Primecap Management Co. CA Sells 980,340 Shares of Transocean Ltd. (NYSE:RIG)

Key Points

• Primecap Management Co. CA has reduced its stake in Transocean Ltd. by 1.8%, now holding approximately 53.8 million shares worth $170.7 million.
• Several institutional investors, including Pictet Asset Management and Wells Fargo, have increased their holdings in Transocean during the fourth quarter, reflecting strong interest in the company.
• Analysts have mixed views on Transocean, with price targets ranging from $3.50 to $5.00, leading to an average rating of "Hold" from equity researchers.

Primecap Management Co. CA decreased its holdings in Transocean Ltd. (NYSE:RIG - Free Report) by 1.8% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 53,836,071 shares of the offshore drilling services provider's stock after selling 980,340 shares during the quarter. Primecap Management Co. CA owned approximately 6.10% of Transocean worth $170,660,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Renaissance Technologies LLC bought a new position in shares of Transocean during the 4th quarter worth about $16,608,000. SIR Capital Management L.P. acquired a new stake in shares of Transocean in the 4th quarter worth about $14,976,000. Kettle Hill Capital Management LLC increased its stake in Transocean by 85.7% in the 4th quarter. Kettle Hill Capital Management LLC now owns 4,812,608 shares of the offshore drilling services provider's stock valued at $18,047,000 after buying an additional 2,221,186 shares during the last quarter. Keybank National Association OH increased its stake in Transocean by 14.2% in the 1st quarter. Keybank National Association OH now owns 13,480,351 shares of the offshore drilling services provider's stock valued at $42,733,000 after buying an additional 1,672,958 shares during the last quarter. Finally, Cubist Systematic Strategies LLC purchased a new stake in Transocean in the 4th quarter valued at about $4,250,000. Institutional investors own 67.73% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have commented on RIG. Susquehanna decreased their price objective on shares of Transocean from $5.00 to $4.00 and set a "positive" rating for the company in a research note on Monday, April 14th. BTIG Research set a $5.00 price objective on shares of Transocean and gave the company a "buy" rating in a research note on Monday, May 5th. Morgan Stanley decreased their price objective on shares of Transocean from $4.00 to $3.50 and set an "equal weight" rating for the company in a research note on Friday, May 16th. Finally, Wall Street Zen upgraded shares of Transocean from a "sell" rating to a "hold" rating in a research note on Sunday. Seven research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $4.20.

Insider Buying and Selling

In related news, EVP Roderick James Mackenzie sold 22,000 shares of the firm's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $2.78, for a total value of $61,160.00. Following the completion of the transaction, the executive vice president directly owned 340,841 shares of the company's stock, valued at approximately $947,537.98. This trade represents a 6.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 12.27% of the company's stock.

Transocean Stock Performance

RIG traded up $0.14 on Friday, hitting $3.09. The company's stock had a trading volume of 24,029,437 shares, compared to its average volume of 30,005,356. The company's 50 day simple moving average is $2.86 and its 200-day simple moving average is $2.89. The firm has a market cap of $2.91 billion, a P/E ratio of -1.66, a price-to-earnings-growth ratio of 6.63 and a beta of 2.52. Transocean Ltd. has a 12 month low of $1.97 and a 12 month high of $5.32. The company has a quick ratio of 1.06, a current ratio of 1.26 and a debt-to-equity ratio of 0.63.

Transocean Profile

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. The company operates a fleet of mobile offshore drilling units, consisting of ultra-deepwater floaters and harsh environment floaters.