Transocean Ltd. (NYSE:RIG) Stock Has Consensus Price Target of $6.61 According to Analysts

Key Points

• Analysts give Transocean a consensus “Hold” rating among 12 brokerages: three rate it Sell, five Hold, three Buy, and one Strong Buy. The average 12-month price target is $6.61.
• Recent analyst actions were mixed: Morgan Stanley lowered its target to $6.50 with an Equal Weight rating, while Barclays cut its target to $7.00 but maintained Overweight.
• Transocean reported quarterly EPS of $0.02, matching expectations, while revenue of $937 million fell short of estimates and declined 8.9% year over year.

Transocean Ltd. (NYSE:RIG - Get Free Report) has been assigned a consensus rating of "Hold" from the twelve brokerages that are covering the stock, MarketBeat.com reports. Three equities research analysts have rated the stock with a sell recommendation, five have given a hold recommendation, three have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year target price among brokers that have covered the stock in the last year is $6.61.

RIG has been the topic of several analyst reports. Morgan Stanley cut their price target on shares of Transocean from $7.00 to $6.50 and set an "equal weight" rating on the stock in a report on Monday, November 9th. Barclays reduced their price objective on Transocean from $8.00 to $7.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 12th. Weiss Ratings restated a "sell (d-)" rating on shares of Transocean in a report on Thursday, October 15th. Fearnley Fonds raised Transocean from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Finally, Zacks Research cut shares of Transocean from a "strong-buy" rating to a "hold" rating in a research note on Friday, November 6th.

Hedge Funds Weigh In On Transocean

Hedge funds have recently modified their holdings of the stock. Assenagon Asset Management S.A. purchased a new position in shares of Transocean during the 2nd quarter valued at approximately $37,477,000. Elliott Investment Management L.P. acquired a new position in shares of Transocean in the 1st quarter valued at $103,606,000. Arlington Capital Management Inc. purchased a new position in shares of Transocean during the second quarter worth about $2,613,000. Dimensional Fund Advisors LP lifted its holdings in Transocean by 12.3% in the first quarter. Dimensional Fund Advisors LP now owns 48,819,576 shares of the offshore drilling services provider's stock valued at $323,682,000 after acquiring an additional 5,349,264 shares during the period. Finally, Ninepoint Partners LP acquired a new stake in shares of Transocean in the 2nd quarter worth approximately $34,230,000. Institutional investors and hedge funds own 67.73% of the company's stock.

Transocean Stock Performance

Transocean stock traded up $0.20 during mid-day trading on Friday, hitting $5.53. 30,143,201 shares of the company's stock traded hands, compared to its average volume of 44,885,152. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.53 and a quick ratio of 1.24. The stock has a market cap of $6.17 billion, a price-to-earnings ratio of 39.46, a P/E/G ratio of 3.63 and a beta of 1.44. The firm has a 50 day simple moving average of $5.68 and a two-hundred day simple moving average of $5.88. Transocean has a fifty-two week low of $3.68 and a fifty-two week high of $7.66.

Transocean (NYSE:RIG - Get Free Report) last released its quarterly earnings data on Monday, November 2nd. The offshore drilling services provider reported $0.02 earnings per share for the quarter, meeting the consensus estimate of $0.02. The business had revenue of $937.00 million for the quarter, compared to analyst estimates of $943.99 million. Transocean had a return on equity of 1.84% and a net margin of 7.25%. Transocean's revenue was down 8.9% compared to the same quarter last year. During the same period last year, the firm posted ($2.00) earnings per share. On average, research analysts expect that Transocean will post 0.20 EPS for the current fiscal year.

Transocean Company Profile

Transocean Ltd. is an offshore contract drilling company that provides drilling services to oil and gas companies around the world. Its work focuses on offshore exploration and development, particularly in deepwater and harsh-environment locations. The company owns and operates a fleet of offshore drilling rigs, including drillships and semisubmersible rigs. It contracts these rigs to customers and provides the crews and related services needed to conduct offshore drilling operations. Transocean serves customers across multiple offshore regions worldwide.

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