Transocean Ltd. $RIG Shares Sold by Capital World Investors

Key Points

• Capital World Investors cut its stake in Transocean by 49.2% in the third quarter, selling 18,074,620 shares and retaining 18,665,736 shares (about 1.69% of the company), valued at roughly $58.24 million.
• Corporate insiders have been selling recently—159,903 shares worth $906,098 in the past three months—including CEO Keelan Adamson (58,687 shares at $5.00) and EVP Roderick Mackenzie (78,370 shares at $6.36), reducing their holdings.
• Transocean missed on the most recent quarter with EPS of $0.02 versus a $0.09 consensus and a negative net margin (~-73.5%), and analysts’ consensus rating is Reduce with an average target price of $6.38.

Capital World Investors lessened its stake in shares of Transocean Ltd. (NYSE:RIG - Free Report) by 49.2% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 18,665,736 shares of the offshore drilling services provider's stock after selling 18,074,620 shares during the period. Capital World Investors owned approximately 1.69% of Transocean worth $58,237,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Integrated Wealth Concepts LLC grew its holdings 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 valued at $221,000 after buying an additional 7,520 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Transocean by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 434,031 shares of the offshore drilling services provider's stock worth $1,376,000 after acquiring an additional 18,957 shares during the last quarter. 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 during the period. Bank of Montreal Can grew its stake in Transocean by 6.4% during the 2nd quarter. Bank of Montreal Can now owns 159,347 shares of the offshore drilling services provider's stock valued at $413,000 after purchasing an additional 9,527 shares during the last quarter. Finally, Wedbush Securities Inc. grew its stake in Transocean by 40.2% during the 2nd quarter. Wedbush Securities Inc. now owns 15,350 shares of the offshore drilling services provider's stock valued at $40,000 after purchasing an additional 4,400 shares during the last quarter. Hedge funds and other institutional investors own 67.73% of the company's stock.

Insider Transactions at Transocean

In related news, CEO Keelan Adamson sold 58,687 shares of the company's stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $5.00, for a total transaction of $293,435.00. Following the completion of the transaction, the chief executive officer owned 1,222,182 shares in the company, valued at $6,110,910. This represents a 4.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Roderick James Mackenzie sold 78,370 shares of the firm's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $6.36, for a total transaction of $498,433.20. Following the completion of the transaction, the executive vice president directly owned 268,025 shares in the company, valued at $1,704,639. This represents a 22.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 159,903 shares of company stock valued at $906,098 in the last three months. Corporate insiders own 12.27% of the company's stock.

Transocean Trading Down 0.6%

Shares of RIG stock opened at $6.27 on Friday. Transocean Ltd. has a 1-year low of $1.97 and a 1-year high of $6.96. The company has a market cap of $6.92 billion, a price-to-earnings ratio of -1.99 and a beta of 1.40. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.56 and a quick ratio of 1.27. The stock has a 50 day simple moving average of $5.38 and a 200-day simple moving average of $4.28.

Transocean (NYSE:RIG - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The offshore drilling services provider reported $0.02 EPS 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 analysts' expectations of $1.03 billion. Transocean had a positive return on equity of 0.41% and a negative net margin of 73.52%.Transocean's revenue was up 9.6% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.09) EPS. On average, equities research analysts expect that Transocean Ltd. will post 0.14 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. JPMorgan Chase & Co. restated an "underweight" rating on shares of Transocean in a research note on Wednesday, December 10th. Barclays downgraded shares of Transocean from an "overweight" rating to an "equal weight" rating and increased their price target for the stock from $4.50 to $6.00 in a report on Wednesday, February 18th. Morgan Stanley raised their price target on shares of Transocean from $4.50 to $5.00 and gave the stock an "equal weight" rating in a research report on Monday, February 23rd. Citigroup upped their price objective on shares of Transocean from $4.25 to $4.50 and gave the company a "neutral" rating in a report on Thursday, December 11th. Finally, Susquehanna increased their price objective on shares of Transocean from $6.50 to $7.50 and gave the stock a "positive" rating in a research note on Monday, February 23rd. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Transocean currently has an average rating of "Reduce" and an average target price of $6.38.

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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