5 Stocks to Buy in 2022 According to Mark Massey’s AltaRock Partners

2. TransDigm Group Incorporated (NYSE:TDG)

AltaRock Partners’ Stake Value: $926,020,000
Percentage of AltaRock Partners’ 13F Portfolio: 23.61%
Number of Hedge Fund Holders: 64

TransDigm Group Incorporated (NYSE:TDG) manufactures, designs, and supplies engineered aviation components for commercial and military aircrafts. TransDigm Group Incorporated (NYSE:TDG) on May 10 posted earnings for the March quarter. The reported EPS came in at $3.86, beating estimates by $0.17. Revenue over the period gained 11.8% as compared to the previous year’s quarter, reaching $1.33 billion, outperforming estimates by $20 million.

Susquehanna analyst Charles Minervino cut TransDigm Group Incorporated (NYSE:TDG)’s price objective to $620 from $720 on May 11 but maintained a Neutral rating on the stock. The analyst raised his estimates, noting a stronger-than-expected comeback in Commercial Aftermarket and lower costs, which brought adjusted EBITDA margins closer to historical highs.

AltaRock Partners started building its position in TransDigm Group Incorporated (NYSE:TDG) in the fourth quarter of 2014. In Q1 2022, the hedge fund strengthened its position in TransDigm Group Incorporated (NYSE:TDG) by buying 70,225 additional shares. This makes its stake in TransDigm Group Incorporated (NYSE:TDG) total 1.42 million shares worth $926.02 million.

Overall, hedge funds are loading up on TransDigm Group Incorporated (NYSE:TDG), as 64 out of the 924 funds tracked by Insider Monkey held stakes in the search engine and ads giant in Q4 2021, up from 63 funds a quarter earlier.

In its Q2 2021 investor letter, Vulcan Value Partners mentioned TransDigm Group Incorporated (NYSE: TDG). Here is what the fund said:

“TransDigm Group Inc., another material contributor during the quarter, is an aerospace manufacturer providing highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Its business was impacted by the global pandemic; however, the company has been able to maintain margins despite strong revenue headwinds, and it continues to generate strong free cash flow.”