TransDigm Group (TDG) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of TransDigm Group (NYSE:TDG) from a buy rating to a hold rating in a research note released on Thursday.

According to Zacks, “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 and drive operating margin expansion over the past few quarters. This apart, TransDigm’s strategic acquisitions in the proprietary aerospace businesses has bolstered its aftermarket content, thus supplementing sales. However, mounting interest expenses and escalating debt burden continue to bother TransDigm’s financials. Further, TransDigm is seeing some negative trends at present, like soft business jet and freighter revenues, which might dent its top line growth in the near future. The company has some concerns about the commercial transport industry in the coming times as well. In light of such adversity, the company’s shares have dismally underperformed the industry average, over the past year.”

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Other analysts have also recently issued research reports about the stock. Morgan Stanley raised their price objective on shares of TransDigm Group from $306.00 to $321.00 and gave the stock an equal weight rating in a report on Thursday. Bank of America raised their price objective on shares of TransDigm Group from $305.00 to $350.00 and gave the stock a buy rating in a report on Thursday, February 8th. Robert W. Baird raised their price objective on shares of TransDigm Group from $300.00 to $320.00 and gave the stock an outperform rating in a report on Wednesday, February 7th. Credit Suisse Group reissued an outperform rating and set a $337.00 price objective (up previously from $320.00) on shares of TransDigm Group in a report on Wednesday, February 7th. Finally, Jefferies Group set a $323.00 price objective on shares of TransDigm Group and gave the stock a hold rating in a report on Wednesday, February 7th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and eleven have issued a buy rating to the stock. The stock presently has an average rating of Buy and an average price target of $324.57.

Shares of TransDigm Group stock opened at $309.22 on Thursday. TransDigm Group has a 52-week low of $229.59 and a 52-week high of $321.38. The company has a quick ratio of 1.86, a current ratio of 2.76 and a debt-to-equity ratio of -4.38. The company has a market capitalization of $16,086.38, a P/E ratio of 25.75, a PEG ratio of 1.57 and a beta of 0.78.

TransDigm Group (NYSE:TDG) last issued its quarterly 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 firm had revenue of $847.96 million during the quarter, compared to analysts’ expectations of $860.12 million. During the same quarter in the prior year, the firm earned $2.57 EPS. The firm’s revenue was up 4.2% compared to the same quarter last year. equities research analysts anticipate that TransDigm Group will post 16.69 EPS for the current fiscal year.

In other news, insider Alex Feil sold 5,444 shares of TransDigm Group stock in a transaction on Friday, February 9th. The shares were sold at an average price of $280.85, for a total value of $1,528,947.40. Following the transaction, the insider now directly owns 5,444 shares of the company’s stock, valued at approximately $1,528,947.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Jorge Valladares sold 3,250 shares of TransDigm Group stock in a transaction on Tuesday, April 10th. The shares were sold at an average price of $306.83, for a total transaction of $997,197.50. Following the completion of the transaction, the executive vice president now directly owns 12,250 shares in the company, valued at $3,758,667.50. The disclosure for this sale can be found here. Insiders sold a total of 78,894 shares of company stock worth $23,413,109 over the last ninety days. Corporate insiders own 10.52% of the company’s stock.

Institutional investors have recently made changes to their positions in the company. Vident Investment Advisory LLC increased its holdings in shares of TransDigm Group by 75.4% in the 3rd quarter. Vident Investment Advisory LLC now owns 1,179 shares of the aerospace company’s stock valued at $301,000 after acquiring an additional 507 shares during the period. Alps Advisors Inc. acquired a new position in TransDigm Group in the 4th quarter valued at $205,000. BlackRock Inc. increased its stake in TransDigm Group by 1.2% in the 4th quarter. BlackRock Inc. now owns 4,156,622 shares of the aerospace company’s stock valued at $1,141,491,000 after buying an additional 48,978 shares during the period. Vantage Financial Partners Ltd. Inc. increased its stake in TransDigm Group by 65.0% in the 4th quarter. Vantage Financial Partners Ltd. Inc. now owns 3,300 shares of the aerospace company’s stock valued at $901,000 after buying an additional 1,300 shares during the period. Finally, Candriam Luxembourg S.C.A. increased its stake in TransDigm Group by 23.3% in the 4th quarter. Candriam Luxembourg S.C.A. now owns 4,635 shares of the aerospace company’s stock valued at $1,273,000 after buying an additional 877 shares during the period.

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About TransDigm Group

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States. The company's Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, databus and power controls, hoists, winches and lifting devices, and cargo loading and handling systems.

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