TGI - Why Shares of Triumph Group Are Up Today
Shares of Triumph Group (NYSE: TGI) surged 13% higher on Friday after the aerospace supplier was mentioned as a potential takeover target. After years of underperformance, the company is slowly getting its act together, but investors need to be careful about getting too excited right now.
Triumph is a collection of aerospace component businesses that had fallen on hard times prior to the coronavirus pandemic, with its shares losing about 70% of their value from midyear 2013 to the end of 2019 due to profitability issues. The company appointed Daniel J. Crowley as CEO in 2016 with a mandate to simplify operations and improve profitability, and Triumph in the years since has made steady progress selling underperforming businesses.
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