Transocean (NYSE:RIG) Shares Down 5.9% – Here’s Why

Shares of Transocean Ltd. (NYSE:RIG) were down 5.9% during mid-day trading on Thursday . The company traded as low as $6.94 and last traded at $6.9050. Approximately 18,069,539 shares were traded during mid-day trading, a decline of 57% from the average daily volume of 41,869,531 shares. The stock had previously closed at $7.34.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on RIG. Clarkson Capital downgraded Transocean from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 19th. Barclays upgraded Transocean from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $6.00 to $8.00 in a research note on Thursday, May 7th. Fearnley Fonds lowered Transocean from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 10th. Pareto Securities downgraded shares of Transocean from a “hold” rating to a “sell” rating and set a $5.25 price target on the stock. in a report on Tuesday, February 10th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Transocean in a research report on Tuesday, April 21st. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $6.96.

Transocean Stock Performance

The firm’s fifty day simple moving average is $6.52 and its 200 day simple moving average is $5.36. The company has a market capitalization of $7.60 billion, a PE ratio of -2.28 and a beta of 1.34. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.54 and a quick ratio of 1.20.

Transocean (NYSE:RIG) last released its quarterly earnings data on Monday, May 4th. The offshore drilling services provider reported ($0.03) earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.10). The company had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.02 billion. Transocean had a negative net margin of 66.79% and a positive return on equity of 0.88%. The business’s quarterly revenue was up 19.3% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.10) EPS. On average, research analysts predict that Transocean Ltd. will post 0.16 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Roderick James Mackenzie sold 78,370 shares of Transocean stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $6.36, for a total transaction of $498,433.20. Following the completion of the transaction, the executive vice president directly owned 268,025 shares in the company, valued at approximately $1,704,639. This trade represents a 22.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 9.70% of the company’s stock.

Institutional Investors Weigh In On Transocean

Several hedge funds have recently bought and sold shares of the stock. Kentucky Retirement Systems acquired a new stake in shares of Transocean during the 1st quarter worth approximately $186,000. Janus Henderson Group PLC lifted its stake in shares of Transocean by 5.3% in the 1st quarter. Janus Henderson Group PLC now owns 444,630 shares of the offshore drilling services provider’s stock valued at $2,948,000 after purchasing an additional 22,453 shares during the period. Amundi boosted its holdings in Transocean by 406.1% during the first quarter. Amundi now owns 140,359 shares of the offshore drilling services provider’s stock worth $931,000 after buying an additional 112,628 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Transocean by 27.0% during the first quarter. EverSource Wealth Advisors LLC now owns 6,536 shares of the offshore drilling services provider’s stock worth $43,000 after buying an additional 1,391 shares in the last quarter. Finally, California State Teachers Retirement System grew its position in Transocean by 23.5% during the first quarter. California State Teachers Retirement System now owns 1,157,178 shares of the offshore drilling services provider’s stock valued at $7,672,000 after buying an additional 220,119 shares during the period. Hedge funds and other institutional investors own 67.73% of the company’s stock.

Transocean Company Profile

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.