Transdigm Group Incorporated (NYSE:TDG) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $252.78, but opened at $245.88. Transdigm Group shares last traded at $247.54, with a volume of 849,030 shares traded.
The company reported $2.57 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.48 by $0.09. The firm earned $814 million during the quarter, compared to analysts’ expectations of $804.52 million. Transdigm Group had a negative return on equity of 71.44% and a net margin of 17.30%. Transdigm Group’s revenue was up 16.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.27 earnings per share.
Several research analysts have issued reports on TDG shares. Wolfe Research upgraded Transdigm Group to an “outperform” rating in a research report on Friday, January 20th. SunTrust Banks, Inc. started coverage on Transdigm Group in a research report on Thursday, January 19th. They issued a “buy” rating and a $291.00 price objective for the company. Robert W. Baird reiterated an “outperform” rating and issued a $310.00 price objective on shares of Transdigm Group in a research report on Friday, January 20th. Deutsche Bank AG raised Transdigm Group from a “hold” rating to a “buy” rating and upped their target price for the company from $282.00 to $290.00 in a report on Tuesday, November 15th. Finally, Wellington Shields lowered Transdigm Group from a “gradually accumulate” rating to a “hold” rating in a report on Monday, November 14th. One analyst has rated the stock with a sell rating, five have given a hold rating and fourteen have assigned a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $289.20.
In related news, Director Robert J. Small bought 91,978 shares of the company’s stock in a transaction that occurred on Tuesday, December 13th. The shares were acquired at an average cost of $247.22 per share, for a total transaction of $22,738,801.16. Following the acquisition, the director now owns 31,940 shares in the company, valued at approximately $7,896,206.80. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Robert S. Henderson sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, January 3rd. The shares were sold at an average price of $250.23, for a total value of $2,502,300.00. Following the sale, the vice president now owns 20,000 shares in the company, valued at $5,004,600. The disclosure for this sale can be found here. Over the last 90 days, insiders bought 189,073 shares of company stock worth $46,603,810 and sold 50,928 shares worth $12,785,774. Company insiders own 10.52% of the company’s stock.
Large investors have recently made changes to their positions in the stock. Triple Frond Partners LLC increased its stake in shares of Transdigm Group by 16.3% in the fourth quarter. Triple Frond Partners LLC now owns 329,148 shares of the company’s stock valued at $81,945,000 after buying an additional 46,148 shares during the last quarter. FUKOKU MUTUAL LIFE INSURANCE Co bought a new stake in shares of Transdigm Group during the fourth quarter valued at approximately $448,000. Meiji Yasuda Asset Management Co Ltd. increased its stake in shares of Transdigm Group by 0.6% in the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 7,641 shares of the company’s stock valued at $1,902,000 after buying an additional 44 shares during the last quarter. Comerica Bank increased its stake in shares of Transdigm Group by 14.0% in the fourth quarter. Comerica Bank now owns 41,508 shares of the company’s stock valued at $10,470,000 after buying an additional 5,088 shares during the last quarter. Finally, State Board of Administration of Florida Retirement System increased its stake in shares of Transdigm Group by 2.7% in the fourth quarter. State Board of Administration of Florida Retirement System now owns 83,485 shares of the company’s stock valued at $20,784,000 after buying an additional 2,182 shares during the last quarter.
The company’s 50 day moving average is $240.52 and its 200 day moving average is $265.66. The company has a market cap of $13.20 billion, a price-to-earnings ratio of 23.82 and a beta of 0.49.
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.