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

Transocean Ltd. (NYSE:RIG)’s share price fell 7.1% during mid-day trading on Thursday . The stock traded as low as $5.19 and last traded at $5.1850. 5,666,968 shares were traded during trading, a decline of 86% from the average session volume of 39,602,875 shares. The stock had previously closed at $5.58.

Analysts Set New Price Targets

Several brokerages have recently issued reports on RIG. Clarkson Capital lowered Transocean from a “strong-buy” rating to a “hold” rating in a research report on Thursday, March 19th. Barclays raised Transocean from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $6.00 to $8.00 in a research report on Thursday, May 7th. Morgan Stanley raised their target price on Transocean from $5.00 to $7.00 and gave the company an “equal weight” rating in a research report on Wednesday, April 15th. TD Cowen raised their target price on Transocean from $5.50 to $6.00 and gave the company a “hold” rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Transocean in a report on Tuesday, April 21st. Three research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Transocean currently has a consensus rating of “Hold” and a consensus price target of $6.96.

Transocean Trading Down 6.0%

The firm has a fifty day moving average of $6.39 and a two-hundred day moving average of $5.66. The company has a market cap of $5.86 billion, a PE ratio of -1.76 and a beta of 1.28. The company has a current ratio of 1.54, a quick ratio of 1.20 and a debt-to-equity ratio of 0.60.

Transocean (NYSE:RIG) last announced its quarterly earnings data on Monday, May 4th. The offshore drilling services provider reported ($0.03) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.10). Transocean had a positive return on equity of 0.88% and a negative net margin of 66.79%.The firm had revenue of $1.08 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same period last year, the business posted ($0.10) EPS. The company’s revenue was up 19.3% compared to the same quarter last year. As a group, sell-side analysts predict that Transocean Ltd. will post 0.17 EPS for the current year.

Institutional Investors Weigh In On Transocean

Several large investors have recently added to or reduced their stakes in RIG. Vanguard Group Inc. grew its holdings in Transocean by 2.6% during the 4th quarter. Vanguard Group Inc. now owns 97,006,263 shares of the offshore drilling services provider’s stock valued at $400,636,000 after buying an additional 2,487,015 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in Transocean by 12.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 48,819,576 shares of the offshore drilling services provider’s stock valued at $323,682,000 after buying an additional 5,349,264 shares in the last quarter. Dalal Street LLC grew its holdings in Transocean by 10.6% during the 4th quarter. Dalal Street LLC now owns 27,040,133 shares of the offshore drilling services provider’s stock valued at $111,676,000 after buying an additional 2,597,801 shares in the last quarter. American Century Companies Inc. grew its holdings in Transocean by 12.8% during the 3rd quarter. American Century Companies Inc. now owns 26,456,554 shares of the offshore drilling services provider’s stock valued at $82,544,000 after buying an additional 3,006,786 shares in the last quarter. Finally, Morgan Stanley grew its holdings in Transocean by 9.4% during the 4th quarter. Morgan Stanley now owns 24,790,325 shares of the offshore drilling services provider’s stock valued at $102,384,000 after buying an additional 2,135,964 shares in the last quarter. Hedge funds and other 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.