What Can We Expect After Transdigm Group (NYSE:TDG)’s Downgrade By JP Morgan?


Transdigm Group (NYSE:TDG) Receives a Downgrade

Shares of New York-listed Transdigm Group (NYSE:TDG) Have been downgraded by investment analysts at JP Morgan. JP Morgan downgraded their rating for the $11.72 billion market cap company to a Neutral from their previous Overweight rating.

From a total of 13 analysts covering Transdigm Group Incorporated (NYSE:TDG) stock, 10 rate it a ”Buy”, 0 a “Sell”, and 4 a ”Hold”. This means that 71% of the ratings are positive. The highest target price is $280 while the lowest target price is $235. The mean of all analyst targets is $258 with a -1.94% below today’s ($218.44) stock price. Transdigm Group Incorporated was the topic of 13 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Wolfe Research initiated shares on November 20 with “Outperform” rating. RBC Capital Markets maintained TDG stock in a recent report from August 28 with “Hold” rating.

Approximately 265,641 shares of stock traded hands. TransDigm Group Incorporated (NYSE:TDG) has declined 3.05% since May 13, 2015 and is downtrending. It has underperformed by 0.43% the S&P500.

The overall sentiment of institutions has decreased to 1.16 in Q2 2015. Its down 0.27, from 1.43 in 2015Q2. The ratio fall, as 32 institutions have sold all the shares of TransDigm Group Incorporated that they owned while 120 funds have taken shares off the table. 40 funds have purchased shares for the first time while 136 added to their positions. These institutions now hold 49.13 million shares or 8.43% less than the 53.65 million shares they owned in 2015Q2.

The Fund Berkshire Partners Llc currently is holding shares equating to 100% of its total portfolio in TransDigm Group Incorporated representing a total of 1.38 million shares. Another fund,Altarock Partners Llc, is holding a total of 619,863 shares equating to 31.38% of their holdings. Additionally, Stockbridge Partners Llc has a 1.34 million share stake in TransDigm Group Incorporated which represents 16.07% of their total portfolio. The Fund, Triple Frond Partners Llc, based out of Washington, has also built up a stake in the stock, which represents a total of 14.61% of their total portfolio. Finally Levasseur Capital Partners Llc, a fund which is based in the state of California reported a total holdings of 65,580 shares.

Insider activity is a very important aspect to track on any stock. Going back to February 27, 2015, shareholders of TransDigm Group Incorporated have witnessed 0 insider purchases, and a total of 9 sales equating to a net activity of approximately $29.93 million . Leary John F sold 5,000 shares worth approximately $1.14M. Tenerowicz John sold 6,000 shares worth approximately $1.42 million. Howley W Nicholas sold 10,000 shares worth approximately $2.37 million. Iversen Bernt G Ii sold 3,640 shares worth approximately $804,634. The company insider Henderson Robert S sold 12,500 shares worth $2.84M.

TransDigm Inc. is a designer, producer and supplier of engineered aircraft components. The company has a market cap of $11.72 billion. The Components are used in commercial and military aircraft service. It has 27.86 P/E ratio. The Firm operates in three divisions: Power & Control, Airframe and Non-aviation.

According to Zacks Investment Research, “TransDigm Group, through its wholly-owned subsidiaries, including TransDigm Inc., is a leading global designer, producer and supplier of highly engineered components for use on nearly all commercial and military aircraft in service today.”