Aerospace Parts Executives Exercise Stock Options and Sell Shares Worth Hundreds of Millions

TransDigm Group Inc. (TDG) CEO Kevin M. Stein and co-COO Joel Reiss exercised stock options from January 8 to 15 and sold a substantial volume of common shares in the open market. Stein generated roughly $31.5 million (about KRW 40 billion) in proceeds from option-related share sales through a trust, and still holds equity worth several hundred billion KRW via that trust. Reiss likewise sold most of his common shares on the day he exercised his options, retaining direct holdings valued at several tens of billions of KRW, according to regulatory filings.

The company recently announced a cash-only acquisition agreement with private equity firm Vance Street Capital to buy Jet Parts Engineering and Victor Sierra Aviation Holdings for approximately $2.2 billion (around KRW 3 trillion), significantly expanding its commercial aircraft aftermarket parts and repair business. This follows last year’s $960 million purchase of Stellant Systems. In light of these deals, UBS raised its price target on TransDigm shares to $1,804 and maintained a “Buy” rating.

Headquartered in Cleveland, Ohio, TransDigm Group designs, manufactures and supplies high-value engineered components and systems for commercial and military aircraft. The company’s profitable business model rests on proprietary design rights and aftermarket parts sales throughout an aircraft’s service life, and it has broadened its product portfolio through multiple subsidiary acquisitions.