Transocean Target of Unusually High Options Trading (NYSE:RIG)

Transocean Ltd. (NYSE:RIG - Get Free Report) was the target of some unusual options trading activity on Tuesday. Stock investors purchased 57,204 call options on the company. This represents an increase of approximately 83% compared to the average volume of 31,292 call options.

Transocean Price Performance

Shares of NYSE:RIG traded down $0.08 during midday trading on Tuesday, reaching $6.16. 10,611,527 shares of the company's stock traded hands, compared to its average volume of 17,731,148. The company has a fifty day simple moving average of $5.96 and a two-hundred day simple moving average of $5.84. Transocean has a 1 year low of $4.45 and a 1 year high of $8.88. The company has a market cap of $5.04 billion, a P/E ratio of -11.85 and a beta of 2.83. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.04 and a current ratio of 1.35.

Transocean (NYSE:RIG - Get Free Report) last issued its quarterly earnings results on Monday, April 29th. The offshore drilling services provider reported ($0.03) earnings per share for the quarter, beating analysts' consensus estimates of ($0.13) by $0.10. Transocean had a negative net margin of 13.27% and a negative return on equity of 4.67%. The firm had revenue of $767.00 million for the quarter, compared to analyst estimates of $781.86 million. During the same period last year, the company posted ($0.38) EPS. Transocean's quarterly revenue was up 18.2% compared to the same quarter last year. Equities analysts predict that Transocean will post 0.01 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on RIG shares. Susquehanna upgraded shares of Transocean from a "neutral" rating to a "positive" rating and increased their price target for the stock from $5.50 to $9.00 in a report on Monday, April 8th. StockNews.com raised shares of Transocean to a "sell" rating in a report on Tuesday, February 20th. Evercore ISI lowered their price target on shares of Transocean from $9.00 to $7.00 and set an "outperform" rating on the stock in a report on Wednesday, May 1st. Benchmark reaffirmed a "buy" rating and set a $8.00 target price on shares of Transocean in a report on Tuesday, April 30th. Finally, Bank of America boosted their price target on Transocean from $5.50 to $6.00 and gave the company an "underperform" rating in a report on Monday, April 15th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and five have assigned a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $7.70.

Insider Buying and Selling at Transocean

In related news, Director (Cyprus) Ltd Perestroika acquired 2,000,000 shares of the stock in a transaction dated Wednesday, May 15th. The stock was acquired at an average cost of $6.01 per share, for a total transaction of $12,020,000.00. Following the completion of the purchase, the director now owns 87,574,894 shares of the company's stock, valued at approximately $526,325,112.94. The purchase was disclosed in a document filed with the SEC, which is available through this link. 12.54% of the stock is currently owned by company insiders.

Institutional Trading of Transocean

Several large investors have recently made changes to their positions in the company. OLD Point Trust & Financial Services N A purchased a new stake in shares of Transocean in the fourth quarter valued at approximately $25,000. VisionPoint Advisory Group LLC acquired a new stake in shares of Transocean in the 4th quarter worth $28,000. Private Trust Co. NA raised its holdings in shares of Transocean by 1,489.8% during the 4th quarter. Private Trust Co. NA now owns 8,537 shares of the offshore drilling services provider's stock worth $54,000 after acquiring an additional 8,000 shares during the period. Fiducient Advisors LLC purchased a new position in shares of Transocean during the 1st quarter worth $63,000. Finally, Fermata Advisors LLC acquired a new position in shares of Transocean during the 1st quarter valued at about $75,000. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

About Transocean

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.