Transocean (NYSE:RIG) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Transocean from “hold” to “strong buy,” although the broader analyst consensus remains “hold” with an average price target of $6.68.
• Transocean reported quarterly EPS of $0.03, beating estimates of $0.01, while revenue reached $966 million, slightly above expectations but down 2.2% year over year.
• Institutional investors increased their holdings, with funds and hedge funds owning 67.73% of Transocean’s outstanding shares.

Transocean (NYSE:RIG - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Monday, Zacks reports.

Other equities analysts have also recently issued research reports about the company. Barclays decreased their price objective on Transocean from $8.00 to $7.00 and set an "overweight" rating for the company in a report on Wednesday, August 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of Transocean in a report on Friday, July 17th. Susquehanna lowered their price objective on Transocean from $8.00 to $7.00 and set a "positive" rating on the stock in a research report on Wednesday, July 8th. Finally, Fearnley Fonds raised shares of Transocean from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $6.68.

Transocean Stock Performance

Shares of RIG opened at $5.41 on Monday. 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 50-day moving average of $5.59 and a two-hundred day moving average of $5.88. The stock has a market cap of $6.04 billion, a P/E ratio of -2.88, a P/E/G ratio of 4.07 and a beta of 1.41. Transocean has a one year low of $3.07 and a one year high of $7.66.

Transocean (NYSE:RIG - Get Free Report) last released its earnings results on Wednesday, August 5th. The offshore drilling services provider reported $0.03 EPS for the quarter, topping analysts' consensus estimates of $0.01 by $0.02. Transocean had a positive return on equity of 2.60% and a negative net margin of 40.24%.The firm had revenue of $966.00 million during the quarter, compared to the consensus estimate of $956.64 million. During the same quarter in the previous year, the company posted ($1.06) earnings per share. The company's revenue was down 2.2% compared to the same quarter last year. As a group, research analysts predict that Transocean will post 0.18 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in RIG. Dimensional Fund Advisors LP increased its holdings in Transocean by 12.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 48,819,576 shares of the offshore drilling services provider's stock worth $323,682,000 after acquiring an additional 5,349,264 shares in the last quarter. State Street Corp increased its stake in shares of Transocean by 8.7% during the second quarter. State Street Corp now owns 27,148,850 shares of the offshore drilling services provider's stock worth $132,758,000 after purchasing an additional 2,166,646 shares in the last quarter. Dalal Street LLC increased its stake in shares of Transocean by 10.6% during the fourth quarter. Dalal Street LLC now owns 27,040,133 shares of the offshore drilling services provider's stock worth $111,676,000 after purchasing an additional 2,597,801 shares in the last quarter. Elliott Investment Management L.P. acquired a new position in shares of Transocean during the 1st quarter worth about $103,606,000. Finally, Keybank National Association OH lifted its stake in 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 buying an additional 405,804 shares in the last quarter. 67.73% of the stock is owned by institutional investors and hedge funds.

Transocean Company Profile

Transocean Ltd. is an offshore contract drilling company that provides drilling services to the international oil and gas industry. The company operates a fleet of mobile offshore drilling units, including ultra-deepwater and harsh-environment drillships and semisubmersible rigs, which are contracted by energy companies to drill exploration, appraisal and development wells.

Transocean's services support offshore drilling programs in challenging environments around the world. Its operations have included activity in the Gulf of Mexico, Brazil, the North Sea, West Africa and other major offshore regions.

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