Transocean (NYSE:RIG) Stock Crosses Above 200-Day Moving Average - What's Next?

Key Points

• Transocean shares briefly moved above their 200-day moving average of $5.99, reaching $6.02 before last trading at $5.7650, down 1.5%.
• Analyst sentiment remains mixed: MarketBeat reports an average rating of “Hold” and an average price target of $6.68, with ratings ranging from Strong Buy to Sell.
• Transocean beat quarterly expectations, reporting $0.03 in earnings per share versus $0.01 expected and $966 million in revenue, though revenue declined 2.2% year over year and the company posted a negative net margin.

Transocean Ltd. (NYSE:RIG - Get Free Report) shares passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $5.99 and traded as high as $6.02. Transocean shares last traded at $5.7650, with a volume of 44,088,936 shares traded.

Analyst Upgrades and Downgrades

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

Transocean Trading Down 1.5%

The firm's 50 day moving average price is $5.45 and its 200-day moving average price is $5.99. The stock has a market cap of $6.44 billion, a P/E ratio of -3.07, a P/E/G ratio of 4.70 and a beta of 1.34. 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 announced its quarterly earnings results 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 negative net margin of 40.24% and a positive return on equity of 2.60%. The company had revenue of $966.00 million during the quarter, compared to the consensus estimate of $956.64 million. During the same quarter last year, the firm earned ($1.06) earnings per share. The firm's quarterly revenue was down 2.2% compared to the same quarter last year. As a group, equities research analysts forecast that Transocean Ltd. will post 0.17 earnings per share for the current year.

Insider Buying and Selling

In other Transocean news, Director Chad Deaton bought 35,000 shares of Transocean stock in a transaction on Thursday, July 2nd. The stock was acquired at an average price of $4.95 per share, with a total value of $173,250.00. Following the acquisition, the director owned 237,421 shares in the company, valued at approximately $1,175,233.95. This trade represents a 17.29% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 9.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Josh Arnold Investment Consultant LLC purchased a new stake in shares of Transocean during the second quarter valued at $26,000. Elevation Point Wealth Partners LLC purchased a new position in Transocean in the 3rd quarter worth about $31,000. Larson Financial Group LLC lifted its stake in Transocean by 203.8% during the 3rd quarter. Larson Financial Group LLC now owns 11,030 shares of the offshore drilling services provider's stock valued at $34,000 after acquiring an additional 7,399 shares during the period. EP Wealth Advisors LLC bought a new position in Transocean during the 2nd quarter valued at about $34,000. Finally, Banco BTG Pactual S.A. purchased a new stake in shares of Transocean during the 3rd quarter valued at about $38,000. 67.73% of the stock is owned by institutional investors.

About Transocean

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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