Transocean (NYSE:RIG) Shares Gap Down Following Analyst Downgrade

Shares of Transocean Ltd. (NYSE:RIG) gapped down prior to trading on Monday after Susquehanna lowered their price target on the stock from $8.00 to $7.00. The stock had previously closed at $4.30, but opened at $4.19. Susquehanna currently has a positive rating on the stock. Transocean shares last traded at $4.18, with a volume of 2,042,453 shares trading hands.

RIG has been the subject of a number of other research reports. StockNews.com upgraded Transocean to a “sell” rating in a report on Thursday. Citigroup downgraded Transocean from a “buy” rating to a “neutral” rating in a report on Thursday, September 12th. DNB Markets upgraded Transocean from a “hold” rating to a “buy” rating in a report on Tuesday, September 3rd. Benchmark restated a “buy” rating and set a $8.00 target price on shares of Transocean in a report on Friday, August 2nd. Finally, Morgan Stanley upped their target price on Transocean from $5.00 to $6.00 and gave the company an “equal weight” rating in a report on Thursday, October 3rd. Two analysts have rated the stock with a sell rating, four have issued a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, Transocean presently has an average rating of “Hold” and a consensus price target of $6.88.

Insider Buying and Selling

In related news, Director (Cyprus) Ltd Perestroika bought 2,000,000 shares of the business’s stock in a transaction dated Friday, August 2nd. The shares were purchased at an average cost of $5.23 per share, with a total value of $10,460,000.00. Following the completion of the purchase, the director now owns 89,574,894 shares in the company, valued at approximately $468,476,695.62. The trade was a 0.00 % increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, Director (Cyprus) Ltd Perestroika bought 2,000,000 shares of the company’s stock in a transaction on Friday, August 2nd. The shares were acquired at an average cost of $5.23 per share, with a total value of $10,460,000.00. Following the completion of the transaction, the director now owns 89,574,894 shares of the company’s stock, valued at approximately $468,476,695.62. This trade represents a 0.00 % increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Perestroika bought 1,500,000 shares of the company’s stock in a transaction on Thursday, September 12th. The stock was purchased at an average cost of $4.13 per share, for a total transaction of $6,195,000.00. Following the completion of the transaction, the director now directly owns 91,074,894 shares of the company’s stock, valued at approximately $376,139,312.22. The trade was a 0.00 % increase in their position. The disclosure for this purchase can be found here. 13.16% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. raised its stake in Transocean by 138.8% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,633 shares of the offshore drilling services provider’s stock valued at $25,000 after purchasing an additional 2,693 shares during the period. Nisa Investment Advisors LLC bought a new stake in Transocean during the 2nd quarter valued at approximately $30,000. Fiducient Advisors LLC bought a new stake in Transocean during the 1st quarter valued at approximately $63,000. SG Americas Securities LLC bought a new stake in Transocean in the 2nd quarter worth approximately $64,000. Finally, Fermata Advisors LLC bought a new stake in Transocean in the 1st quarter worth approximately $75,000. 67.73% of the stock is owned by hedge funds and other institutional investors.

Transocean Stock Performance

The company has a quick ratio of 1.08, a current ratio of 1.36 and a debt-to-equity ratio of 0.63. The stock has a 50 day simple moving average of $4.62 and a 200-day simple moving average of $5.30.

Transocean (NYSE:RIG) last released its quarterly earnings data on Wednesday, July 31st. The offshore drilling services provider reported ($0.15) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.07). The firm had revenue of $861.00 million during the quarter, compared to the consensus estimate of $862.25 million. Transocean had a negative return on equity of 4.76% and a negative net margin of 11.34%. The business’s revenue was up 18.1% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.15) EPS. On average, equities analysts expect that Transocean Ltd. will post -0.18 earnings per share for the current fiscal year.

About Transocean

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.