Transocean (NYSE:RIG) Trading Down 7.1% – Here’s Why

Shares of Transocean Ltd. (NYSE:RIG) dropped 7.1% on Thursday . The company traded as low as $5.19 and last traded at $5.1850. Approximately 5,666,968 shares were traded during trading, a decline of 86% from the average daily volume of 39,602,875 shares. The stock had previously closed at $5.58.

Analyst Upgrades and Downgrades

RIG has been the subject of a number of recent analyst reports. TD Cowen lifted their target price on Transocean from $5.50 to $6.00 and gave the company a “hold” rating in a report on Wednesday, May 6th. Susquehanna lifted their target price on Transocean from $7.50 to $8.00 and gave the company a “positive” rating in a report on Tuesday, April 7th. Barclays upgraded Transocean from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $6.00 to $8.00 in a research report on Thursday, May 7th. Morgan Stanley lifted their price target on Transocean from $5.00 to $7.00 and gave the company an “equal weight” rating in a research report on Wednesday, April 15th. Finally, Clarkson Capital downgraded Transocean from a “strong-buy” rating to a “hold” rating in a research report on Thursday, March 19th. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $6.96.

Transocean Trading Down 6.0%

The stock has a market cap of $5.86 billion, a P/E ratio of -1.76 and a beta of 1.28. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.20 and a current ratio of 1.54. The stock has a 50-day moving average price of $6.39 and a 200-day moving average price of $5.66.

Transocean (NYSE:RIG) last issued its quarterly earnings results on Monday, May 4th. The offshore drilling services provider reported ($0.03) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.10). The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.02 billion. Transocean had a negative net margin of 66.79% and a positive return on equity of 0.88%. The business’s revenue was up 19.3% compared to the same quarter last year. During the same quarter last year, the business posted ($0.10) EPS. On average, equities research analysts expect that Transocean Ltd. will post 0.17 EPS for the current year.

Institutional Trading of Transocean

A number of hedge funds have recently bought and sold shares of the company. NewEdge Advisors LLC lifted its position in Transocean by 64.9% in the 1st quarter. NewEdge Advisors LLC now owns 276,083 shares of the offshore drilling services provider’s stock worth $1,830,000 after buying an additional 108,631 shares during the last quarter. Kentucky Retirement Systems bought a new stake in Transocean in the 1st quarter worth approximately $186,000. Janus Henderson Group PLC lifted its position in Transocean by 5.3% in the 1st quarter. Janus Henderson Group PLC now owns 444,630 shares of the offshore drilling services provider’s stock worth $2,948,000 after buying an additional 22,453 shares during the last quarter. Amundi lifted its position in Transocean by 406.1% in the 1st quarter. Amundi now owns 140,359 shares of the offshore drilling services provider’s stock worth $931,000 after buying an additional 112,628 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in Transocean by 27.0% in the 1st quarter. EverSource Wealth Advisors LLC now owns 6,536 shares of the offshore drilling services provider’s stock worth $43,000 after buying an additional 1,391 shares during the last quarter. Institutional investors own 67.73% of the company’s stock.

About Transocean

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.