Ghisallo Capital Management LLC Makes New Investment in Transocean Ltd. $RIG

Key Points

• Ghisallo Capital Management LLC bought a new stake of 18,500,000 shares of Transocean (NYSE: RIG) in Q3 valued at about $57.72 million, making the stock its 12th-largest holding and ~1.9% of Ghisallo’s portfolio.
• Transocean reported quarterly EPS of $0.02 (missing estimates by $0.07) with revenue up 9.6% to $1.04 billion; the stock trades near $6.37, has a market cap of $7.02 billion and a 52-week range of $1.97–$6.96.
• Company insiders sold a total of 159,903 shares (~$906k) in the last quarter, and analysts are mixed—two Buy, four Hold, three Sell—with a MarketBeat consensus rating of Reduce and an average price target of $6.38.

Ghisallo Capital Management LLC purchased a new stake in Transocean Ltd. (NYSE:RIG - Free Report) in the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 18,500,000 shares of the offshore drilling services provider's stock, valued at approximately $57,720,000. Transocean accounts for approximately 1.9% of Ghisallo Capital Management LLC's holdings, making the stock its 12th biggest holding. Ghisallo Capital Management LLC owned 1.68% of Transocean at the end of the most recent reporting period.

Several other large investors also recently made changes to their positions in RIG. Josh Arnold Investment Consultant LLC bought a new position in Transocean during the 2nd quarter worth about $26,000. Blueshift Asset Management LLC acquired a new stake in Transocean in the 2nd quarter valued at approximately $27,000. SBI Securities Co. Ltd. lifted its stake in Transocean by 78.0% in the 2nd quarter. SBI Securities Co. Ltd. now owns 10,729 shares of the offshore drilling services provider's stock valued at $28,000 after acquiring an additional 4,700 shares in the last quarter. Benedict Financial Advisors Inc. bought a new stake in shares of Transocean in the third quarter worth $31,000. Finally, Vestmark Advisory Solutions Inc. acquired a new position in Transocean during the third quarter worth $31,000. Institutional investors own 67.73% of the company's stock.

Transocean Stock Performance

Shares of RIG stock opened at $6.37 on Friday. Transocean Ltd. has a 52 week low of $1.97 and a 52 week high of $6.96. The company has a market capitalization of $7.02 billion, a price-to-earnings ratio of -2.02 and a beta of 1.40. The company has a 50-day simple moving average of $5.43 and a 200 day simple moving average of $4.31. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.27 and a current ratio of 1.56.

Transocean (NYSE:RIG - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The offshore drilling services provider reported $0.02 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.07). The company had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.03 billion. Transocean had a negative net margin of 73.52% and a positive return on equity of 0.41%. The firm's revenue was up 9.6% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.09) earnings per share. On average, sell-side analysts predict that Transocean Ltd. will post 0.14 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Keelan Adamson sold 58,687 shares of the stock in a transaction that occurred on Tuesday, January 27th. The stock was sold at an average price of $5.00, for a total transaction of $293,435.00. Following the transaction, the chief executive officer owned 1,222,182 shares in the company, valued at approximately $6,110,910. This trade represents a 4.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Roderick James Mackenzie sold 78,370 shares of the business's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $6.36, for a total value of $498,433.20. Following the completion of the sale, the executive vice president owned 268,025 shares of the company's stock, valued at $1,704,639. This trade represents a 22.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 159,903 shares of company stock worth $906,098. 12.27% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several research analysts recently commented on RIG shares. Citigroup increased their price target on Transocean from $4.25 to $4.50 and gave the company a "neutral" rating in a research report on Thursday, December 11th. BTIG Research upped their price objective on Transocean from $6.00 to $10.00 and gave the stock a "buy" rating in a research note on Monday, February 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Transocean in a research note on Thursday, January 22nd. Susquehanna raised their target price on shares of Transocean from $6.50 to $7.50 and gave the company a "positive" rating in a research note on Monday, February 23rd. Finally, Morgan Stanley lifted their price target on Transocean from $4.50 to $5.00 and gave the stock an "equal weight" rating in a report on Monday, February 23rd. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, Transocean currently has an average rating of "Reduce" and a consensus price target of $6.38.

Transocean 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.

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