Transocean Ltd. (NYSE:RIG) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Transocean Ltd. (NYSE:RIG) has received a consensus rating of "Hold" from ten brokerages, with six analysts issuing hold ratings and four giving buy ratings.
• The average 12-month price target for the stock among analysts is $4.58, reflecting recent adjustments from firms such as Morgan Stanley and Susquehanna.
• In its latest earnings report, Transocean reported a loss of $0.10 per share, exceeding expectations, while revenue increased by 18.7% year-over-year to $906 million.

Shares of Transocean Ltd. (NYSE:RIG - Get Free Report) have earned an average recommendation of "Hold" from the ten brokerages that are covering the company, MarketBeat Ratings reports. Six research analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 12 month price objective among analysts that have covered the stock in the last year is $4.58.

RIG has been the topic of several recent research reports. Morgan Stanley lowered their target price on shares of Transocean from $4.00 to $3.50 and set an "equal weight" rating on the stock in a research note on Friday, May 16th. Susquehanna lowered their price target on shares of Transocean from $5.00 to $4.00 and set a "positive" rating on the stock in a research report on Monday, April 14th. Barclays lowered their price target on shares of Transocean from $4.00 to $3.50 and set an "overweight" rating on the stock in a research report on Monday, April 7th. Wall Street Zen raised shares of Transocean from a "sell" rating to a "hold" rating in a research report on Friday, July 18th. Finally, BTIG Research set a $5.00 price target on shares of Transocean and gave the company a "buy" rating in a research report on Monday, May 5th.

Transocean Trading Down 3.1%

Shares of RIG opened at $2.99 on Friday. Transocean has a 52-week low of $1.97 and a 52-week high of $5.98. The company has a quick ratio of 1.06, a current ratio of 1.33 and a debt-to-equity ratio of 0.58. The firm's fifty day moving average is $2.78 and its two-hundred day moving average is $2.97. The stock has a market cap of $2.64 billion, a PE ratio of -3.14, a price-to-earnings-growth ratio of 5.77 and a beta of 2.50.

Transocean (NYSE:RIG - Get Free Report) last announced its earnings results on Monday, April 28th. The offshore drilling services provider reported ($0.10) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.12) by $0.02. Transocean had a negative net margin of 18.79% and a negative return on equity of 0.94%. The company had revenue of $906.00 million for the quarter, compared to analysts' expectations of $884.92 million. During the same quarter in the previous year, the company posted ($0.03) EPS. The firm's quarterly revenue was up 18.7% on a year-over-year basis. Research analysts forecast that Transocean will post 0.14 earnings per share for the current fiscal year.

Insider Transactions at Transocean

In related news, EVP Roderick James Mackenzie sold 22,000 shares of the business's stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $2.78, for a total value of $61,160.00. Following the sale, the executive vice president directly owned 340,841 shares in the company, valued at approximately $947,537.98. The trade was a 6.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 12.27% of the company's stock.

Institutional Trading of Transocean

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Optiver Holding B.V. increased its stake in Transocean by 53.6% during the fourth quarter. Optiver Holding B.V. now owns 8,400 shares of the offshore drilling services provider's stock worth $32,000 after purchasing an additional 2,933 shares during the period. Van Den Berg Management I Inc. increased its stake in Transocean by 11.9% during the fourth quarter. Van Den Berg Management I Inc. now owns 28,155 shares of the offshore drilling services provider's stock worth $106,000 after purchasing an additional 3,000 shares during the period. Nomura Holdings Inc. increased its stake in Transocean by 11.6% during the fourth quarter. Nomura Holdings Inc. now owns 32,651 shares of the offshore drilling services provider's stock worth $122,000 after purchasing an additional 3,390 shares during the period. Mercer Global Advisors Inc. ADV increased its stake in Transocean by 23.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 19,015 shares of the offshore drilling services provider's stock worth $71,000 after purchasing an additional 3,620 shares during the period. Finally, Boston Partners increased its stake in Transocean by 3.2% during the first quarter. Boston Partners now owns 140,904 shares of the offshore drilling services provider's stock worth $447,000 after purchasing an additional 4,331 shares during the period. 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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