Transocean (NYSE:RIG) Shares Up 4.5% - Here's What Happened

Key Points

• Transocean shares rose 4.5% to about $5.70, although trading volume was 88% below the stock’s average daily volume.
• Analyst sentiment remains mixed: MarketBeat’s consensus rating is “Hold” with an average price target of $6.68, following target-price cuts from Susquehanna and Barclays and an upgrade from Fearnley Fonds.
• Transocean’s latest quarter exceeded expectations, with adjusted EPS of $0.03 versus a $0.01 estimate and revenue of $966 million; however, revenue declined 2.2% year over year and the company posted a negative net margin.

Transocean Ltd. (NYSE:RIG - Get Free Report)'s stock price rose 4.5% on Tuesday . The company traded as high as $5.68 and last traded at $5.6950. Approximately 4,630,412 shares traded hands during trading, a decline of 88% from the average daily volume of 40,259,152 shares. The stock had previously closed at $5.45.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Transocean in a report on Friday, July 17th. Fearnley Fonds upgraded shares of Transocean from a "hold" rating to a "strong-buy" rating in a report on Friday, August 7th. Susquehanna decreased their target price on shares of Transocean from $8.00 to $7.00 and set a "positive" rating for the company in a research report on Wednesday, July 8th. Finally, Barclays lowered their target price on shares of Transocean from $8.00 to $7.00 and set an "overweight" rating on the stock in a report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $6.68.

Transocean Price Performance

The firm has a market cap of $6.58 billion, a P/E ratio of -3.14, a P/E/G ratio of 4.19 and a beta of 1.34. The company has a fifty day moving average of $5.51 and a 200-day moving average of $5.97. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.59 and a quick ratio of 1.27.

Transocean (NYSE:RIG - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The offshore drilling services provider reported $0.03 earnings per share for the quarter, beating 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 for the quarter, compared to analysts' expectations of $956.64 million. During the same period last year, the business earned ($1.06) EPS. The business's revenue was down 2.2% on a year-over-year basis. On average, sell-side analysts anticipate that Transocean Ltd. will post 0.18 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Chad Deaton purchased 35,000 shares of the business's stock in a transaction that occurred on Thursday, July 2nd. The shares were 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 owned 237,421 shares in the company, valued at $1,175,233.95. This trade represents a 17.29% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 9.70% of the company's stock.

Institutional Investors Weigh In On Transocean

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC lifted its stake in Transocean by 27.0% in the first quarter. EverSource Wealth Advisors LLC now owns 6,536 shares of the offshore drilling services provider's stock valued at $43,000 after purchasing an additional 1,391 shares during the last quarter. Rockefeller Capital Management L.P. increased its position in Transocean by 19.8% in the fourth quarter. Rockefeller Capital Management L.P. now owns 24,497 shares of the offshore drilling services provider's stock worth $101,000 after buying an additional 4,043 shares during the last quarter. Private Advisor Group LLC raised its stake in shares of Transocean by 16.4% in the first quarter. Private Advisor Group LLC now owns 31,876 shares of the offshore drilling services provider's stock valued at $211,000 after buying an additional 4,500 shares during the period. Root Financial Partners LLC raised its stake in shares of Transocean by 192.6% in the first quarter. Root Financial Partners LLC now owns 7,787 shares of the offshore drilling services provider's stock valued at $52,000 after buying an additional 5,126 shares during the period. Finally, DGS Capital Management LLC lifted its position in shares of Transocean by 42.9% during the 1st quarter. DGS Capital Management LLC now owns 19,111 shares of the offshore drilling services provider's stock valued at $127,000 after buying an additional 5,733 shares during the last quarter. Hedge funds and other institutional investors own 67.73% of the company's stock.

About Transocean

Transocean Ltd. NYSE: RIG is an international offshore contract drilling company that provides drilling services to oil and gas companies. Its primary business is operating mobile offshore drilling units under contracts that support exploration, development and production activities in offshore oil and natural gas fields.

The company's fleet is focused primarily on ultra-deepwater and harsh-environment drilling units, including drillships and semisubmersible rigs. Transocean provides rig operations, drilling personnel, equipment and related services intended to help customers safely construct and complete offshore wells.

Transocean serves energy companies in major offshore drilling regions around the world.

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