Transdigm Group (NYSE:TDG) Cut to “Equal Weight” at Morgan Stanley

Morgan Stanley cut shares of Transdigm Group (NYSE:TDG) from an overweight rating to an equal weight rating in a report released on Wednesday morning, Marketbeat.com reports. The brokerage currently has $1,345.00 price objective on the aerospace company’s stock, down from their previous price objective of $1,680.00.

Other equities analysts have also recently issued reports about the company. Wells Fargo & Company started coverage on Transdigm Group in a research report on Wednesday, April 1st. They set an “equal weight” rating and a $1,200.00 price target on the stock. BMO Capital Markets raised their target price on Transdigm Group from $1,450.00 to $1,525.00 and gave the company an “outperform” rating in a research note on Thursday, July 2nd. Wall Street Zen raised Transdigm Group from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Stifel Nicolaus dropped their price target on shares of Transdigm Group from $1,650.00 to $1,525.00 and set a “buy” rating on the stock in a research report on Wednesday, May 6th. Finally, Weiss Ratings downgraded shares of Transdigm Group from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 2nd. Seven research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, Transdigm Group has a consensus rating of “Hold” and a consensus target price of $1,477.47.

Transdigm Group Trading Down 1.4%

TDG stock opened at $1,214.45 on Wednesday. The firm’s 50-day moving average is $1,258.81 and its two-hundred day moving average is $1,274.26. The company has a market capitalization of $67.92 billion, a price-to-earnings ratio of 37.90, a price-to-earnings-growth ratio of 2.16 and a beta of 0.90. Transdigm Group has a 52 week low of $1,123.61 and a 52 week high of $1,623.82.

Transdigm Group (NYSE:TDG) last posted its quarterly earnings data on Tuesday, May 5th. The aerospace company reported $9.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.46 by $0.39. Transdigm Group had a net margin of 20.24% and a negative return on equity of 26.49%. The business had revenue of $2.54 billion during the quarter, compared to analysts’ expectations of $2.47 billion. During the same period last year, the firm posted $9.11 earnings per share. The business’s revenue was up 18.3% on a year-over-year basis. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. On average, equities research analysts predict that Transdigm Group will post 37.96 earnings per share for the current year.

Insiders Place Their Bets

In related news, COO Joel Reiss sold 3,900 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $1,276.78, for a total value of $4,979,442.00. Following the completion of the transaction, the chief operating officer owned 3,600 shares in the company, valued at $4,596,408. This trade represents a 52.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director W Nicholas Howley sold 10,132 shares of the business’s stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $1,319.55, for a total value of $13,369,680.60. Following the sale, the director owned 21,548 shares in the company, valued at approximately $28,433,663.40. The trade was a 31.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 38,196 shares of company stock worth $47,631,730 over the last ninety days. 3.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Transdigm Group

Hedge funds have recently made changes to their positions in the company. Capital International Investors lifted its holdings in shares of Transdigm Group by 0.9% in the fourth quarter. Capital International Investors now owns 6,544,423 shares of the aerospace company’s stock valued at $8,702,655,000 after purchasing an additional 55,230 shares in the last quarter. Capital World Investors grew its holdings in shares of Transdigm Group by 0.4% during the fourth quarter. Capital World Investors now owns 3,954,512 shares of the aerospace company’s stock valued at $5,258,898,000 after buying an additional 15,825 shares in the last quarter. Capital Research Global Investors raised its position in Transdigm Group by 12.2% during the fourth quarter. Capital Research Global Investors now owns 2,476,661 shares of the aerospace company’s stock valued at $3,293,527,000 after buying an additional 268,824 shares during the period. State Street Corp raised its position in Transdigm Group by 2.8% during the fourth quarter. State Street Corp now owns 2,456,186 shares of the aerospace company’s stock valued at $3,266,359,000 after buying an additional 67,348 shares during the period. Finally, Soroban Capital Partners LP lifted its stake in Transdigm Group by 14.5% in the 1st quarter. Soroban Capital Partners LP now owns 856,197 shares of the aerospace company’s stock worth $992,298,000 after acquiring an additional 108,227 shares in the last quarter. Hedge funds and other institutional investors own 95.78% of the company’s stock.

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.