Market News

Top Insider Laps up TransDigm Shares Worth $26M

Story Highlights

A major insider lapped up TDG shares worth about $26 million. The move comes after the company’s recent Q2 performance and DART acquisition.

Insiders are making major positive moves at TransDigm Group (TDG). Yesterday, TDG Director Robert Small lapped up TDG shares worth about $26.63 million in two transactions. Small purchased a total of 47,851 shares of the company.

According to the Tipranks Insider Trading Tool, Small has been a major buyer of TDG shares with a success rate of 93% and an average profit of 41.2%. After these transactions, Small’s holding in TDG is now valued at about $1.5 billion.

Recent Developments

These transactions come on the heels of TDG’s recent second-quarter outperformance on its bottom-line front. In line with the consensus estimate, revenue grew 11.1% over the prior year to $1.33 billion. Earnings of $3.86 per share beat expectations by $0.17 per share on the back of a favorable sales mix, lower refinancing, and COVID-19 restructuring costs.

Additionally, earlier in March, TDG acquired DART Aerospace for a consideration of $360 million. DART is a leader in helicopter mission equipment and is expected to generate $100 million in revenue in 2022.

Analyst’s Take

Jefferies analyst Sheila Kahyaoglu has reiterated a Buy rating on the stock but decreased the price target to $710 from $745.

Overall, the Street has a Moderate Buy consensus rating on TDG based on five Buys and two Holds. The average TDG price target of $685.71 implies a potential upside of 21.33%. That’s after a nearly 12% slide in the share price so far in 2022.

Closing Note

This major insider buying activity comes at a time when the broader markets are in turmoil, and should buoy investor sentiment toward the stock. Until now, TDG shares have outperformed the S&P 500 index, which is down about 17% so far in 2022. The recent quarterly performance, acquisitions, and insider activity may help maintain this momentum.

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