Transocean (NYSE:RIG) Stock Jumps 7.8% - Here's What Happened

Key Points

• Transocean shares surged 7.8% to about $5.58 in mid-day trading, with the stock trading near its 50-day moving average.
• Analyst sentiment remains mixed: Fearnley raised the stock to “strong buy,” while Barclays and Susquehanna cut their price targets to $7. MarketBeat’s consensus rating is “Hold,” with a $6.68 target price.
• Transocean beat quarterly expectations with earnings of $0.03 per share versus a $0.01 estimate and revenue of $966 million, while institutional investors—including Elliott Investment Management and Dimensional Fund Advisors—expanded or initiated positions.

Transocean Ltd. (NYSE:RIG - Get Free Report) shares shot up 7.8% on Monday. The company traded as high as $5.54 and last traded at $5.5750. 13,287,213 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 40,646,996 shares. The stock had previously closed at $5.17.

Analyst Ratings Changes

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

Transocean Trading Up 7.8%

The firm's 50 day moving average is $5.57 and its 200 day moving average is $5.89. The company has a market cap of $6.23 billion, a PE ratio of -2.97, a PEG ratio of 3.82 and a beta of 1.41. 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 EPS for the quarter, beating the consensus estimate of $0.01 by $0.02. The firm had revenue of $966.00 million during the quarter, compared to the consensus estimate of $956.64 million. Transocean had a negative net margin of 40.24% and a positive return on equity of 2.60%. The business's quarterly revenue was down 2.2% compared to the same quarter last year. During the same period last year, the firm earned ($1.06) EPS. On average, equities analysts anticipate that Transocean Ltd. will post 0.18 earnings per share for the current year.

Institutional Investors Weigh In On Transocean

Large investors have recently added to or reduced their stakes in the company. Assenagon Asset Management S.A. bought a new position in shares of Transocean during the 2nd quarter valued at $37,477,000. Elliott Investment Management L.P. purchased a new position in shares of Transocean in the first quarter worth about $103,606,000. Dimensional Fund Advisors LP lifted its stake in shares of Transocean by 12.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 48,819,576 shares of the offshore drilling services provider's stock valued at $323,682,000 after acquiring an additional 5,349,264 shares during the last quarter. Rokos Capital Management LLP purchased a new stake in Transocean during the 1st quarter valued at about $21,030,000. Finally, Ninepoint Partners LP bought a new position in Transocean during the 2nd quarter worth approximately $34,230,000. Hedge funds and other institutional investors own 67.73% of the company's stock.

Transocean Company Profile

Transocean Ltd. is an offshore contract drilling company that provides drilling services to the international oil and gas industry. The company operates a fleet of mobile offshore drilling units, including ultra-deepwater and harsh-environment drillships and semisubmersible rigs, which are contracted by energy companies to drill exploration, appraisal and development wells.

Transocean's services support offshore drilling programs in challenging environments around the world. Its operations have included activity in the Gulf of Mexico, Brazil, the North Sea, West Africa and other major offshore regions.

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