Transocean (NYSE:RIG) Downgraded by Fearnley Fonds to Hold

Fearnley Fonds cut shares of Transocean (NYSE:RIG) from a strong-buy rating to a hold rating in a report published on Tuesday,Zacks.com reports.

A number of other research analysts have also recently commented on the stock. Barclays increased their target price on shares of Transocean from $4.00 to $4.50 and gave the stock an “overweight” rating in a report on Wednesday, November 5th. Susquehanna increased their price objective on shares of Transocean from $4.50 to $5.00 and gave the company a “positive” rating in a research note on Wednesday, January 7th. BTIG Research boosted their target price on shares of Transocean from $6.00 to $10.00 and gave the stock a “buy” rating in a research note on Monday. Citigroup increased their price target on Transocean from $4.25 to $4.50 and gave the company a “neutral” rating in a research note on Thursday, December 11th. Finally, JPMorgan Chase & Co. restated an “underweight” rating on shares of Transocean in a research report on Wednesday, December 10th. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $5.22.

Transocean Price Performance

Shares of NYSE:RIG traded up $0.47 during trading on Tuesday, reaching $5.91. 52,389,931 shares of the company traded hands, compared to its average volume of 44,676,637. 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 has a 52 week low of $1.97 and a 52 week high of $5.91. The firm has a market capitalization of $6.50 billion, a PE ratio of -1.80 and a beta of 1.46. The company’s 50 day moving average is $4.45 and its two-hundred day moving average is $3.79.

Insider Buying and Selling at Transocean

In related news, EVP Roderick James Mackenzie sold 35,000 shares of the business’s stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $4.48, for a total value of $156,800.00. Following the transaction, the executive vice president owned 212,072 shares in the company, valued at $950,082.56. The trade was a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Perestroika purchased 1,500,000 shares of the firm’s stock in a transaction on Monday, November 24th. The shares were acquired at an average price of $4.02 per share, with a total value of $6,030,000.00. Following the completion of the acquisition, the director owned 96,574,894 shares in the company, valued at approximately $388,231,073.88. This trade represents a 1.58% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold 712,970 shares of company stock valued at $3,152,132 over the last three months. 12.27% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Transocean

Hedge funds have recently added to or reduced their stakes in the business. TD Waterhouse Canada Inc. raised its holdings in shares of Transocean by 22,432.1% in the 4th quarter. TD Waterhouse Canada Inc. now owns 6,309 shares of the offshore drilling services provider’s stock worth $26,000 after acquiring an additional 6,281 shares during the last quarter. Josh Arnold Investment Consultant LLC bought a new stake in Transocean during the 2nd quarter worth approximately $26,000. Blume Capital Management Inc. raised its stake in shares of Transocean by 125.9% in the second quarter. Blume Capital Management Inc. now owns 10,560 shares of the offshore drilling services provider’s stock worth $27,000 after purchasing an additional 5,885 shares during the last quarter. Blueshift Asset Management LLC bought a new position in shares of Transocean in the second quarter valued at approximately $27,000. Finally, Flagship Harbor Advisors LLC bought a new stake in Transocean during the fourth quarter worth $27,000. 67.73% of the stock is currently owned by institutional investors.

Key Transocean News

Here are the key news stories impacting Transocean this week:

• Positive Sentiment: Transocean agreed to acquire Valaris in an all‑stock transaction (~$5.8B), creating a much larger combined fleet, a multi‑billion dollar backlog and identified cost synergies — a consolidating deal that explains much of the bullish move. Transocean To Buy Valaris
• Positive Sentiment: BTIG raised its price target to $10 and issued a buy, giving investors a sizeable upside case and likely supporting bullish flow and sentiment. BTIG Raises Price Target
• Positive Sentiment: Transocean announced ~$184M of firm contract backlog for two harsh‑environment semisubmersibles in Norway (Encourage and Enabler), adding visible, multi‑year revenue and helping justify higher valuation. Contract Award and Extension
• Positive Sentiment: Unusually large call‑option activity (≈69,880 calls, ~85% above normal) suggests speculative and/or institutional bullish positioning ahead of M&A integration and backlog realization.
• Neutral Sentiment: An M&A call transcript and additional coverage provide more color on the transaction and integration plan; useful context but not new catalysts by itself. M&A Call Transcript
• Negative Sentiment: Fearnley Fonds downgraded RIG from “strong‑buy” to “hold,” signaling at least one analyst’s caution on near‑term upside or deal execution risk. Analyst Downgrade
• Negative Sentiment: A shareholder‑class‑action investigation was announced, introducing legal/PR risk related to the M&A process and disclosures. Class Action Investigation
• Negative Sentiment: Notable insider sales and mixed institutional moves are visible in recent filings, a reminder to monitor governance and dilution/ownership changes as the transaction closes. Insider and Institutional Activity

Transocean Company Profile

Transocean Ltd. is a leading international provider of offshore contract drilling services for the oil and gas industry. The company specializes in the operation of mobile drilling units, including ultra-deepwater drillships, semisubmersible rigs and high-specification jackup rigs. Transocean’s fleet is designed to meet complex drilling requirements, from ultra-deepwater well construction to shelf exploration and development projects.

The company’s core services encompass the full spectrum of offshore drilling operations, including project and engineering management, marine operations, drilling supervision, and maintenance support.