Transocean (NYSE:RIG) Hits New 52-Week High – What’s Next?

Shares of Transocean Ltd. (NYSE:RIG) reached a new 52-week high during trading on Friday . The stock traded as high as $6.96 and last traded at $6.96, with a volume of 1815758 shares changing hands. The stock had previously closed at $6.89.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Fearnley Fonds downgraded shares of Transocean from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 10th. Morgan Stanley increased their target price on shares of Transocean from $4.50 to $5.00 and gave the stock an “equal weight” rating in a research note on Monday, February 23rd. Citigroup raised their price target on Transocean from $4.25 to $4.50 and gave the stock a “neutral” rating in a report on Thursday, December 11th. Clarkson Capital cut Transocean from a “strong-buy” rating to a “hold” rating in a research report on Thursday, March 19th. Finally, Susquehanna upped their price objective on Transocean from $6.50 to $7.50 and gave the company a “positive” rating in a research note on Monday, February 23rd. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Transocean presently has a consensus rating of “Reduce” and a consensus target price of $6.38.

Transocean Stock Up 1.0%

The company has a market capitalization of $7.70 billion, a price-to-earnings ratio of -2.20 and a beta of 1.40. The company has a current ratio of 1.56, a quick ratio of 1.27 and a debt-to-equity ratio of 0.64. The firm’s 50 day simple moving average is $5.82 and its 200-day simple moving average is $4.52.

Transocean (NYSE:RIG) last released its earnings results on Friday, February 20th. The offshore drilling services provider reported $0.02 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.07). Transocean had a positive return on equity of 0.41% and a negative net margin of 73.52%.The firm had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1.03 billion. During the same quarter last year, the business posted ($0.09) EPS. The firm’s revenue was up 9.6% on a year-over-year basis. On average, sell-side analysts anticipate that Transocean Ltd. will post 0.14 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Keelan Adamson sold 58,687 shares of the company’s stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $5.00, for a total transaction of $293,435.00. Following the transaction, the chief executive officer owned 1,222,182 shares of the company’s stock, valued at $6,110,910. This represents a 4.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Roderick James Mackenzie sold 78,370 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $6.36, for a total value of $498,433.20. Following the completion of the transaction, the executive vice president owned 268,025 shares of the company’s stock, valued at $1,704,639. The trade was a 22.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 159,903 shares of company stock worth $906,098 in the last ninety days. 12.27% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Transocean

A number of institutional investors and hedge funds have recently made changes to their positions in RIG. TD Waterhouse Canada Inc. increased its holdings in shares of Transocean by 22,432.1% in the 4th quarter. TD Waterhouse Canada Inc. now owns 6,309 shares of the offshore drilling services provider’s stock valued at $26,000 after purchasing an additional 6,281 shares in the last quarter. Josh Arnold Investment Consultant LLC purchased a new stake in Transocean during the second quarter worth about $26,000. Blueshift Asset Management LLC acquired a new position in Transocean during the second quarter worth about $27,000. Flagship Harbor Advisors LLC acquired a new position in Transocean during the fourth quarter worth about $27,000. Finally, Benedict Financial Advisors Inc. purchased a new position in Transocean in the third quarter valued at about $31,000. 67.73% of the stock is owned by institutional investors and hedge funds.

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.