TransDigm Group Director Sells $7.2 Million in Shares

TransDigm Group Incorporated (NYSE:TDG) Director W Nicholas Howley completed a notable stock transaction on February 18. He sold a total of 5,472 shares at an average price of $1,315.93 each, amounting to a significant total of $7,200,768.96. After this sale, Howley holds 21,548 shares in TransDigm, which are currently valued at about $28,355,659.64. This sale represents a reduction of 20.25% in his ownership stake in the company.

The details of this transaction were made public through a legal filing with the Securities and Exchange Commission (SEC), accessible for public review.

Recent Stock Performance

In recent trading, TransDigm's stock price experienced a decline of 2.3%, falling by $30.98 to reach a trading price of $1,311.47. During this time, about 150,357 shares changed hands, which is below the average trading volume of 266,717 shares. The company's current market cap stands at approximately $73.55 billion, with a P/E ratio of 46.26, and a P/E/G ratio of 2.73. The stock's 50-day moving average is $1,304.65, while the 200-day moving average is $1,319.33. Over the past year, TransDigm has seen a low of $1,136.27 and a high of $1,451.32.

Quarterly Earnings Report

TransDigm Group recently released its earnings report on February 4, revealing earnings per share (EPS) of $7.57 for the quarter. This figure exceeded the Wall Street consensus estimate of $6.73, outperforming expectations by $0.84. The company's total revenue for the quarter was reported at $2.01 billion, slightly below the analysts’ forecasts of $2.03 billion. Year over year, TransDigm's revenue increased by 12.1%, compared to the same quarter last year when it reported an EPS of $7.16. Analysts predict that the company will report an EPS of 35.13 for the current fiscal year.

Institutional Activity

Institutional investors have shown interest in TransDigm, with several hedge funds adjusting their positions in the stock. For example, Souders Financial Advisors increased its stake by 1.0%, while Prosperity Financial Group raised its position by 3.6%. Additionally, Resonant Capital Advisors and Quent Capital have also made slight increases in their holdings. Overall, institutional ownership comprises about 95.78% of TransDigm's shares.

Analyst Ratings

Equity analysts have provided varying assessments of TransDigm Group, with several institutions issuing upgrades. StockNews.com raised its rating from "hold" to "buy," while Citigroup adjusted its price target from $1,563.00 to $1,600.00, maintaining a "buy" designation. Other firms like KeyCorp and Wells Fargo have also set ambitious price targets, signaling a generally positive outlook for the stock. Currently, the average rating for TransDigm is considered a "Moderate Buy" with a target price set at $1,462.35.

Company Overview

TransDigm Group Incorporated is engaged in the design and manufacturing of aircraft components, serving both U.S. and international markets. Their offerings include a wide range of products, such as mechanical actuators, ignition systems, pumps and valves, electric motors, batteries, and cargo handling systems.

Conclusion

In summary, the recent sale by a director and ongoing stock performance highlight significant activity within TransDigm Group. Investors and analysts will be watching closely as TransDigm continues to navigate market challenges and opportunities for growth.

TransDigm, Stocks, Sale