The firm’s revenue for the quarter was up 13.8% on a year-over-year basis. During the same quarter last year, the company posted $3.09 EPS. On average, analysts expect that Transdigm Group will post $12.30 earnings per share for the current fiscal year.
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In other news, Director Raymond F. Laubenthal sold 6,000 shares of the firm’s stock in a transaction dated Friday, September 15th. The shares were sold at an average price of $254.19, for a total value of $1,525,140.00. Following the transaction, the director now owns 75,701 shares of the company’s stock, valued at approximately $19,242,437.19. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Jorge Valladares sold 5,900 shares of the firm’s stock in a transaction dated Friday, July 14th. The shares were sold at an average price of $278.03, for a total transaction of $1,640,377.00. Following the completion of the transaction, the insider now directly owns 14,900 shares in the company, valued at approximately $4,142,647. The disclosure for this sale can be found here. Insiders sold a total of 23,900 shares of company stock worth $6,521,737 in the last ninety days. Insiders own 10.52% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of TDG. Tiger Global Management LLC boosted its stake in shares of Transdigm Group by 57.4% in the 2nd quarter. Tiger Global Management LLC now owns 4,000,000 shares of the aerospace company’s stock valued at $1,075,480,000 after purchasing an additional 1,459,272 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Transdigm Group by 23.9% in the 2nd quarter. Vanguard Group Inc. now owns 4,519,006 shares of the aerospace company’s stock valued at $1,191,617,000 after purchasing an additional 873,098 shares during the last quarter. Matrix Capital Management Company LP bought a new position in shares of Transdigm Group in the 3rd quarter valued at about $178,613,000. Valinor Management L.P. bought a new position in shares of Transdigm Group in the 1st quarter valued at about $113,220,000. Finally, Capital International Investors boosted its stake in shares of Transdigm Group by 51.8% in the 2nd quarter. Capital International Investors now owns 1,332,593 shares of the aerospace company’s stock valued at $358,294,000 after purchasing an additional 454,568 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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