Traders Buy High Volume of Transocean Call Options (NYSE:RIG)

Key Points

• Transocean Ltd. experienced significant trading activity on Tuesday, with investors purchasing 65,483 call options, marking a 427% increase from its average volume.
• Barclays raised its price target on Transocean shares from $3.50 to $4.00 with an "overweight" rating, while overall, the stock has an average target price of $4.26.
• Institutional investors have increased their holdings in Transocean, with 67.73% of the stock owned by hedge funds and other institutions, highlighting growing confidence in the company's prospects.

Transocean Ltd. (NYSE:RIG - Get Free Report) was the target of some unusual options trading activity on Tuesday. Stock investors purchased 65,483 call options on the company. This is an increase of 427% compared to the average volume of 12,414 call options.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Barclays upped their price target on shares of Transocean from $3.50 to $4.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 13th. Wall Street Zen upgraded Transocean from a "sell" rating to a "hold" rating in a research report on Sunday, August 10th. Three analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $4.26.

Transocean Price Performance

Transocean stock traded up $0.29 during trading hours on Tuesday, hitting $3.68. The stock had a trading volume of 34,666,607 shares, compared to its average volume of 34,777,258. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.26 and a quick ratio of 0.99. The stock has a market capitalization of $3.47 billion, a price-to-earnings ratio of -1.98, a PEG ratio of 6.39 and a beta of 2.79. Transocean has a 1-year low of $1.97 and a 1-year high of $4.74. The stock's fifty day moving average is $3.02 and its two-hundred day moving average is $2.81.

Institutional Investors Weigh In On Transocean

Hedge funds and other institutional investors have recently modified their holdings of the company. Cetera Investment Advisers raised its holdings in Transocean by 11.4% in the fourth quarter. Cetera Investment Advisers now owns 195,435 shares of the offshore drilling services provider's stock valued at $733,000 after buying an additional 19,962 shares during the period. Quantinno Capital Management LP lifted its position in Transocean by 263.1% during the 4th quarter. Quantinno Capital Management LP now owns 58,160 shares of the offshore drilling services provider's stock worth $218,000 after acquiring an additional 42,144 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Transocean by 7.1% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,289,576 shares of the offshore drilling services provider's stock worth $4,836,000 after purchasing an additional 85,660 shares during the last quarter. B. Riley Wealth Advisors Inc. purchased a new stake in Transocean during the 4th quarter worth approximately $117,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of Transocean in the 4th quarter valued at approximately $627,000. 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.

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