Investment analysts at Zacks Research have released their projections for Transdigm Group Incorporated (NYSE: TDG) regarding the company’s earnings per share (EPS) for the fiscal year 2028. In a report issued on December 3, 2023, analysts estimate that the aerospace company will achieve an EPS of $44.52. Currently, Zacks Research maintains a “Strong Sell” rating on Transdigm’s stock.
The consensus estimate for the company’s current fiscal year earnings stands at $35.13 per share. This follows the release of Transdigm Group’s recent earnings results on November 12, 2023, where the company reported an EPS of $10.82 for the quarter, surpassing analysts’ expectations of $10.33 by $0.49. Transdigm’s net profit margin was reported at 21.69%, although the company faced a negative return on equity of 31.91%.
During the quarter, Transdigm Group generated revenues of $2.44 billion, exceeding the anticipated $2.40 billion. This represents a year-on-year revenue increase of 11.5%, compared to the same quarter last year when the EPS was $9.83. The company has also set its guidance for fiscal year 2026, predicting an EPS range of $36.490 to $38.530.
Market Performance and Institutional Investments
Transdigm Group’s stock opened at $1,319.91 on December 4, 2023. The stock’s 50-day simple moving average is $1,315.30, while its 200-day average stands at $1,394.07. Over the past year, the stock has fluctuated between a low of $1,183.60 and a high of $1,623.82. With a market capitalization of $74.34 billion, the stock carries a price-to-earnings ratio of 41.14 and a price-to-earnings-growth ratio of 3.00. The beta is reported at 0.94, indicating a relatively stable performance compared to the wider market.
Several institutional investors have recently adjusted their holdings in Transdigm Group. For instance, Townsquare Capital LLC increased its position by 14.5% during the first quarter, now owning 4,993 shares valued at approximately $6.91 million. Other notable changes include Zions Bancorporation National Association UT, which acquired a new stake valued at $80,000, and Cynosure Group LLC, increasing its stake by 8.2%.
Overall, institutional and hedge fund investors collectively hold 95.78% of Transdigm Group’s stock, reflecting strong institutional confidence in the company’s potential.
Insider Trading Activity
In recent insider trading activities, Robert J. Small, a director at Transdigm Group, sold 90,953 shares on December 9, 2023, for an average price of $1,335.72, totaling approximately $121.49 million. Following this transaction, Small retains 68,139 shares valued at around $91.01 million, marking a 57.17% decrease in his holdings.
Another director, Kevin M. Stein, also sold 17,526 shares on December 4, 2023, at an average price of $1,362.29, with a total value of about $23.88 million. After this sale, Stein’s direct ownership stands at 8,158 shares, valued at approximately $11.11 million, indicating a 68.24% reduction in his stake.
Over the last 90 days, insiders have sold a total of 149,447 shares valued at approximately $199.64 million, and insiders currently own 4.09% of the company’s stock.
Transdigm Group, headquartered in the United States, designs, produces, and supplies aircraft components both domestically and internationally. The company specializes in a variety of sectors, including mechanical and electro-mechanical actuators, ignition systems, and specialized pumps and valves, among others.
As Transdigm Group continues to navigate the aerospace sector, the upcoming fiscal year will be crucial for both investors and the company’s strategic direction.
