Transocean (NYSE:RIG) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Transocean from “hold” to “sell.” Despite mixed views from other firms, MarketBeat’s analyst consensus remains “hold,” with an average price target of $6.68.
• Transocean reported quarterly EPS of $0.02, matching estimates, while revenue of $937 million fell short of expectations and declined 8.9% year over year.
• Analyst ratings are divided: two rate the stock a Strong Buy, three a Buy, four a Hold, and three a Sell.

Transocean (NYSE:RIG - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other research firms have also weighed in on RIG. Fearnley Fonds upgraded shares of Transocean from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 7th. Zacks Research raised shares of Transocean from a "hold" rating to a "strong-buy" rating in a research note on Monday, October 5th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Transocean in a research note on Thursday, October 15th. Finally, Barclays lowered their target price on Transocean from $8.00 to $7.00 and set an "overweight" rating on the stock in a report on Wednesday, August 12th. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $6.68.

Transocean Stock Up 2.8%

RIG stock opened at $5.25 on Friday. The company has a 50 day moving average price of $5.74 and a two-hundred day moving average price of $5.87. Transocean has a one year low of $3.68 and a one year high of $7.66. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.27 and a current ratio of 1.59. The stock has a market capitalization of $5.86 billion, a P/E ratio of 37.46, a PEG ratio of 4.56 and a beta of 1.44.

Transocean (NYSE:RIG - Get Free Report) last issued its quarterly earnings results on Monday, November 2nd. The offshore drilling services provider reported $0.02 EPS for the quarter, hitting the consensus estimate of $0.02. Transocean had a net margin of 7.25% and a return on equity of 1.85%. The firm had revenue of $937.00 million for the quarter, compared to analysts' expectations of $943.99 million. During the same period in the previous year, the business earned ($2.00) earnings per share. Transocean's revenue for the quarter was down 8.9% compared to the same quarter last year. As a group, sell-side analysts expect that Transocean will post 0.18 EPS for the current year.

Institutional Investors Weigh In On Transocean

Large investors have recently added to or reduced their stakes in the business. Hartford Financial Management Inc. purchased a new position in Transocean during the third quarter valued at $31,000. Costello Asset Management INC acquired a new stake in shares of Transocean in the third quarter valued at about $33,000. Ascentis Independent Advisors purchased a new position in Transocean in the 1st quarter valued at approximately $43,000. EverSource Wealth Advisors LLC raised its position in Transocean by 27.0% in the 1st quarter. EverSource Wealth Advisors LLC now owns 6,536 shares of the offshore drilling services provider's stock valued at $43,000 after purchasing an additional 1,391 shares during the last quarter. Finally, Root Financial Partners LLC purchased a new stake in Transocean in the 3rd quarter worth approximately $48,000. Institutional investors own 67.73% of the company's stock.

Transocean Company Profile

Transocean Ltd. is an offshore drilling contractor that provides drilling services to international oil and gas companies. The company specializes in ultra-deepwater and harsh-environment drilling, helping customers explore for and develop offshore energy resources.

Transocean owns and operates a fleet of mobile offshore drilling units, including ultra-deepwater drillships and semisubmersible rigs. Its services generally include contract drilling, rig operations, well-construction support, and related offshore drilling management.

With roots tracing back to the 1920s, Transocean serves customers in major offshore energy regions around the world.

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