Stock Traders Purchase High Volume of Transocean Call Options (NYSE:RIG)

Transocean Ltd. (NYSE:RIG) was the recipient of unusually large options trading on Wednesday. Traders acquired 69,880 call options on the stock. This represents an increase of approximately 85% compared to the typical volume of 37,748 call options.

Insider Activity

In other Transocean news, EVP Roderick James Mackenzie sold 35,000 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $4.48, for a total transaction of $156,800.00. Following the transaction, the executive vice president owned 212,072 shares in the company, valued at approximately $950,082.56. This represents a 14.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Frederik Wilhelm Mohn purchased 1,500,000 shares of Transocean stock in a transaction dated Monday, November 24th. The stock was bought at an average price of $4.02 per share, with a total value of $6,030,000.00. Following the completion of the purchase, the director directly owned 96,574,894 shares of the company’s stock, valued at approximately $388,231,073.88. This trade represents a 1.58% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders sold 712,970 shares of company stock valued at $3,152,132. Corporate insiders own 12.27% of the company’s stock.

Institutional Trading of Transocean

Hedge funds and other institutional investors have recently made changes to their positions in the business. TD Waterhouse Canada Inc. grew its stake in Transocean by 22,432.1% during the 4th quarter. TD Waterhouse Canada Inc. now owns 6,309 shares of the offshore drilling services provider’s stock worth $26,000 after buying an additional 6,281 shares during the last quarter. Josh Arnold Investment Consultant LLC acquired a new position in shares of Transocean during the second quarter valued at about $26,000. Blume Capital Management Inc. raised its position in shares of Transocean by 125.9% in the 2nd quarter. Blume Capital Management Inc. now owns 10,560 shares of the offshore drilling services provider’s stock valued at $27,000 after purchasing an additional 5,885 shares during the last quarter. Blueshift Asset Management LLC purchased a new position in shares of Transocean in the second quarter worth about $27,000. Finally, Flagship Harbor Advisors LLC acquired a new stake in shares of Transocean in the fourth quarter valued at about $27,000. Hedge funds and other institutional investors own 67.73% of the company’s stock.

Key Stories Impacting Transocean

Here are the key news stories impacting Transocean this week:

• Positive Sentiment: Transformational acquisition announced — Transocean agreed to acquire Valaris in an all‑stock deal valued at about $5.8B, creating a much larger combined fleet, a multi‑billion backlog and management‑projected cost synergies that could materially improve cash flow and leverage metrics. This deal is the primary driver of the recent jump in investor enthusiasm. Offshore Titans: Transocean Buys Valaris for $5.8B
• Positive Sentiment: Backlog boost from Norway contracts — Transocean announced contract fixtures for two harsh‑environment semisubmersibles totaling roughly $184M in firm backlog (notably a seven‑well extension for Transocean Encourage and options for Transocean Enabler), extending revenue visibility into 2027. This supports near‑to‑midterm cash flow projections. Press Release
• Positive Sentiment: Heavy bullish options activity — Unusual call buying was reported (≈69,880 calls, ~85% above normal call volume), indicating speculative or hedged bullish positioning by traders ahead of deal/earnings developments. This often amplifies short‑term upside moves in the equity.
• Positive Sentiment: Analyst upside — BTIG raised its price target to $10, signaling some analysts view material upside if the Valaris deal and synergy plan execute. That upgrade helped attract additional buy interest. BTIG Research Raises Price Target
• Neutral Sentiment: M&A call transcript available — A recent M&A call transcript (management commentary) has been posted; investors should read for detail on transaction rationale, integration timeline and financing assumptions to refine expectations. M&A Call Transcript
• Neutral Sentiment: Market attention and volume — Coverage and analyst notes have driven unusually high trading volumes; this can increase short‑term volatility as the market re‑prices the deal and backlog news. High Trading Volume on Analyst Upgrade
• Negative Sentiment: Some sell‑side caution — Fearnley Fonds downgraded RIG from “strong‑buy” to “hold,” which could temper near‑term buy pressure from certain institutional holders. Zacks report
• Negative Sentiment: Legal/ regulatory overhang — A class‑action investigation into Transocean was announced and third parties are probing the Valaris sale process, creating potential legal/transactional risk that could delay closing or add costs. These investigations are a material overhang until resolved. Class Action Notice Valaris Sale Probe

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on RIG shares. Fearnley Fonds cut shares of Transocean from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Barclays raised their target price on Transocean from $4.00 to $4.50 and gave the stock an “overweight” rating in a report on Wednesday, November 5th. JPMorgan Chase & Co. restated an “underweight” rating on shares of Transocean in a research report on Wednesday, December 10th. Citigroup raised their price objective on Transocean from $4.25 to $4.50 and gave the stock a “neutral” rating in a research note on Thursday, December 11th. Finally, Susquehanna boosted their price objective on Transocean from $4.50 to $5.00 and gave the company a “positive” rating in a research note on Wednesday, January 7th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $5.22.

Transocean Price Performance

Transocean stock traded up $0.46 during mid-day trading on Wednesday, reaching $5.90. 71,528,478 shares of the company’s stock traded hands, compared to its average volume of 45,424,438. Transocean has a 12-month low of $1.97 and a 12-month high of $5.93. The company has a market cap of $6.49 billion, a price-to-earnings ratio of -1.79 and a beta of 1.46. The company has a quick ratio of 0.91, a current ratio of 1.08 and a debt-to-equity ratio of 0.60. The stock has a 50 day moving average of $4.45 and a two-hundred day moving average of $3.79.

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.