Hsbc Holdings PLC Reduces Holdings in Transocean Ltd. $RIG

Key Points

• HSBC Holdings reduced its stake in Transocean by 6.4% in the first quarter, selling 200,128 shares and leaving it with 2,916,902 shares valued at about $19.2 million.
• Insider buying continued, with director Chad C. Deaton purchasing 35,000 shares at $4.95 each, increasing his position by 17.29%.
• Analyst sentiment is mixed: Transocean has a consensus rating of “Hold” and an average price target of $6.82, while its latest quarter missed EPS estimates but beat revenue expectations.

Hsbc Holdings PLC trimmed its stake in shares of Transocean Ltd. (NYSE:RIG - Free Report) by 6.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,916,902 shares of the offshore drilling services provider's stock after selling 200,128 shares during the quarter. Hsbc Holdings PLC owned approximately 0.26% of Transocean worth $19,238,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of RIG. TD Waterhouse Canada Inc. boosted its stake in shares of Transocean by 22,432.1% during the fourth quarter. TD Waterhouse Canada Inc. now owns 6,309 shares of the offshore drilling services provider's stock valued at $26,000 after purchasing an additional 6,281 shares during the period. Josh Arnold Investment Consultant LLC purchased a new position in shares of Transocean in the second quarter worth $26,000. Flagship Harbor Advisors LLC purchased a new position in shares of Transocean in the fourth quarter worth $27,000. Elevation Point Wealth Partners LLC bought a new stake in Transocean during the 3rd quarter valued at $31,000. Finally, Larson Financial Group LLC raised its holdings in Transocean by 203.8% during the 3rd quarter. Larson Financial Group LLC now owns 11,030 shares of the offshore drilling services provider's stock valued at $34,000 after buying an additional 7,399 shares during the last quarter. 67.73% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Transocean

In related news, Director Chad C. Deaton acquired 35,000 shares of the stock in a transaction 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 acquisition, the director directly owned 237,421 shares of the company's stock, valued at approximately $1,175,233.95. This represents a 17.29% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 9.70% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Barclays raised shares of Transocean from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $6.00 to $8.00 in a report on Thursday, May 7th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Transocean in a research note on Friday. Morgan Stanley increased their target price on shares of Transocean from $5.00 to $7.00 and gave the stock an "equal weight" rating in a report on Wednesday, April 15th. Susquehanna cut their target price on Transocean from $8.00 to $7.00 and set a "positive" rating on the stock in a research note on Wednesday, July 8th. Finally, TD Cowen boosted their price target on Transocean from $5.50 to $6.00 and gave the company a "hold" rating in a report on Wednesday, May 6th. Three research analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, Transocean has a consensus rating of "Hold" and an average target price of $6.82.

Transocean Stock Performance

Shares of RIG stock opened at $5.24 on Wednesday. The firm has a market capitalization of $5.84 billion, a price-to-earnings ratio of -1.76, a PEG ratio of 2.94 and a beta of 1.30. The stock has a fifty day moving average of $5.80 and a 200 day moving average of $5.83. Transocean Ltd. has a 52 week low of $2.63 and a 52 week high of $7.66. The company has a quick ratio of 1.20, a current ratio of 1.54 and a debt-to-equity ratio of 0.60.

Transocean (NYSE:RIG - Get Free Report) last issued its quarterly earnings data on Monday, May 4th. The offshore drilling services provider reported ($0.03) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.07 by ($0.10). The company had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.02 billion. Transocean had a negative net margin of 66.79% and a positive return on equity of 0.88%. The firm's revenue for the quarter was up 19.3% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.10) earnings per share. As a group, research analysts expect that Transocean Ltd. will post 0.16 earnings per share for the current year.

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.

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