What does TransDigm Group do?
TransDigm Group is a leading global designer, producer, and supplier of highly engineered aircraft components that are critical to the safe and effective operation of aircraft worldwide. The company operates in several key areas:
1. Power & Control: This division provides mechanical and electromechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning equipment, specialized AC/DC motors and generators, batteries and chargers, data buses and power controls, sensor products, switches and relay panels, cranes, winches and lifting equipment, and cargo loading and handling systems.
2. Airframe: This segment offers engineered latches and locking devices, engineered rods, engineered connectors and elastomeric sealing solutions, cockpit safety components and systems, cockpit displays, engineered audio, radio and antenna systems, lavatory components, seatbelts and safety restraints, engineered and custom interiors and related components, thermal protection and insulation products, lighting and control technology, and parachutes.
3. Non-Aviation: This division serves ground transportation applications with seatbelts and safety restraints, electromechanical actuators for space applications, hydraulic/electromechanical actuators and fuel valves for land-based gas turbines, fueling systems for heavy equipment used in mining, construction, and other industries, and turbine controls for energy and oil and gas markets.
TransDigm Group has a strong focus on innovation and quality, ensuring that its components are indispensable to aircraft manufacturers and operators worldwide. The company has also been known for its aggressive acquisition strategy, having acquired over 90 businesses since its formation in 1993.
Who owns TransDigm?
TransDigm Group Inc. is primarily owned by institutional investors. As of October 2024, the major institutional shareholders include:
Vanguard Group Inc.: Holds approximately 13.9% of the shares.
BlackRock Inc.: Holds approximately 11.6% of the shares.
State Street Corporation: Holds approximately 7.5% of the shares.
Capital Research Global Investors: Holds approximately 6.9% of the shares.
FMR LLC (Fidelity): Holds approximately 6.2% of the shares.
Additionally, the company’s executive officers and directors also hold a notable amount of shares. For example, W. Nicholas Howley, the Executive Chairman, holds about 2.7% of the shares, and Kevin Stein, the President & CEO, holds about 2.1% of the shares.
TransDigm Group Inc news
TransDigm downgraded to Hold from Buy at Deutsche Bank
Deutsche Bank downgraded TransDigm (TDG) to Hold from Buy with a price target of $1,348, down from $1,444. The firm thinks TransDigm can continue to deliver excess returns over the long term, but says the stock’s valuation relative to its growth “looks meaningfully less attractive” than GE Aerospace (GE). Deutsche is becoming “slightly more selective” in its aftermarket coverage heading into 2025 as traffic growth decelerates and the upside revision outlook slows for some.