TransDigm Rises in Price Falls in Performance as Surging Volume Pushes It to 149th in Market Activity

Generated by AI AgentAinvest Volume Radar
Thursday, Aug 28, 2025 7:42 pm ET1min read
Aime RobotAime Summary

- TransDigm Group (TDG) rose 0.22% on 2025/8/28 with trading volume surging 69.97% to $0.60 billion, ranking 149th in market activity despite recent challenges.

- Analysts maintain a strong buy consensus (17 of 23 recommend 'Strong Buy'), with a $1,619.82 mean price target (16.1% upside), though Q3 results triggered a 11.9% single-day drop after missing revenue/earnings estimates.

- TransDigm’s resilient business model features high-margin defense contracts (13% YoY growth), 54.4% EBITDA margin, and $1.88 billion 2024 free cash flow, supported by strategic aerospace acquisitions.

- Margins contracted despite 9.3% YoY sales growth to $2.2 billion, yielding 6.7% adjusted EPS ($9.60) below expectations, highlighting execution risks amid strong underlying fundamentals.

TransDigm Group (TDG) rose 0.22% on 2025/8/28, with trading volume surging 69.97% to $0.60 billion, ranking 149th in market activity. Analysts remain optimistic despite recent challenges.

Analysts have maintained a strong buy consensus, with 17 of 23 covering the stock recommending "Strong Buy." The mean price target of $1,619.82 suggests a 16.1% upside from current levels. However, Q3 results revealed a 11.9% single-day drop after missing revenue and earnings estimates, despite a 9.3% year-over-year sales increase to $2.2 billion. Margins contracted, resulting in a 6.7% adjusted EPS growth to $9.60, below expectations.

TransDigm’s business model is resilient, with a focus on high-margin defense contracts and stable aftermarket services. The defense segment grew 13% year-over-year, while the 54.4% EBITDA margin and $1.88 billion in 2024 free cash flow highlight operational strength. Strategic acquisitions of niche aerospace firms further reinforce its competitive edge, insulating it from broader industry headwinds.

Query limit exceeded.

Comments



Add a public comment...
No comments

No comments yet