How to Buy Transdigm Group Stock
Transdigm Group Inc
Transdigm Group is a defense company located in Ohio, United States, which is part of the Industrials sector, and is traded under the ticker TDG on the NYSE exchange.
Transdigm Group stock last closed at $1,310.40, up 0.67% from the previous day, and has increased 69.67% in one year. It has overperformed other stocks in the Aerospace & Defense industry by 0.56 percentage points. Transdigm Group stock is currently +71.07% from its 52-week low of $766.00, and -0.35% from its 52-week high of $1,315.02.
At the moment, there are 55.96M TDG shares outstanding. The market cap of TDG is $73.33B. In the last 24 hours, 437,666 TDG shares were traded.
How to Buy Transdigm Group Stock
Not sure how to invest in Transdigm Group stock? Here's how.
- Figure out where to buy Transdigm Group stock: You need to decide on a stock brokerage, but don't worry - we've tried dozens of stock brokerages and apps to help you determine where to buy Transdigm Group stock.
- Sign up for your brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've identified.
- Put funds into your brokerage account: Pick your method of payment and add your information.
- Evaluate Transdigm Group stock: The Transdigm Group ticker symbol is TDG. Is Transdigm Group stock a good investment? Should you buy shares of TDG? How do TDG's underlying business fundamentals look? Do top analysts think Transdigm Group is a good buy? Why has TDG's stock price moved recently? (Hint: Our stock market analysis tools can help you understand if TDG is a good stock to buy).
- Place your TDG purchase: Decide if you will purchase TDG shares at the current market price or use a limit order to purchase TDG stock at a particular price.
- Monitor your TDG position: Create a watchlist to keep track of your investment in Transdigm Group shares.
Step 1: Figure out where to buy Transdigm Group stock
You will need an online brokerage account in order to access the NYSE market and buy TDG stock.
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Open eToro AccountStep 2: Sign up for your brokerage account
Now that you've picked your brokerage, it's time to fill out some personal information so you are able to invest in TDG today.
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- Enter your personal details to open a new trading account.
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Step 3: Put funds into your brokerage account
Now that you have filled out your info on the highest rated app to buy and sell stocks, you can securely and quickly fund your account:
Check out the tutorial below for more details depositing money into your investment account.
Step 4: Evaluate Transdigm Group stock
Once you have selected the best place to buy Transdigm Group stock, it's very important to evaluate their stock prior to buying, so you truly comprehend the risk as well as the opportunity.
Transdigm Group Numbers
Transdigm Group Zen Score
WallStreetZen was designed to help average investors do better fundamental analysis.
You can see all of the due diligence checks on TDG's stock page.
What is the fair value of TDG stock?
Analysts use a variety of different financial metrics, analyses, models, and charts to gauge TDG's true value.
Using relative valuations metrics:
- TDG may be overvalued based on its P/E ratio of 51.98x, relative to Aerospace & Defense industry P/E ratio of 22.55x
You can do additional valuation analysis on TDG's stock here.
TDG Financial Summary
Passed Health Checks:
- There are more short-term assets than short-term liabilities on the TDG balance sheet.
- TDG profit margin has gone up from 16.2% to 19.9% in the past year.
Failed Health Checks:
- TDG debt to equity ratio of -8.12 is negative.
- TDG earnings of $3.23B is not enough to cover its interest payments.
- There are more long-term liabilities than short-term assets on the TDG balance sheet.
- TDG's operating cash flow of $1.73B allows it to safely service it's debt of $22.41B.
- Total TDG debt is still negative.
Is TDG stock a Buy, Hold, or Sell, according to analysts?
Out of 10 Equities analysts who monitor TDG, the consensus analyst rating on TDG is a Strong Buy
Please keep in mind that analyst forecasts are not recommendations, nor are they investment advice.
Latest TDG Analyst Upgrades/Downgrades
An analyst from KeyBanc maintains TDG with a strong buy rating and raises their TDG price target from $1,180.00 to $1,220.00, on Feb 15, 2024.
David Strauss, a top 13% analyst from Barclays maintains TDG with a strong buy rating and raises their TDG price target from $1,150.00 to $1,250.00, on Feb 12, 2024.
Michael Ciarmoli, a top 5% analyst from Truist Securities maintains TDG with a strong buy rating and raises their TDG price target from $1,158.00 to $1,267.00, on Feb 9, 2024.
Truist Securities's Michael Ciarmoli raised their price target on Transdigm Group (NYSE: TDG) by 9.4% from $1,158 to $1,267 on 2024/02/10. The analyst maintained their Strong Buy rating on the stock.
Ciarmoli summed up Transdigm Group's Q1 2024 earnings report, released on 2024/02/08, by pointing out that the company's performance surpassed all expectations.
In spite of a decrease in its EPS guidance because of greater interest expenditure, management raised its revenue and EBITDA expectations.
Earnings Report
For Q1 2024, Transdigm Group reported:
- EPS of $7.16, which beat the Zacks Consensus Estimate of $6.37 and, by 56%, Q1 2023’s $4.58.
- Revenue of $1.79B, which beat the Zacks Consensus Estimate by 7.07% and, by 28%, Q1 2023’s $1.4B.
- Net income of $382M, up 67% Y/Y.
- EBITDA of $912M, up 30% Y/Y.
- EBITDA margin of 51.0%.
For FY 2024, management guided:
- EPS of $29.97 to $31.73.
- Revenue of $7.575B to $7.755B.
- Net income of $1.56B to $1.662B.
- EBITDA of $3.92B to $4.05B.
- EBITDA margin of 52.0%.
President & CEO Kevin Stein commented: "I am very pleased with our Q1 operating results and strong start to FY.
"Total revenue ran ahead of our expectations and our commercial aftermarket revenues further expanded.
“Our EBITDA margin was 51.0% for the quarter, up approximately 100 bps from the comparable prior year period. Excluding the results related to Calspan, acquired 2023/05, our Q1 EBITDA margin was approximately 51.8%.
“As always, we remain focused on our operating strategy, value drivers and effectively managing our cost structure.
“We look forward to the opportunity to continue creating value for our shareholders throughout the remainder of our FY 2024.
“We are raising our FY net sales and EBITDA guidance primarily to reflect our strong Q1 results and current expectations for the remainder of the fiscal year.
“On the net income line, the impact of this guidance raise will be partially offset by the additional interest expense relating to the financing activities completed during the quarter - we took on incremental debt to fund the pending acquisition of CPI's Electron Device Business.”
Kenneth Herbert, a top 4% analyst from RBC Capital maintains TDG with a buy rating and raises their TDG price target from $1,150.00 to $1,250.00, on Feb 9, 2024.
Charles Minervino, a top 18% analyst from Susquehanna maintains TDG with a hold rating and raises their TDG price target from $875.00 to $1,100.00, on Feb 9, 2024.
You can dig deeper into what analysts are forecasting on the Transdigm Group stock forecast page.
TDG Momentum
TDG Growth Metrics
Last year, TDG earnings were $1.45B. During the past 5 year, TDG's earnings have increased by 11.44% per year. This was faster than the Aerospace & Defense industry average of 0.98%.
Last year, TDG revenue was $7.30B. Over the past five year, TDG's revenue has gone up by 11.75% per year. This was faster than the Aerospace & Defense industry average of 7.8%.
Find out more about TDG's earnings and revenue performance here.
Latest Insiders Trades at TDG
In the last year, executives and large shareholders at TDG have sold more shares than they have bought.
Joel Reiss, Co-Chief Operating Officer of TDG, was the latest TDG insider to sell. They sold $33,637.98 worth of TDG stock on Apr 15, 2024.
Dig into more about who owns TDG shares here.
Does TDG stock generate passive income?
Transdigm Group pays a dividend of 2.67%, compared to the Aerospace & Defense industry's average dividend yield of 1.54%. If you owned $1,000 of TDG stock, you would have received $26.71 in the past 12 months.
Find more analysis about Transdigm Group dividend yield and history here.
TDG Social Trading Data
One of the biggest reasons eToro is our top-rated brokerage is because of its social trading community.
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Step 5: Place your TDG purchase
You have two primary types of orders:
- Market order: A market order is an order to buy or sell a stock at the best price on the market.
Market orders are generally sufficient. - Limit order: A limit order lets you buy or sell a security at a specific price (or better).
If you want to be certain you're buying or selling at a specific price, place a limit order.
Hit the Open Trade button and eToro will place your order.
If you require more assistance investing in stocks on eToro, click the helpful video below:
Step 6: Monitor your TDG position
Now that you own some shares in TDG, you'll want to keep up with your new investment.
Start a watchlist to get notified of important updates regarding your TDG stock.
TDG Feed
How to Buy Stock in Transdigm Group
To summarize, here are the 6 steps you need to take to buy Transdigm Group stock right now:
- Figure out where to buy Transdigm Group stock
- Sign up for your brokerage account
- Put funds into your brokerage account
- Evaluate Transdigm Group stock
- Place your TDG purchase
- Monitor your TDG position
If you need a brokerage account, eToro is our favorite venue.
Get Started with eToro TodayIf you would like to get the latest news on your investment in Transdigm Group, add TDG to your watchlist by clicking the button below.
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