According to Zacks, “Triumph Group's focus on improving its organic growth has been reasonably strong, based on the addition of products and services as well as expansion of operating capacity. It is conducting vigorous divestiture of its non-core operations to help strengthen the company’s balance sheet. With respect to organic growth, a trend of consistent contract win also plays a crucial role, in boosting a company’s top line. The company's shares also outperformed its industry in the past six months. However, a large portion of Triumph Group’s aftermarket sales comes from third-party repair and overhaul, thus exposing it to tough competition from OEMs. Moreover, volatile energy and commodity prices can put the company’s margins under pressure. Geopolitical security issues and currency fluctuations may further shrink profitability, in addition to declining cargo shipments and aircraft valuations”
A number of other research firms have also weighed in on TGI. SunTrust Banks increased their target price on shares of Triumph Group to $25.00 and gave the stock a hold rating in a report on Friday, February 8th. Cowen lowered shares of Triumph Group from an outperform rating to a market perform rating and set a $22.15 target price for the company. in a report on Monday, February 11th. Bank of America upgraded shares of Triumph Group from an underperform rating to a buy rating and raised their price objective for the stock from $20.00 to $35.00 in a report on Monday, February 11th. Finally, ValuEngine lowered shares of Triumph Group from a hold rating to a sell rating in a report on Friday. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and one has issued a buy rating to the stock. The company presently has a consensus rating of Hold and an average price target of $24.66.
Triumph Group (NYSE:TGI) last posted its earnings results on Wednesday, May 8th. The aerospace company reported $1.15 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.68 by $0.47. The company had revenue of $869.03 million during the quarter, compared to analyst estimates of $842.57 million. Triumph Group had a negative net margin of 9.56% and a negative return on equity of 35.34%. Triumph Group’s revenue for the quarter was down 3.1% on a year-over-year basis. During the same period in the prior year, the business posted $1.01 earnings per share. As a group, research analysts predict that Triumph Group will post 2.58 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Saturday, June 15th. Shareholders of record on Friday, May 31st will be issued a $0.04 dividend. This represents a $0.16 annualized dividend and a yield of 0.76%. Triumph Group’s dividend payout ratio (DPR) is presently 6.43%.
In other Triumph Group news, Director Joseph Silvestri sold 22,000 shares of the firm’s stock in a transaction dated Thursday, February 28th. The shares were sold at an average price of $23.10, for a total value of $508,200.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 1.50% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of TGI. Advisor Group Inc. increased its stake in shares of Triumph Group by 312.6% during the fourth quarter. Advisor Group Inc. now owns 2,393 shares of the aerospace company’s stock valued at $28,000 after purchasing an additional 1,813 shares in the last quarter. Citigroup Inc. increased its stake in shares of Triumph Group by 1,567.6% during the fourth quarter. Citigroup Inc. now owns 5,653 shares of the aerospace company’s stock valued at $65,000 after purchasing an additional 5,314 shares in the last quarter. Flinton Capital Management LLC increased its stake in shares of Triumph Group by 18.7% during the fourth quarter. Flinton Capital Management LLC now owns 6,608 shares of the aerospace company’s stock valued at $76,000 after purchasing an additional 1,040 shares in the last quarter. Public Employees Retirement System of Ohio increased its stake in shares of Triumph Group by 7.6% during the fourth quarter. Public Employees Retirement System of Ohio now owns 7,204 shares of the aerospace company’s stock valued at $83,000 after purchasing an additional 507 shares in the last quarter. Finally, NumerixS Investment Technologies Inc bought a new position in shares of Triumph Group during the first quarter valued at approximately $86,000.
Triumph Group Company Profile
Triumph Group, Inc designs, engineers, manufactures, repairs, overhauls, and distributes aerostructures, aircraft components, accessories, subassemblies, and systems worldwide. The company operates in three segments: Integrated Systems, Aerospace Structures, and Product Support. It offers aircraft and engine-mounted accessory drives, thermal control systems and components, cargo hooks, high lift actuations, cockpit control levers, hydraulic systems and components, landing gear actuation systems, control system valve bodies, landing gear components and assemblies, electronic engine controls, main engine gear box assemblies, exhaust nozzles and ducting, fuel pumps, geared transmissions and drive train components, secondary flight control systems, fuel metering units, and vibration absorbers.
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