TransDigm group CEO executes stock transactions worth $27 million

Published 14/02/2025, 03:40
TransDigm group CEO executes stock transactions worth $27 million

CLEVELAND—TransDigm Group Inc. (NYSE:TDG), an aerospace manufacturer with a market capitalization of $74.6 billion and an impressive "GREAT" financial health rating according to InvestingPro, saw its President and CEO Kevin M. Stein recently execute a series of stock transactions, according to a filing with the Securities and Exchange Commission. On February 12, Stein sold a substantial amount of common stock, totaling $27,081,655. The shares were sold at prices ranging from $1,335.71 to $1,366.11 per share, with the current stock trading at $1,335.96. This significant transaction was conducted through the Fortuna Trust, dated June 1, 2018. According to InvestingPro analysis, the company maintains impressive gross profit margins of nearly 60% and is currently trading above its Fair Value estimate.

In addition to the sales, Stein also exercised stock options to acquire 20,000 shares at a price of $195.88 per share, amounting to a total acquisition cost of $3,917,600. This acquisition was also carried out through the Fortuna Trust.

Following these transactions, Stein holds 11,582 shares of TransDigm Group common stock directly. The transactions were conducted under a pre-arranged trading plan, as indicated in the filing.

In other recent news, TransDigm Group Inc reported first-quarter earnings that surpassed analyst expectations, although revenue fell slightly short. The aircraft components manufacturer disclosed adjusted earnings per share of $7.83, exceeding the analyst consensus of $7.64. However, revenue increased 12.1% year-over-year to $2.01 billion, slightly below estimates of $2.02 billion. A key profitability metric, TransDigm's EBITDA As Defined, rose 16.3% to $1.06 billion, with margins broadening to 52.9% from 51.0% a year earlier.

In addition, TransDigm reaffirmed its revenue guidance for fiscal 2025, projecting $8.75 billion to $8.95 billion, aligning with analyst expectations of $8.9 billion. The company also slightly elevated its adjusted EPS outlook to a range of $35.51 to $37.43, from the previous forecast of $35.36 to $37.28. During the quarter, TransDigm repurchased 252,800 shares at an average price of $1,248.65 per share, totaling approximately $316 million.

These are among the recent developments for TransDigm, which also maintained its market growth assumptions, projecting commercial OEM revenue growth in the mid-single digit range, commercial aftermarket growth in the high-single to low-double digit range, and defense revenue growth in the high-single digit range for fiscal 2025.

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