Insider Trading in Focus: TransDigm Group Incorporated (TDG)

TransDigm Group Incorporated (NYSE:TDG) insider has recently participated in insider trading activity. Director, SMALL ROBERT J bought 49,910 shares for $10,095,829 via one transaction Feb 16. Following the transaction, the insider now owns 2,962,756 shares in total, priced at $614564477.1 as of Wednesday. Another notable insider trading was done by the same insider on Feb 16. SMALL ROBERT J acquired 17,390 shares at an average price of $197.88 for a total of $3,441,062. Moreover, this insider carried out a purchase of 200,000 shares at $194.51 each on Feb 12. The transaction amounted to $38,902,199. The insider also bought 250,000 shares for $47,045,451 through one transaction Feb 11.

The stock has experienced a total of 18 insider trades in the past three months. These trades include 10 sell activities and 8 buy trades. Furthermore, over the past 12 months, the stock was traded 65 times by insiders. In 43 of these trades, the insider was a seller while an employee of the company was the buyer in twenty two instances.

TransDigm Group Incorporated (TDG) on February 9, 2016 reported results for the first quarter ended January 2, 2016.

Net sales for the quarter rose 19.6%, or $114.8 million, to $701.7 million from $586.9 million in the comparable quarter a year ago. The acquisitions of the Telair Cargo Group (“Telair”), the aerospace business of Franke Aquarotter GmbH (“Franke”), the assets of the aerospace business of Pexco LLC (“Pexco”) and PneuDraulics, Inc. contributed approximately $121.4 million of the increase in net sales, partially offset by a slight decrease in organic net sales.

Net income for the quarter rose 20.3% to $114.9 million, or $1.97 per share, compared to $95.5 million, or $1.63 per share, in the comparable quarter a year ago. The increase in net income primarily reflects the growth in net sales described above, lower effective tax rate, and strength of our proprietary products and continued productivity efforts.  This growth in net income was partially offset by higher interest expense, non-cash compensation and acquisition-related costs.

Earnings per share were reduced in both 2016 and 2015 by $0.05 and $0.06 per share respectively, representing dividend equivalent payments during each quarter.

Adjusted net income for the quarter rose 26.5% to $128.7 million, or $2.27 per share, from $101.8 million, or $1.80 per share, in the comparable quarter a year ago.

EBITDA for the quarter increased 15.2% to $302.2 million from $262.5 million for the comparable quarter a year ago.  EBITDA As Defined for the period increased 18.4% to $319.4 million compared with $269.7 million in the quarter a year ago.  EBITDA As Defined as a percentage of net sales for the quarter was 45.5%.