Transocean (NYSE:RIG) Trading Down 6% – Here’s What Happened

Transocean Ltd. (NYSE:RIG)’s stock price traded down 6% on Tuesday . The stock traded as low as $3.83 and last traded at $3.8350. 8,229,391 shares were traded during trading, a decline of 79% from the average session volume of 38,377,723 shares. The stock had previously closed at $4.08.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on RIG. Citigroup upped their price objective on Transocean from $4.25 to $4.50 and gave the company a “neutral” rating in a research note on Thursday. JPMorgan Chase & Co. restated an “underweight” rating on shares of Transocean in a research report on Wednesday, December 10th. Barclays raised their price target on shares of Transocean from $4.00 to $4.50 and gave the company an “overweight” rating in a research note on Wednesday, November 5th. Weiss Ratings reissued a “sell (d-)” rating on shares of Transocean in a research note on Wednesday, October 8th. Finally, Morgan Stanley set a $4.50 target price on Transocean in a report on Monday. Three analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $4.48.

Transocean Stock Performance

The stock has a market capitalization of $4.19 billion, a price-to-earnings ratio of -1.16 and a beta of 1.39. The company has a 50 day simple moving average of $3.90 and a 200-day simple moving average of $3.31. The company has a quick ratio of 0.91, a current ratio of 1.08 and a debt-to-equity ratio of 0.60.

Transocean (NYSE:RIG) last announced its quarterly earnings data on Wednesday, October 29th. The offshore drilling services provider reported $0.06 EPS for the quarter, topping the consensus estimate of $0.04 by $0.02. Transocean had a negative net margin of 75.71% and a positive return on equity of 0.45%. The company had revenue of ($1,894.00) million during the quarter, compared to the consensus estimate of $1.01 billion. The company’s revenue for the quarter was up 8.4% on a year-over-year basis. As a group, equities research analysts expect that Transocean Ltd. will post 0.14 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Keelan Adamson sold 57,968 shares of Transocean stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $4.50, for a total transaction of $260,856.00. Following the completion of the transaction, the chief executive officer directly owned 1,303,715 shares in the company, valued at $5,866,717.50. This trade represents a 4.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Jeremy D. Thigpen sold 500,000 shares of the business’s stock in a transaction dated Wednesday, November 26th. The stock was sold at an average price of $4.32, for a total transaction of $2,160,000.00. Following the sale, the insider directly owned 2,136,223 shares of the company’s stock, valued at approximately $9,228,483.36. The trade was a 18.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have acquired 11,000,000 shares of company stock worth $36,460,000 and have sold 726,148 shares worth $3,115,783. 12.54% of the stock is owned by company insiders.

Hedge Funds Weigh In On Transocean

A number of hedge funds have recently added to or reduced their stakes in the stock. Josh Arnold Investment Consultant LLC purchased a new stake in shares of Transocean in the second quarter worth approximately $26,000. Blume Capital Management Inc. grew its holdings in Transocean by 125.9% during the second quarter. Blume Capital Management Inc. now owns 10,560 shares of the offshore drilling services provider’s stock worth $27,000 after buying an additional 5,885 shares in the last quarter. Blueshift Asset Management LLC purchased a new stake in Transocean in the 2nd quarter valued at $27,000. Verum Partners LLC bought a new position in Transocean during the 2nd quarter valued at $28,000. Finally, Stockman Wealth Management Inc. purchased a new position in Transocean during the 2nd quarter worth $28,000. Institutional investors and hedge funds own 67.73% of the company’s stock.

Transocean Company Profile

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. The company operates a fleet of mobile offshore drilling units, consisting of ultra-deepwater floaters and harsh environment floaters.