Robert W. Baird Reaffirms “Neutral” Rating for Transdigm Group (NYSE:TDG)

Transdigm Group (NYSE:TDG)‘s stock had its “neutral” rating reaffirmed by investment analysts at Robert W. Baird in a report released on Wednesday, MarketBeat.com reports. They presently have a $1,400.00 price objective on the aerospace company’s stock. Robert W. Baird’s target price indicates a potential upside of 10.78% from the stock’s previous close.

A number of other brokerages have also recently issued reports on TDG. Zacks Research upgraded shares of Transdigm Group from a “strong sell” rating to a “hold” rating in a report on Monday, December 8th. Truist Financial dropped their price target on shares of Transdigm Group from $1,730.00 to $1,647.00 and set a “buy” rating on the stock in a research report on Wednesday, October 15th. Morgan Stanley lifted their price target on Transdigm Group from $1,600.00 to $1,660.00 and gave the company an “overweight” rating in a research note on Friday, November 14th. BMO Capital Markets increased their price objective on Transdigm Group from $1,420.00 to $1,500.00 and gave the stock an “outperform” rating in a research note on Thursday, November 13th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Transdigm Group in a research report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,584.44.

Transdigm Group Stock Performance

Shares of NYSE:TDG opened at $1,263.79 on Wednesday. Transdigm Group has a 52-week low of $1,183.60 and a 52-week high of $1,623.82. The business’s 50 day simple moving average is $1,355.98 and its two-hundred day simple moving average is $1,358.15. The firm has a market cap of $71.34 billion, a P/E ratio of 40.66, a PEG ratio of 2.77 and a beta of 0.92.

Transdigm Group (NYSE:TDG) last issued its earnings results on Tuesday, February 3rd. The aerospace company reported $8.23 earnings per share for the quarter, topping analysts’ consensus estimates of $7.99 by $0.24. Transdigm Group had a negative return on equity of 29.07% and a net margin of 20.50%.The company had revenue of $2.29 billion for the quarter, compared to analyst estimates of $2.26 billion. During the same period in the prior year, the firm earned $7.83 earnings per share. Transdigm Group’s revenue for the quarter was up 13.9% on a year-over-year basis. Transdigm Group has set its FY 2026 guidance at 37.420-39.340 EPS. On average, equities analysts forecast that Transdigm Group will post 35.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Robert J. Small sold 4,700 shares of Transdigm Group stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $1,290.19, for a total transaction of $6,063,893.00. Following the sale, the director directly owned 5,625 shares in the company, valued at $7,257,318.75. The trade was a 45.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Patrick Joseph Murphy sold 290 shares of the business’s stock in a transaction dated 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 completion of the transaction, the chief operating officer directly owned 1,055 shares in the company, valued at $1,508,755.50. This trade represents a 21.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 242,485 shares of company stock valued at $331,932,850. Insiders own 4.09% of the company’s stock.

Institutional Trading of Transdigm Group

Several hedge funds have recently added to or reduced their stakes in the stock. Empowered Funds LLC increased its stake in shares of Transdigm Group by 5.0% during the 1st quarter. Empowered Funds LLC now owns 1,372 shares of the aerospace company’s stock worth $1,898,000 after purchasing an additional 65 shares during the last quarter. Acadian Asset Management LLC grew its holdings in Transdigm Group by 92.3% during the first quarter. Acadian Asset Management LLC now owns 273 shares of the aerospace company’s stock valued at $376,000 after purchasing an additional 131 shares during the period. Ameritas Advisory Services LLC purchased a new stake in Transdigm Group in the second quarter worth $47,000. QRG Capital Management Inc. raised its stake in shares of Transdigm Group by 17.2% in the second quarter. QRG Capital Management Inc. now owns 1,099 shares of the aerospace company’s stock valued at $1,671,000 after buying an additional 161 shares during the period. Finally, Simplicity Wealth LLC lifted its position in shares of Transdigm Group by 246.7% during the 2nd quarter. Simplicity Wealth LLC now owns 572 shares of the aerospace company’s stock valued at $870,000 after buying an additional 407 shares during the last quarter. Institutional investors own 95.78% of the company’s stock.

Transdigm Group News Summary

Here are the key news stories impacting Transdigm Group this week:

• Positive Sentiment: Q1 results beat expectations — revenue rose ~14% to ~$2.29B and adjusted EPS topped consensus; management provided FY‑2026 guidance (EPS range) and highlighted solid aftermarket performance, supporting underlying cash generation. TransDigm Q1 Results
• Positive Sentiment: Deals that deepen aftermarket exposure — ~$3.2B of transactions bolster TransDigm’s aftermarket cash‑flow story, which investors value for recurring, higher‑margin spare‑parts sales. $3.2B Deals Article
• Neutral Sentiment: Technicals and analyst revision dynamics — some analysts (e.g., UBS) maintain buy ratings and high price targets, and technical indicators show the stock oversold, which could support a rebound if sentiment improves. Zacks Technical/Estimates Note
• Neutral Sentiment: UBS and other shops show mixed but constructive analyst positioning — UBS’s price target remains elevated (~$1,800) even as some PT tweaks are modest, leaving a sizable implied upside for buyers who lean long. UBS/Ticker Report
• Negative Sentiment: Outlook concerns and cost headwinds — commentary and coverage note that FY‑2026 profit guidance and the interest/tariff environment may fall short of some expectations, prompting investor rotation despite the beat. Seeking Alpha: Outlook Misses
• Negative Sentiment: Analyst downgrade citing margin and leverage risk — Baird cut its view, highlighting margin pressure and higher leverage as risks to valuation and near‑term performance. Baird Downgrade
• Negative Sentiment: Insider selling — a large director sale (SEC filings) and smaller COO disposals were disclosed this week; high‑value insider sales can amplify downward pressure or signal near‑term liquidity needs. Director SEC Filing COO Insider Trade

Transdigm Group Company Profile

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.