Transocean (NYSE:RIG) Shares Up 4.5% – Should You Buy?

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

Analyst Upgrades and Downgrades

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

Transocean Stock Performance

The stock has a market capitalization of $6.58 billion, a PE ratio of -3.14, a P/E/G ratio of 4.19 and a beta of 1.34. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.59 and a quick ratio of 1.27. The business’s fifty day moving average price is $5.51 and its 200-day moving average price is $5.97.

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, beating the consensus estimate of $0.01 by $0.02. The company had revenue of $966.00 million during the quarter, compared to analysts’ expectations of $956.64 million. Transocean had a negative net margin of 40.24% and a positive return on equity of 2.60%. Transocean’s revenue for the quarter was down 2.2% on a year-over-year basis. During the same quarter in the previous year, the company earned ($1.06) earnings per share. As a group, equities research analysts expect that Transocean Ltd. will post 0.18 EPS for the current year.

Insider Buying and Selling

In other news, Director Chad Deaton purchased 35,000 shares of the business’s stock in a transaction on Thursday, July 2nd. The stock was purchased at an average cost of $4.95 per share, with a total value of $173,250.00. Following the acquisition, the director directly owned 237,421 shares in the company, valued at approximately $1,175,233.95. This trade represents a 17.29% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 9.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP boosted its stake in 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 valued at $323,682,000 after buying an additional 5,349,264 shares during the period. Dalal Street LLC increased its stake in Transocean by 10.6% in the 4th quarter. Dalal Street LLC now owns 27,040,133 shares of the offshore drilling services provider’s stock worth $111,676,000 after acquiring an additional 2,597,801 shares during the last quarter. Geode Capital Management LLC increased its stake in Transocean by 7.1% in the 4th quarter. Geode Capital Management LLC now owns 22,797,180 shares of the offshore drilling services provider’s stock worth $94,168,000 after acquiring an additional 1,515,893 shares during the last quarter. Elliott Investment Management L.P. purchased a new stake in shares of Transocean in the 1st quarter valued at about $103,606,000. Finally, Keybank National Association OH raised its holdings in shares of Transocean by 3.3% in the 1st quarter. Keybank National Association OH now owns 12,656,881 shares of the offshore drilling services provider’s stock valued at $83,915,000 after acquiring an additional 405,804 shares in the last quarter. 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.