Zacks Investment Research lowered shares of Triumph Group (NYSE:TGI) from a hold rating to a strong sell rating in a research note issued to investors on Thursday.
According to Zacks, “A large portion of Triumph Group’s aftermarket sales comes from third-party repair and overhaul, thus exposing it to tough competition from OEMs as well as third-party organizations. Moreover, volatile energy and commodity prices can put pressure on the company’s margins. Again, the risk of third-party payments might hamper availability of credit for further product offerings. Shares of the company also underperformed the industry in the past one year. Triumph Group is subject to interest rate risk in connection with the issuance of debt. A material rise in long-term interest rates is a key risk for capital intensive stocks like Triumph Group, as defense players like this company need to rely heavily on capital markets for access to funds and make the necessary investments in product innovations. With the current U.S. economy being in favor of expanding interest rate, the credit market may not turn out to be much favorable for it.”
TGI has been the topic of a number of other research reports. UBS Group upgraded Triumph Group from a sell rating to a neutral rating and reduced their price objective for the stock from $19.00 to $14.50 in a research note on Monday, December 17th. ValuEngine cut Triumph Group from a buy rating to a hold rating in a research note on Thursday, December 13th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and two have assigned a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus target price of $23.94.
Triumph Group stock traded up $0.03 during midday trading on Thursday, reaching $13.77. The stock had a trading volume of 599,028 shares, compared to its average volume of 818,037. Triumph Group has a twelve month low of $11.16 and a twelve month high of $30.05. The stock has a market capitalization of $662.31 million, a P/E ratio of 5.44, a PEG ratio of 1.17 and a beta of 2.06.
Triumph Group (NYSE:TGI) last issued its earnings results on Thursday, November 8th. The aerospace company reported $0.40 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.39 by $0.01. Triumph Group had a positive return on equity of 68.14% and a negative net margin of 14.98%. The firm had revenue of $855.11 million for the quarter, compared to analysts’ expectations of $801.52 million. During the same quarter last year, the firm earned $0.52 earnings per share. The firm’s revenue for the quarter was up 14.8% compared to the same quarter last year. As a group, analysts predict that Triumph Group will post 1.62 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Saturday, December 15th. Shareholders of record on Friday, November 30th were paid a dividend of $0.04 per share. This represents a $0.16 dividend on an annualized basis and a dividend yield of 1.16%. The ex-dividend date was Thursday, November 29th. Triumph Group’s dividend payout ratio is presently 6.32%.
Institutional investors and hedge funds have recently modified their holdings of the business. SG Americas Securities LLC acquired a new position in shares of Triumph Group during the second quarter worth about $114,000. Trilogy Capital Inc. purchased a new stake in shares of Triumph Group during the second quarter worth about $157,000. Riverhead Capital Management LLC increased its position in shares of Triumph Group by 44.5% during the third quarter. Riverhead Capital Management LLC now owns 8,771 shares of the aerospace company’s stock worth $204,000 after acquiring an additional 2,700 shares during the last quarter. MainStreet Investment Advisors LLC purchased a new stake in shares of Triumph Group during the third quarter worth about $234,000. Finally, BlueMountain Capital Management LLC purchased a new stake in shares of Triumph Group during the second quarter worth about $274,000.
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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