TransDigm Group (TDG) Stock Price Declined Despite Strong Results

Investment management company Vulcan Value Partners recently released its second quarter 2022 investor letter. A copy of the same can be downloaded here. The firm carries five strategies and all these strategies trailed their benchmark index in the second quarter of 2022. The fund’s Large-Cap Composite returned -28.4% net of fees and expenses, Small Cap Composite returned net -25.8%, Focus Composite returned net -22.8%, Focus Plus composite returned net -22.9% and All Cap Composite returned net -29.1% during the quarter. You can check the top 5 holdings of the fund to know its best picks in 2022.

Vulcan Value Partners discussed stocks like TransDigm Group Incorporated (NYSE:TDG) in the second quarter investor letter. Based in Cleveland, Ohio, TransDigm Group Incorporated (NYSE:TDG) is an aerospace manufacturing company. On August 23, 2022, TransDigm Group Incorporated (NYSE:TDG) stock closed at $638.77 per share. One-month return of TransDigm Group Incorporated (NYSE:TDG) was 6.52% and its shares gained 5.75% of their value over the last 52 weeks. TransDigm Group Incorporated (NYSE:TDG)  has a market capitalization of $34.644 billion.

Here is what Vulcan Value Partners specifically said about TransDigm Group Incorporated (NYSE:TDG):

“TransDigm Group Incorporated (NYSE:TDG) is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales of sole-sourced products. The company produces high levels of free cash flow and has an effective, shareholder-oriented management team who are good capital allocators. Despite the company’s strong results during the quarter and solid outlook, its stock price declined.”

Photo by NASA on Unsplash

TransDigm Group Incorporated (NYSE:TDG) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, TransDigm Group Incorporated (NYSE:TDG) was held by 66 hedge fund portfolios at the end of the first quarter, which was 64 in the previous quarter.

We discussed TransDigm Group Incorporated (NYSE:TDG) in another article and shared the top stock picks of value investor David Abrams. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.