Arlington Capital Management Inc. Invests $2.61 Million in Transocean Ltd. $RIG

Key Points

• Arlington Capital Management acquired 534,299 Transocean shares worth approximately $2.61 million, making RIG its 21st-largest holding and about 1.5% of its portfolio. Institutional investors collectively own 67.73% of the company.
• Transocean reported quarterly EPS of $0.03, exceeding the $0.01 consensus estimate, while revenue reached $966 million. However, revenue declined 2.2% year over year and the company posted a negative net margin of 40.24%.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $6.68. RIG recently traded at $5.72, while its 12-month range is $3.03 to $7.66.

Arlington Capital Management Inc. acquired a new stake in Transocean Ltd. (NYSE:RIG - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 534,299 shares of the offshore drilling services provider's stock, valued at approximately $2,613,000. Transocean makes up approximately 1.5% of Arlington Capital Management Inc.'s investment portfolio, making the stock its 21st largest holding.

Other institutional investors have also modified their holdings of the company. Integrated Wealth Concepts LLC lifted its stake in shares of Transocean by 12.1% during the first quarter. Integrated Wealth Concepts LLC now owns 69,637 shares of the offshore drilling services provider's stock worth $221,000 after purchasing an additional 7,520 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Transocean by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 434,031 shares of the offshore drilling services provider's stock valued at $1,376,000 after buying an additional 18,957 shares during the period. Goldman Sachs Group Inc. lifted its position in Transocean by 88.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 12,151,817 shares of the offshore drilling services provider's stock worth $38,521,000 after acquiring an additional 5,719,637 shares in the last quarter. Cetera Investment Advisers boosted its holdings in Transocean by 5.7% in the 2nd quarter. Cetera Investment Advisers now owns 233,984 shares of the offshore drilling services provider's stock worth $606,000 after acquiring an additional 12,532 shares during the period. Finally, Invesco Ltd. boosted its holdings in Transocean by 29.2% in the 2nd quarter. Invesco Ltd. now owns 1,032,774 shares of the offshore drilling services provider's stock worth $2,675,000 after acquiring an additional 233,458 shares during the period. Hedge funds and other institutional investors own 67.73% of the company's stock.

Transocean Stock Down 0.8%

RIG stock opened at $5.72 on Thursday. The company has a current ratio of 1.59, a quick ratio of 1.27 and a debt-to-equity ratio of 0.56. The firm has a 50 day simple moving average of $5.47 and a 200-day simple moving average of $5.99. The company has a market capitalization of $6.38 billion, a P/E ratio of -3.04, a PEG ratio of 4.63 and a beta of 1.34. Transocean Ltd. has a twelve month low of $3.03 and a twelve month high of $7.66.

Transocean (NYSE:RIG - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The offshore drilling services provider reported $0.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.02. The firm had revenue of $966.00 million for the quarter, compared to analysts' expectations of $956.64 million. Transocean had a negative net margin of 40.24% and a positive return on equity of 2.60%. The firm's quarterly revenue was down 2.2% on a year-over-year basis. During the same period in the prior year, the company posted ($1.06) earnings per share. On average, equities research analysts predict that Transocean Ltd. will post 0.17 earnings per share for the current fiscal year.

Insider Activity at Transocean

In other news, Director Chad Deaton purchased 35,000 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The stock was acquired at an average cost of $4.95 per share, for a total transaction of $173,250.00. Following the completion of the purchase, the director owned 237,421 shares of the company's stock, valued at approximately $1,175,233.95. This trade represents a 17.29% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 9.70% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on RIG. Barclays dropped their price objective on shares of Transocean from $8.00 to $7.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 12th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Transocean in a report on Friday, July 17th. Susquehanna cut their price objective on shares of Transocean from $8.00 to $7.00 and set a "positive" rating on the stock in a report on Wednesday, July 8th. Finally, Fearnley Fonds raised shares of Transocean from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $6.68.

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.

Want to see what other hedge funds are holding RIG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Transocean Ltd. (NYSE:RIG - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.