What’s Next for TransDigm Group Incorporated After Today’s Bearish Options Activity?


 What's Next for TransDigm Group Incorporated After Today's Bearish Options Activity?

In today’s session TransDigm Group Incorporated (TDG) recorded an unusually high (400) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious TDG decrease. With 400 contracts traded and 6534 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: TDG161118P00280000 closed last at: $12.2 or 37.1% up. About 109,957 shares traded hands. TransDigm Group Incorporated (NYSE:TDG) has risen 27.03% since March 10, 2016 and is uptrending. It has outperformed by 19.51% the S&P500.

Analysts await TransDigm Group Incorporated (NYSE:TDG) to report earnings on November, 10. They expect $2.94 earnings per share, up 7.69% or $0.21 from last year’s $2.73 per share. TDG’s profit will be $157.02M for 23.61 P/E if the $2.94 EPS becomes a reality. After $2.94 actual earnings per share reported by TransDigm Group Incorporated for the previous quarter, Wall Street now forecasts 0.00% EPS growth.

TransDigm Group Incorporated (NYSE:TDG) Ratings Coverage

Out of 12 analysts covering Transdigm Group Incorporated (NYSE:TDG), 7 rate it a “Buy”, 0 “Sell”, while 5 “Hold”. This means 58% are positive. Transdigm Group Incorporated has been the topic of 23 analyst reports since August 4, 2015 according to StockzIntelligence Inc. RBC Capital Markets maintained the shares of TDG in a report on Wednesday, May 11 with “Outperform” rating. As per Wednesday, August 26, the company rating was downgraded by Zacks. The stock of TransDigm Group Incorporated (NYSE:TDG) earned “Buy” rating by Jefferies on Thursday, September 22. The firm has “Buy” rating given on Wednesday, January 6 by Canaccord Genuity. The rating was downgraded by Zacks to “Hold” on Tuesday, September 1. The firm has “Hold” rating by Zacks given on Monday, September 7. The company was initiated on Friday, November 20 by Wolfe Research. The stock has “Hold” rating given by Deutsche Bank on Wednesday, August 10. KeyBanc Capital Markets upgraded the stock to “Overweight” rating in Wednesday, June 29 report. The rating was initiated by Robert W. Baird with “Outperform” on Thursday, October 6.

According to Zacks Investment Research, “TransDigm Group, through its wholly-owned subsidiaries, including TransDigm Inc., is a leading global designer, producer and supplier of highly engineered components for use on nearly all commercial and military aircraft in service today.”

Insitutional Activity: The institutional sentiment increased to 1.29 in 2016 Q2. Its up 0.06, from 1.23 in 2016Q1. The ratio improved, as 32 funds sold all TransDigm Group Incorporated shares owned while 120 reduced positions. 68 funds bought stakes while 128 increased positions. They now own 52.79 million shares or 7.22% less from 56.90 million shares in 2016Q1.
Rudman Errol M accumulated 85,127 shares or 21.45% of the stock. Profund Advsr Ltd Co accumulated 1,554 shares or 0.02% of the stock. Wellington Mgmt Grp Inc Ltd Liability Partnership holds 334,718 shares or 0.02% of its portfolio. Ithaka Grp Ltd Com last reported 3.02% of its portfolio in the stock. Korea Investment has invested 0.16% of its portfolio in TransDigm Group Incorporated (NYSE:TDG). Kanaly owns 4 shares or 0% of their US portfolio. Ladenburg Thalmann Svcs accumulated 0% or 633 shares. Moreover, Cap Int Ca has 0.36% invested in TransDigm Group Incorporated (NYSE:TDG) for 11,440 shares. Douglass Winthrop Advisors Llc last reported 1.44% of its portfolio in the stock. Co Fincl Bank holds 0.01% or 1,246 shares in its portfolio. Norinchukin Bank & Trust The last reported 2,778 shares in the company. Plante Moran Financial Advisors Limited Liability Company last reported 16 shares in the company. Brown Advisory has 0.01% invested in the company for 11,038 shares. M&T Commercial Bank has invested 0.02% of its portfolio in TransDigm Group Incorporated (NYSE:TDG). Eulav Asset Mngmt, a New York-based fund reported 36,500 shares.

Insider Transactions: Since April 20, 2016, the stock had 0 buys, and 15 sales for $70.71 million net activity. Howley W Nicholas also sold $2.11M worth of TransDigm Group Incorporated (NYSE:TDG) on Wednesday, September 14. Rufus Gregory sold $5.11 million worth of TransDigm Group Incorporated (NYSE:TDG) on Tuesday, May 10. 10,000 TransDigm Group Incorporated (NYSE:TDG) shares with value of $2.54 million were sold by Valladares Jorge. Iversen Bernt G II sold 10,000 shares worth $2.79M. Another trade for 7,500 shares valued at $2.14 million was made by Jones Roger on Thursday, September 1. On Wednesday, June 1 Henderson Robert S sold $2.66 million worth of the stock or 10,000 shares. The insider Palmer Peter sold $5.78M.

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft. The company has a market cap of $14.83 billion. The Firm operates through three divisions: Power & Control, Airframe and Non-aviation. It has a 29.35 P/E ratio. The Company’s Power & Control segment includes activities that primarily develop, produce and market systems and components that provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies.

TDG Company Profile

TransDigm Group Incorporated (TransDigm), incorporated on July 8, 2003, is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft. The Firm operates through three divisions: Power & Control, Airframe and Non-aviation. The Firm designs, produces and supplies aerospace components (and certain systems/subsystems) with aftermarket content. The Firm focuses to develop customized products to solve specific needs for aircraft operators and manufacturers. The Firm maintains approximately 50 manufacturing facilities.

More notable recent TransDigm Group Incorporated (NYSE:TDG) news were published by: Fool.com which released: “Why TransDigm Group Incorporated’s Shares Popped 11% Today” on May 10, 2016, also Streetinsider.com with their article: “Form 8-K TransDigm Group INC For: Oct 12” published on October 12, 2016, Prnewswire.com published: “TransDigm Group Incorporated Completes Tender Offer For Shares Of Breeze …” on January 04, 2016. More interesting news about TransDigm Group Incorporated (NYSE:TDG) were released by: Fool.com and their article: “Why TransDigm Group Incorporated’s Shares Dropped 16% Today” published on February 09, 2016 as well as Profitconfidential.com‘s news article titled: “TransDigm Group Incorporated: Is TDG Stock About to Surge?” with publication date: September 15, 2016.

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