LPL Financial LLC has significantly augmented its investment in TransDigm Group Incorporated, signaling a noteworthy move within the aerospace and defense sector. According to its latest SEC filing, the financial firm increased its holdings by 4.9% during the first quarter, accumulating an additional 1,054 shares. This strategic acquisition brings LPL Financial’s total ownership to 22,549 shares, valued at an impressive $31,192,000 as of the most recent reporting period.
This increase in TransDigm Group stock by LPL Financial is part of a broader trend of institutional investor activity surrounding the aerospace company. During the fourth quarter, several major funds also adjusted their positions. Capital World Investors, for instance, lifted its holdings by 4.3%, acquiring 155,541 more shares to reach a total of 3,791,927 shares, valued at $4,805,434,000. FMR LLC and Capital Research Global Investors similarly increased their stakes by 0.3% and 4.8% respectively, underscoring sustained institutional confidence in TransDigm Group.
Further reinforcing this pattern, GAMMA Investing LLC executed a remarkable increase in its TransDigm Group investment during the first quarter, boosting its position by 177,412.3%. This substantial move resulted in GAMMA Investing LLC owning 1,240,811 shares, with a valuation of $1,716,401,000. Windacre Partnership LLC also grew its holdings by 3.6% in the fourth quarter, adding 25,997 shares to reach 753,997 shares, valued at $955,525,000. Collectively, institutional investors and hedge funds now command 95.78% of the company’s stock, highlighting its strong appeal among professional money managers.
Beyond institutional shifts, recent insider trading activity has also drawn attention. TransDigm Group’s CFO divested 1,800 shares of the company’s stock on June 13th at an average price of $1,450.00, totaling $2,610,000. This transaction reduced the CFO’s stake to 3,400 shares, valued at approximately $4,930,000, representing a 34.62% decrease in their position. Such insider sales often provide insights into leadership’s perspective on future company performance.
In a related development, Director Sean P. Hennessy also sold 4,700 shares of TransDigm Group on May 20th. This sale, executed at an average price of $1,436.52 per share, amounted to $6,751,644.00. Following this transaction, the director directly held 33,713 shares, with an approximate valuation of $48,429,398.76, marking a 12.24% decrease in their ownership. Over the last ninety days, company insiders have collectively sold 119,113 shares, amounting to $173,419,391, with insiders currently owning 4.09% of the company’s stock.
TransDigm Group recently released its quarterly earnings results on May 6th, reporting an earnings per share (EPS) of $9.11. This figure surpassed analysts’ consensus estimates of $8.83 by $0.28, showcasing better-than-expected profitability. Despite a negative return on equity of 38.71%, the firm maintained a healthy net margin of 21.09%. Quarterly revenue reached $2.15 billion, slightly below analyst estimates of $2.17 billion but representing a 12.0% year-over-year increase from the previous year’s $7.99 EPS. Analysts forecast TransDigm Group to post 35.13 earnings per share for the current fiscal year.
The company has also received significant attention from equity research analysts, with several revising their price targets and ratings. Morgan Stanley notably increased its target price from $1,575.00 to $1,750.00, maintaining an “overweight” rating. Similarly, UBS Group and Truist Financial also lifted their price targets and reiterated their “buy” ratings, signaling continued positive sentiment from the financial community. Northcoast Research upgraded TransDigm Group from a “neutral” to a “buy” rating with a $1,500.00 price objective, further bolstering the stock’s outlook.
Based on data from MarketBeat, TransDigm Group currently holds a consensus rating of “Moderate Buy” with a consensus target price of $1,606.47. This widespread analyst support reflects a generally optimistic view on the company’s future performance and its position in the aerospace sector. The company’s strategic financial management and consistent operational growth continue to underpin its appeal to a diverse range of investors and analysts.
TransDigm Group Incorporated is a leading global designer, producer, and supplier of highly engineered aircraft components. Its Power & Control segment offers a broad range of products, including mechanical/electro-mechanical actuators, specialized pumps and valves, ignition systems, and power conditioning devices. The company’s diversified product portfolio and significant market share solidify its foundational role in both the commercial and military aerospace industries, underpinning its sustained financial performance and investor interest.
