Transocean (NYSE:RIG) Trading 4.5% Higher – Time to Buy?

Transocean Ltd. (NYSE:RIG) shares traded up 4.5% during trading on Tuesday . The company traded as high as $5.68 and last traded at $5.6950. Approximately 4,630,412 shares traded hands during trading, a decline of 88% from the average session volume of 40,259,152 shares. The stock had previously closed at $5.45.

Key Transocean News

Here are the key news stories impacting Transocean this week:

• Positive Sentiment: $80 million contract expands backlog: Transocean’s Deepwater Conqueror won a two-well contract in Equatorial Guinea. The approximately 170-day campaign is expected to begin in 2027 immediately after the rig’s current Gulf of Mexico assignment, improving future utilization and revenue visibility. The award is expected to add about $80 million to backlog, excluding additional services and mobilization-related compensation. Transocean Ltd. Announces $80 Million Contract For Ultra-Deepwater Drillship
• Positive Sentiment: Improving offshore-drilling sentiment: Rising oil prices and renewed activity across offshore drilling stocks have supported the sector. Transocean shares have recently outperformed as investors respond to contract wins and stronger demand for ultra-deepwater rigs. Unusually heavy call-option buying also signals increased speculative bullish interest, although it does not guarantee sustained buying.
• Neutral Sentiment: Valuation remains a focus: Analysts and investors are assessing whether Transocean’s multiyear share-price gains are supported by the cash flow the company can generate. The new contract strengthens the outlook, but the company remains loss-making on a reported basis, making execution, day rates and cash flow important to the stock’s next move. Transocean Stock Stays Near Fair Value With Cash Flow In Focus

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on RIG shares. Susquehanna lowered their target price on Transocean from $8.00 to $7.00 and set a “positive” rating for the company in a research note on Wednesday, July 8th. Barclays reduced their price target on Transocean from $8.00 to $7.00 and set an “overweight” rating on the stock in a research report on Wednesday, August 12th. Fearnley Fonds upgraded Transocean from a “hold” rating to a “strong-buy” rating in a report on Friday, August 7th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Transocean in a research report on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $6.68.

Transocean Price Performance

The company has a current ratio of 1.59, a quick ratio of 1.27 and a debt-to-equity ratio of 0.56. The stock has a market cap of $6.19 billion, a PE ratio of -2.95, a P/E/G ratio of 4.39 and a beta of 1.34. The company’s 50 day moving average is $5.53 and its 200-day moving average is $5.96.

Transocean (NYSE:RIG) last posted its quarterly earnings data on Wednesday, August 5th. The offshore drilling services provider reported $0.03 earnings per share for the quarter, beating analysts’ consensus estimates of $0.01 by $0.02. Transocean had a negative net margin of 40.24% and a positive return on equity of 2.60%. The company had revenue of $966.00 million during the quarter, compared to analysts’ expectations of $956.64 million. During the same period in the prior year, the company posted ($1.06) EPS. The firm’s revenue for the quarter was down 2.2% on a year-over-year basis. As a group, sell-side analysts predict that Transocean Ltd. will post 0.18 earnings per share for the current year.

Insider Buying and Selling

In other Transocean news, Director Chad Deaton acquired 35,000 shares of the stock in a transaction on Thursday, July 2nd. The stock was purchased at an average price of $4.95 per share, for a total transaction of $173,250.00. Following the purchase, the director directly owned 237,421 shares in the company, valued at $1,175,233.95. This trade represents a 17.29% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 9.70% of the company’s stock.

Hedge Funds Weigh In On Transocean

Several institutional investors and hedge funds have recently made changes to their positions in RIG. Keudell Morrison Wealth Management bought a new stake in shares of Transocean in the fourth quarter worth $41,000. Tradition Wealth Management LLC bought a new position in Transocean during the 4th quarter valued at $41,000. Evoke Wealth LLC bought a new position in Transocean during the 4th quarter valued at $42,000. Ascentis Independent Advisors acquired a new position in Transocean during the 1st quarter worth $43,000. Finally, EverSource Wealth Advisors LLC grew its holdings in Transocean by 27.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 6,536 shares of the offshore drilling services provider’s stock worth $43,000 after acquiring an additional 1,391 shares in the last quarter. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

Transocean Company Profile

Transocean Ltd. (NYSE:RIG) is an international offshore contract drilling company that provides drilling services to oil and gas companies. Its primary business is operating mobile offshore drilling units under contracts that support exploration, development and production activities in offshore oil and natural gas fields.

The company’s fleet is focused primarily on ultra-deepwater and harsh-environment drilling units, including drillships and semisubmersible rigs. Transocean provides rig operations, drilling personnel, equipment and related services intended to help customers safely construct and complete offshore wells.

Transocean serves energy companies in major offshore drilling regions around the world.