TransDigm Group (NYSE:TDG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The brokerage currently has a $317.00 target price on the aerospace company’s stock. Zacks Investment Research‘s target price points to a potential upside of 11.44% from the stock’s previous close.
According to Zacks, “TransDigm’s first-quarter fiscal 2018 adjusted earnings grew whopping 121.4% year over year, driven by 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 generate sufficient organic & inorganic growth in recent quarters. It has also driven operating margin expansion over the past few quarters. This apart, TransDigm’s strategic acquisitions in the proprietary aerospace businesses has bolstered its aftermarket content, significantly supplementing sales. However, mounting interest expenses and escalating debt burden continue to bother TransDigm’s financials. Further, the company is seeing some negative trends at present, like soft business jet and helicopter revenues, which might dent top-line growth in the near future.”
Other analysts also recently issued reports about the company. Royal Bank of Canada set a $370.00 target price on TransDigm Group and gave the stock a “buy” rating in a research note on Wednesday, January 24th. Jefferies Group set a $323.00 price objective on TransDigm Group and gave the stock a “hold” rating in a research report on Wednesday, February 7th. SunTrust Banks reissued a “buy” rating on shares of TransDigm Group in a research report on Friday, January 19th. Credit Suisse Group reissued an “outperform” rating and set a $337.00 price objective (up from $320.00) on shares of TransDigm Group in a research report on Wednesday, February 7th. Finally, Robert W. Baird raised their price objective on TransDigm Group from $300.00 to $320.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 7th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Buy” and an average price target of $309.94.
TransDigm Group (NYSE:TDG) last issued its earnings results on Tuesday, February 6th. The aerospace company reported $2.43 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.64 by ($0.21). TransDigm Group had a negative return on equity of 27.70% and a net margin of 18.95%. The company had revenue of $847.96 million during the quarter, compared to analyst estimates of $860.12 million. During the same period last year, the business earned $2.57 earnings per share. The firm’s revenue was up 4.2% compared to the same quarter last year. equities analysts expect that TransDigm Group will post 14.92 EPS for the current year.
In other TransDigm Group news, Director Raymond F. Laubenthal sold 11,900 shares of TransDigm Group stock in a transaction dated Tuesday, January 16th. The stock was sold at an average price of $295.87, for a total value of $3,520,853.00. Following the completion of the transaction, the director now directly owns 81,718 shares of the company’s stock, valued at approximately $24,177,904.66. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO W Nicholas Howley sold 63,776 shares of TransDigm Group stock in a transaction dated Thursday, November 16th. The shares were sold at an average price of $268.60, for a total value of $17,130,233.60. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 94,548 shares of company stock valued at $25,894,245. 11.45% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. grew its position in TransDigm Group by 43.8% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 519 shares of the aerospace company’s stock valued at $142,000 after acquiring an additional 158 shares in the last quarter. Whittier Trust Co. of Nevada Inc. boosted its stake in shares of TransDigm Group by 540.5% in the 4th quarter. Whittier Trust Co. of Nevada Inc. now owns 538 shares of the aerospace company’s stock valued at $148,000 after buying an additional 454 shares during the period. HighTower Advisors LLC purchased a new position in shares of TransDigm Group in the 2nd quarter valued at about $201,000. Neville Rodie & Shaw Inc. purchased a new position in shares of TransDigm Group in the 4th quarter valued at about $205,000. Finally, Alps Advisors Inc. purchased a new position in shares of TransDigm Group in the 4th quarter valued at about $205,000.
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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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