Zacks Investment Research cut shares of Transocean Ltd. (NYSE:RIG) from a buy rating to a hold rating in a report published on Tuesday, October 17th.
According to Zacks, “Transocean displays excellent track record of earnings surprise history, beating estimates in the last 16 quarters. We like Transocean's technologically advanced and versatile drilling fleet, strong backlog, healthy financials and considerable pricing power. With the market for offshore rigs unlikely to turn around anytime soon, the company has been selling/stacking older rigs as well as investing in high-specification rigs in order to improve the quality of its fleet. The recent acquisition of Songa Offshore by RIG bodes well for the company as it is expected to strengthen Transocean’s portfolio and boost its backlog. Nevertheless, we expect RIG shares to remain soft until oil prices rebound sufficiently, as deepwater/ultra-deepwater drilling – with its associated risks and steep costs – require a far higher oil price than what is prevailing currently. Thus we take a cautious stance on the prospects of the stock.”
A number of other equities research analysts have also issued reports on the stock. BidaskClub lowered shares of Transocean from a sell rating to a strong sell rating in a research note on Friday, June 23rd. Jefferies Group LLC set a $12.00 price objective on shares of Transocean and gave the stock a hold rating in a report on Saturday, July 1st. Sanford C. Bernstein downgraded shares of Transocean from an outperform rating to a market perform rating and dropped their price objective for the stock from $16.50 to $9.00 in a report on Thursday, July 6th. Credit Suisse Group reiterated a buy rating on shares of Transocean in a research report on Wednesday, July 19th. Finally, Wells Fargo & Company reiterated a market perform rating on shares of Transocean in a research report on Saturday, July 22nd. Ten equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and sixteen have issued a buy rating to the stock. The company has a consensus rating of Hold and an average price target of $12.25.
Transocean (RIG) traded up $0.36 on Tuesday, reaching $11.25. 15,559,826 shares of the company traded hands, compared to its average volume of 15,090,000. Transocean has a 52-week low of $7.20 and a 52-week high of $16.66. The firm has a market capitalization of $4,400.00, a price-to-earnings ratio of 13.60 and a beta of 1.81. The company has a current ratio of 2.36, a quick ratio of 2.13 and a debt-to-equity ratio of 0.51.
Transocean (NYSE:RIG) last issued its earnings results on Wednesday, November 1st. The offshore drilling services provider reported $0.16 earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.04) by $0.20. Transocean had a negative net margin of 84.09% and a positive return on equity of 2.10%. The firm had revenue of $808.00 million during the quarter, compared to analysts’ expectations of $703.13 million. During the same period last year, the firm posted $0.25 earnings per share. The firm’s revenue for the quarter was down 10.8% compared to the same quarter last year. equities analysts anticipate that Transocean will post -0.29 EPS for the current year.
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In other Transocean news, CAO Howard E. Davis acquired 40,000 shares of the company’s stock in a transaction that occurred on Thursday, August 17th. The stock was bought at an average price of $7.32 per share, for a total transaction of $292,800.00. Following the acquisition, the chief accounting officer now directly owns 21,793 shares in the company, valued at $159,524.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.33% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently bought and sold shares of RIG. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in shares of Transocean by 0.6% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 29,052 shares of the offshore drilling services provider’s stock worth $239,000 after buying an additional 175 shares during the period. Raymond James Financial Services Advisors Inc. lifted its holdings in shares of Transocean by 0.5% in the 2nd quarter. Raymond James Financial Services Advisors Inc. now owns 49,298 shares of the offshore drilling services provider’s stock worth $406,000 after buying an additional 226 shares during the period. Thrivent Financial For Lutherans lifted its holdings in shares of Transocean by 2.4% in the 2nd quarter. Thrivent Financial For Lutherans now owns 14,840 shares of the offshore drilling services provider’s stock worth $122,000 after buying an additional 350 shares during the period. Louisiana State Employees Retirement System lifted its holdings in shares of Transocean by 1.7% in the 2nd quarter. Louisiana State Employees Retirement System now owns 24,300 shares of the offshore drilling services provider’s stock worth $200,000 after buying an additional 400 shares during the period. Finally, Stifel Financial Corp lifted its holdings in shares of Transocean by 0.5% in the 2nd quarter. Stifel Financial Corp now owns 81,518 shares of the offshore drilling services provider’s stock worth $664,000 after buying an additional 410 shares during the period. Institutional investors own 68.88% of the company’s stock.
Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. The Company’s primary business is to contract its drilling rigs, related equipment and work crews on a dayrate basis to drill oil and gas wells. As of February 9, 2017, it owned or had partial ownership interests in and operated 56 mobile offshore drilling units.
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