Transocean (NYSE:RIG) Trading Down 5.5% – Here’s What Happened

Transocean Ltd. (NYSE:RIG)’s share price dropped 5.5% on Wednesday . The stock traded as low as $5.65 and last traded at $5.6150. 6,199,396 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 40,433,703 shares. The stock had previously closed at $5.94.

Wall Street Analysts Forecast Growth

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

Transocean Trading Up 2.3%

The business’s 50-day simple moving average is $5.54 and its two-hundred day simple moving average is $5.95. The firm has a market capitalization of $6.33 billion, a price-to-earnings ratio of -3.01, a PEG ratio of 4.10 and a beta of 1.34. The company has a quick ratio of 1.27, a current ratio of 1.59 and a debt-to-equity ratio of 0.56.

Transocean (NYSE:RIG) last issued its quarterly earnings data on Wednesday, August 5th. The offshore drilling services provider reported $0.03 EPS for the quarter, topping the consensus estimate 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 firm had revenue of $966.00 million for the quarter, compared to analyst estimates of $956.64 million. During the same period in the prior year, the business posted ($1.06) EPS. The business’s revenue for the quarter was down 2.2% compared to the same quarter last year. Equities analysts forecast that Transocean Ltd. will post 0.18 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Chad Deaton purchased 35,000 shares of the stock in a transaction dated Thursday, July 2nd. The stock was acquired at an average cost of $4.95 per share, for a total transaction of $173,250.00. Following the completion of the transaction, the director directly owned 237,421 shares in the company, valued at approximately $1,175,233.95. This represents a 17.29% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. 9.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Transocean

Several institutional investors and hedge funds have recently modified their holdings of RIG. Dimensional Fund Advisors LP increased its position in shares of Transocean by 12.3% during the first quarter. Dimensional Fund Advisors LP now owns 48,819,576 shares of the offshore drilling services provider’s stock worth $323,682,000 after acquiring an additional 5,349,264 shares during the period. Dalal Street LLC boosted its holdings in Transocean by 10.6% in the fourth quarter. Dalal Street LLC now owns 27,040,133 shares of the offshore drilling services provider’s stock valued at $111,676,000 after purchasing an additional 2,597,801 shares during the period. Geode Capital Management LLC boosted its holdings in Transocean by 7.1% in the fourth quarter. Geode Capital Management LLC now owns 22,797,180 shares of the offshore drilling services provider’s stock valued at $94,168,000 after purchasing an additional 1,515,893 shares during the period. Elliott Investment Management L.P. acquired a new position in Transocean during the 1st quarter worth $103,606,000. Finally, Keybank National Association OH grew its stake in Transocean by 3.3% during the 1st quarter. Keybank National Association OH now owns 12,656,881 shares of the offshore drilling services provider’s stock worth $83,915,000 after purchasing an additional 405,804 shares in the last quarter. Hedge funds and other institutional investors own 67.73% of the company’s stock.

About Transocean

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.