Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

TransDigm Group Incorporated (TDG): Hedge Funds and Insiders Are Bullish, What Should You Do?

In the 21st century investor’s toolkit, there are dozens of gauges investors can use to watch the equity markets. Some of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outclass the market by a very impressive margin (see just how much).

Equally as necessary, positive insider trading activity is another way to analyze the stock market universe. As the old adage goes: there are many motivations for an upper level exec to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this strategy if investors know what to do (learn more here).

Keeping this in mind, it’s important to discuss the latest info about TransDigm Group Incorporated (NYSE:TDG).

TransDigm Group Incorporated (NYSE:TDG)

How are hedge funds trading TransDigm Group Incorporated (NYSE:TDG)?

In preparation for the third quarter, a total of 47 of the hedge funds we track were long in this stock, a change of 21% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully.

When using filings from the hedgies we track, Stephen Mandel’s Lone Pine Capital had the most valuable position in TransDigm Group Incorporated (NYSE:TDG), worth close to $400.7 million, accounting for 2% of its total 13F portfolio. Sitting at the No. 2 spot is Alan Fournier of Pennant Capital Management, with a $337.5 million position; the fund has 6.3% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Lee Ainslie’s Maverick Capital, Bain Capital’s Brookside Capital and Andrew J. M. Spokes’s Farallon Capital.

As one would understandably expect, particular hedge funds have jumped into TransDigm Group Incorporated (NYSE:TDG) headfirst. Lone Pine Capital, managed by Stephen Mandel, assembled the most outsized position in TransDigm Group Incorporated (NYSE:TDG). Lone Pine Capital had 400.7 million invested in the company at the end of the quarter. Alan Fournier’s Pennant Capital Management also made a $337.5 million investment in the stock during the quarter. The following funds were also among the new TDG investors: Lee Ainslie’s Maverick Capital, Bain Capital’s Brookside Capital, and Andrew J. M. Spokes’s Farallon Capital.

How have insiders been trading TransDigm Group Incorporated (NYSE:TDG)?

Insider buying made by high-level executives is best served when the company we’re looking at has experienced transactions within the past half-year. Over the latest 180-day time frame, TransDigm Group Incorporated (NYSE:TDG) has experienced 2 unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to TransDigm Group Incorporated (NYSE:TDG). These stocks are Triumph Group Inc (NYSE:TGI), B/E Aerospace Inc (NASDAQ:BEAV), Embraer SA (ADR) (NYSE:ERJ), Rockwell Collins, Inc. (NYSE:COL), and L-3 Communications Holdings, Inc. (NYSE:LLL). This group of stocks are the members of the aerospace/defense products & services industry and their market caps are similar to TDG’s market cap.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.