Transocean (NYSE:RIG) Reaches New 12-Month High After Analyst Upgrade

Shares of Transocean Ltd. (NYSE:RIG) hit a new 52-week high during trading on Tuesday after BTIG Research raised their price target on the stock from $6.00 to $10.00. BTIG Research currently has a buy rating on the stock. Transocean traded as high as $5.77 and last traded at $5.70, with a volume of 183174729 shares trading hands. The stock had previously closed at $5.39.

Other research analysts have also recently issued research reports about the stock. Morgan Stanley set a $4.50 price target on shares of Transocean in a report on Monday, December 15th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Transocean in a research note on Thursday, January 22nd. Citigroup lifted their price target on Transocean from $4.25 to $4.50 and gave the company a “neutral” rating in a research note on Thursday, December 11th. JPMorgan Chase & Co. restated an “underweight” rating on shares of Transocean in a report on Wednesday, December 10th. Finally, Barclays increased their price objective on Transocean from $4.00 to $4.50 and gave the stock an “overweight” rating in a report on Wednesday, November 5th. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $5.22.

Insider Transactions at Transocean

In other news, EVP Roderick James Mackenzie sold 35,000 shares of Transocean stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $4.48, for a total transaction of $156,800.00. Following the completion of the transaction, the executive vice president directly owned 212,072 shares in the company, valued at approximately $950,082.56. The trade was a 14.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Jeremy D. Thigpen sold 500,000 shares of the stock in a transaction on Wednesday, November 26th. The shares were sold at an average price of $4.32, for a total value of $2,160,000.00. Following the completion of the sale, the insider owned 2,136,223 shares in the company, valued at approximately $9,228,483.36. This trade represents a 18.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 712,970 shares of company stock valued at $3,152,132. Company insiders own 12.27% of the company’s stock.

Transocean News Roundup

Here are the key news stories impacting Transocean this week:

• Positive Sentiment: Transformative acquisition announced — Transocean agreed to buy Valaris in an all?stock transaction (~$5.8B), creating a much larger offshore drilling leader with scale, an expanded fleet and meaningful backlog and cost?saving opportunities that improve cash?flow visibility and leverage metrics. Article Title
• Positive Sentiment: New firm backlog: ~$184M in Norway contract fixtures for two harsh?environment semisubmersibles (Encourage extension + Enabler options) — adds near?term revenue visibility and extends rig utilization into 2027. Article Title
• Positive Sentiment: Bullish derivatives flow — unusually large call buying (?69,880 calls, ~+85% vs. average) suggests speculative or hedged bullish positioning that can amplify intraday upside and trading volume.
• Positive Sentiment: Analyst upward momentum — BTIG raised its price target to $10, supporting higher expectations for upside from the deal and operations. Article Title
• Neutral Sentiment: M&A investor materials and call transcript available — management has held calls/transcripts explaining rationale and synergies; useful for investors doing due diligence but not an immediate catalyst by itself. Article Title
• Neutral Sentiment: Earnings/operational outlook — previews (Zacks) expect revenue growth but higher operating & maintenance costs; watch Q4 results and guidance for confirmation. Article Title
• Negative Sentiment: Analyst downgrade — Fearnley Fonds cut RIG from “strong?buy” to “hold,” which may temper some buy?side enthusiasm and limit near?term upside. Article Title
• Negative Sentiment: Legal/transaction scrutiny — a class?action investigation and third?party reviews of the Valaris deal process have been announced, introducing regulatory/legal risk and potential distraction or costs. Article Title Article Title

Hedge Funds Weigh In On Transocean

Several institutional investors and hedge funds have recently made changes to their positions in the company. TD Waterhouse Canada Inc. lifted its holdings in Transocean by 22,432.1% during the 4th quarter. TD Waterhouse Canada Inc. now owns 6,309 shares of the offshore drilling services provider’s stock worth $26,000 after purchasing an additional 6,281 shares during the last quarter. Flagship Harbor Advisors LLC acquired a new stake in shares of Transocean during the fourth quarter worth $27,000. Benedict Financial Advisors Inc. bought a new stake in shares of Transocean in the third quarter valued at about $31,000. Vestmark Advisory Solutions Inc. acquired a new position in shares of Transocean in the third quarter valued at about $31,000. Finally, Forteris Wealth Management Inc. bought a new position in Transocean during the fourth quarter worth about $41,000. Institutional investors and hedge funds own 67.73% of the company’s stock.

Transocean Stock Up 10.4%

The company has a current ratio of 1.08, a quick ratio of 0.91 and a debt-to-equity ratio of 0.60. The firm has a market cap of $6.61 billion, a price-to-earnings ratio of -1.83 and a beta of 1.46. The firm’s 50 day simple moving average is $4.48 and its two-hundred day simple moving average is $3.80.

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.