Latest news with #TransDigmGroupIncorporated
Yahoo
6 days ago
- Business
- Yahoo
Servotronics Deal Rewrite Ignites Shareholder Value
Servotronics, Inc. (NYSE:SVT) announced that the company, along with TransDigm Group Incorporated (NYSE:TDG), has made adjustments to the Agreement and Plan of Merger, raising the tender offer price to $47 per share from $38 per share in cash for all outstanding shares. This decision was taken soon after the company received an unsolicited takeover proposal from a third party. While the external offer is not the one that can be prioritized, it signals enhanced shareholder value. A close-up of a scientist's hands manipulating a high-powered microscope to view cells. The servo-control components provider, encompassing manufacturing capabilities for aircraft, jet engines, and missiles, signifies a specialized acquisition prey in the aerospace supply chain. Although the transaction still faces the regulatory approval process and closing conditions, among other challenges, the acquisition perfectly syncs with TransDigm's portfolio expansion plans. This is a major factor in the current stock movement, with investors reacting positively to this update, translating to a stock rise. Now that the news is out, investors are staying tuned for the next move, hoping the tender offer delivers even more attractive returns. SVT has surged by nearly 328% since the start of 2025. While we acknowledge the potential of SVT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SVT and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
Yahoo
21-05-2025
- Business
- Yahoo
TransDigm Group's (NYSE:TDG) investors will be pleased with their splendid 299% return over the last five years
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price of TransDigm Group Incorporated (NYSE:TDG) stock is up an impressive 255% over the last five years. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, TransDigm Group achieved compound earnings per share (EPS) growth of 19% per year. This EPS growth is slower than the share price growth of 29% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This optimism is visible in its fairly high P/E ratio of 46.68. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that TransDigm Group has improved its bottom line lately, but is it going to grow revenue? Check if analysts think TransDigm Group will grow revenue in the future. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, TransDigm Group's TSR for the last 5 years was 299%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! TransDigm Group's TSR for the year was broadly in line with the market average, at 13%. We should note here that the five-year TSR is more impressive, at 32% per year. Although the share price growth has slowed, the longer term story points to a business well worth watching. It's always interesting to track share price performance over the longer term. But to understand TransDigm Group better, we need to consider many other factors. For example, we've discovered 3 warning signs for TransDigm Group (2 make us uncomfortable!) that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
TransDigm Group Incorporated (TDG) to Acquire Servotronics, Inc. (SVT) in Newly Announced Merger Deal
TransDigm Group Incorporated (NYSE:TDG) and Servotronics, Inc. (NYSEAmerican:SVT) have announced a definitive agreement under which Servotronics will become an indirect wholly owned subsidiary of TransDigm. TransDigm Group Incorporated (NYSE:TDG) is mainly known for designing and supplying a broad range of specialized aerospace components used in nearly all commercial and military aircraft. The company plans to acquire all outstanding shares of Servotronics through a tender offer of $38.50 per share in cash. This offer values the deal at around $110 million, including certain tax benefits, and represents a premium of roughly 274% over Servotronics' closing share price on May 16, 2025. Once the tender offer is completed, TransDigm Group Incorporated (NYSE:TDG) intends to finalize the acquisition through a merger at the same price for any remaining shares. The transaction will be financed using TransDigm's existing cash reserves and does not depend on external financing. Servotronics, Inc. (NYSEAmerican:SVT)'s Board of Directors has unanimously approved the deal. This acquisition aligns with TransDigm Group Incorporated (NYSE:TDG)'s strategy of acquiring proprietary aerospace businesses with strong aftermarket potential. Over the past few years, the Cleveland-based company has pursued this approach with acquisitions including DART Aerospace for $360 million in 2022, Calspan for $725 million and CPI's electron device division for $1.4 billion in 2023, and Raptor Scientific for $655 million in 2024. TDG has surged by nearly 15% since the start of 2025. While we acknowledge the potential of TDG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TDG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
TransDigm Group Incorporated (TDG) to Acquire Servotronics, Inc. (SVT) in Newly Announced Merger Deal
TransDigm Group Incorporated (NYSE:TDG) and Servotronics, Inc. (NYSEAmerican:SVT) have announced a definitive agreement under which Servotronics will become an indirect wholly owned subsidiary of TransDigm. TransDigm Group Incorporated (NYSE:TDG) is mainly known for designing and supplying a broad range of specialized aerospace components used in nearly all commercial and military aircraft. The company plans to acquire all outstanding shares of Servotronics through a tender offer of $38.50 per share in cash. This offer values the deal at around $110 million, including certain tax benefits, and represents a premium of roughly 274% over Servotronics' closing share price on May 16, 2025. Once the tender offer is completed, TransDigm Group Incorporated (NYSE:TDG) intends to finalize the acquisition through a merger at the same price for any remaining shares. The transaction will be financed using TransDigm's existing cash reserves and does not depend on external financing. Servotronics, Inc. (NYSEAmerican:SVT)'s Board of Directors has unanimously approved the deal. This acquisition aligns with TransDigm Group Incorporated (NYSE:TDG)'s strategy of acquiring proprietary aerospace businesses with strong aftermarket potential. Over the past few years, the Cleveland-based company has pursued this approach with acquisitions including DART Aerospace for $360 million in 2022, Calspan for $725 million and CPI's electron device division for $1.4 billion in 2023, and Raptor Scientific for $655 million in 2024. TDG has surged by nearly 15% since the start of 2025. While we acknowledge the potential of TDG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TDG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None.
Yahoo
17-05-2025
- Business
- Yahoo
Is It Time To Consider Buying TransDigm Group Incorporated (NYSE:TDG)?
TransDigm Group Incorporated (NYSE:TDG) saw a decent share price growth of 16% on the NYSE over the last few months. The recent jump in the share price has meant that the company is trading around its 52-week high. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Let's take a look at TransDigm Group's outlook and value based on the most recent financial data to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The stock seems fairly valued at the moment according to our valuation model. It's trading around 12.93% above our intrinsic value, which means if you buy TransDigm Group today, you'd be paying a relatively reasonable price for it. And if you believe the company's true value is $1260.21, there's only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because TransDigm Group's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. View our latest analysis for TransDigm Group Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. TransDigm Group's earnings over the next few years are expected to increase by 41%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in TDG's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping an eye on TDG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. If you want to dive deeper into TransDigm Group, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for TransDigm Group you should be mindful of and 2 of these are a bit concerning. If you are no longer interested in TransDigm Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
