Ninepoint Partners LP Buys Shares of 7,000,000 Transocean Ltd. $RIG

Key Points

• Ninepoint Partners initiated a 7 million-share position in Transocean valued at approximately $34.2 million, representing 2.6% of its portfolio and about 0.63% of Transocean’s shares.
• Transocean reported quarterly EPS of $0.03, beating estimates of $0.01, while revenue of $966 million also exceeded expectations; however, revenue declined 2.2% year over year and the company posted a negative net margin.
• Institutional ownership remains high at 67.73%, while analyst sentiment is mixed: the stock has an overall “Hold” rating and a consensus price target of $6.68, compared with a recent share price of $6.00.

Ninepoint Partners LP bought a new position in Transocean Ltd. (NYSE:RIG - Free Report) in the second quarter, according to its most recent disclosure with the SEC. The firm bought 7,000,000 shares of the offshore drilling services provider's stock, valued at approximately $34,230,000. Transocean comprises approximately 2.6% of Ninepoint Partners LP's portfolio, making the stock its 7th biggest position. Ninepoint Partners LP owned about 0.63% of Transocean as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of the stock. Vanguard Group Inc. grew its holdings in shares of Transocean by 2.6% in the fourth quarter. Vanguard Group Inc. now owns 97,006,263 shares of the offshore drilling services provider's stock valued at $400,636,000 after purchasing an additional 2,487,015 shares during the period. Dimensional Fund Advisors LP increased its position in Transocean by 12.3% during the first quarter. Dimensional Fund Advisors LP now owns 48,819,576 shares of the offshore drilling services provider's stock worth $323,682,000 after purchasing an additional 5,349,264 shares during the last quarter. Dalal Street LLC raised its stake in 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 during the period. Morgan Stanley boosted its holdings in Transocean by 9.4% in the 4th quarter. Morgan Stanley now owns 24,790,325 shares of the offshore drilling services provider's stock valued at $102,384,000 after purchasing an additional 2,135,964 shares during the last quarter. Finally, State Street Corp boosted its holdings in Transocean by 13.1% in the 4th quarter. State Street Corp now owns 24,725,897 shares of the offshore drilling services provider's stock valued at $102,118,000 after purchasing an additional 2,856,372 shares during the last quarter. Hedge funds and other institutional investors own 67.73% of the company's stock.

Transocean Stock Up 2.7%

Shares of NYSE RIG opened at $6.00 on Friday. The company has a quick ratio of 1.27, a current ratio of 1.59 and a debt-to-equity ratio of 0.56. The business's 50 day moving average is $5.33 and its two-hundred day moving average is $5.98. Transocean Ltd. has a 52-week low of $2.76 and a 52-week high of $7.66. The firm has a market cap of $6.70 billion, a price-to-earnings ratio of -3.19, a PEG ratio of 3.76 and a beta of 1.32.

Transocean (NYSE:RIG - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The offshore drilling services provider reported $0.03 EPS for the quarter, topping the consensus estimate 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 business had revenue of $966.00 million during the quarter, compared to analyst estimates of $956.64 million. During the same period last year, the business posted ($1.06) earnings per share. The company's quarterly revenue was down 2.2% on a year-over-year basis. Research analysts predict that Transocean Ltd. will post 0.14 EPS for the current year.

Insider Buying and Selling

In other news, Director Chad C. Deaton bought 35,000 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was bought at an average cost of $4.95 per share, for a total transaction of $173,250.00. Following the acquisition, the director directly owned 237,421 shares of the company's stock, valued at $1,175,233.95. The trade was a 17.29% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. 9.70% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of brokerages have recently issued reports on RIG. TD Cowen raised their price target on shares of Transocean from $5.50 to $6.00 and gave the stock a "hold" rating in a report on Wednesday, May 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Transocean in a research report on Friday, July 17th. Barclays cut their target price on Transocean from $8.00 to $7.00 and set an "overweight" rating for the company in a research note on Wednesday, August 12th. Fearnley Fonds raised Transocean from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 7th. Finally, Susquehanna reduced 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. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target 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.

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