Transocean (NYSE:RIG) Hits New 52-Week Low - Should You Sell?

Transocean Ltd. (NYSE:RIG - Get Free Report) reached a new 52-week low during trading on Wednesday . The stock traded as low as $2.11 and last traded at $2.12, with a volume of 48606106 shares. The stock had previously closed at $2.20.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Citigroup cut their price target on Transocean from $4.50 to $3.50 and set a "neutral" rating on the stock in a research note on Wednesday, March 19th. TD Cowen decreased their target price on Transocean from $6.50 to $5.50 and set a "hold" rating for the company in a research note on Wednesday, January 8th. Evercore ISI lowered shares of Transocean from an "outperform" rating to an "in-line" rating and dropped their price target for the company from $6.00 to $5.00 in a research note on Wednesday, January 15th. Morgan Stanley reduced their price objective on shares of Transocean from $5.00 to $4.00 and set an "equal weight" rating for the company in a research report on Thursday, March 27th. Finally, Barclays dropped their target price 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. One analyst has rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the stock. According to MarketBeat, Transocean presently has a consensus rating of "Hold" and a consensus target price of $4.59.

Transocean Price Performance

The company has a debt-to-equity ratio of 0.60, a current ratio of 1.47 and a quick ratio of 1.34. The company has a 50 day moving average price of $2.71 and a 200 day moving average price of $3.56. The firm has a market cap of $1.87 billion, a PE ratio of -2.90, a PEG ratio of 0.86 and a beta of 2.29.

Transocean (NYSE:RIG - Get Free Report) last released its earnings results on Monday, April 28th. The offshore drilling services provider reported ($0.10) EPS for the quarter, topping the consensus estimate of ($0.12) by $0.02. Transocean had a negative net margin of 14.53% and a negative return on equity of 0.52%. The company had revenue of $906.00 million during the quarter, compared to analysts' expectations of $884.92 million. During the same quarter last year, the business earned ($0.03) EPS. The business's revenue was up 18.7% on a year-over-year basis. Sell-side analysts expect that Transocean Ltd. will post 0.14 EPS for the current fiscal year.

Insider Transactions at Transocean

In other news, EVP Roderick James Mackenzie sold 22,000 shares of the stock in a transaction dated Friday, April 11th. The shares were sold at an average price of $2.23, for a total value of $49,060.00. Following the completion of the transaction, the executive vice president now owns 362,841 shares in the company, valued at $809,135.43. This trade represents a 5.72 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 13.16% of the company's stock.

Institutional Investors Weigh In On Transocean

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Optiver Holding B.V. boosted its position 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 in the last quarter. Ballentine Partners LLC boosted its position in shares of Transocean by 19.4% in the 4th quarter. Ballentine Partners LLC now owns 18,247 shares of the offshore drilling services provider's stock worth $68,000 after buying an additional 2,963 shares in the last quarter. Van Den Berg Management I Inc. grew its stake in Transocean by 11.9% in the 4th quarter. Van Den Berg Management I Inc. now owns 28,155 shares of the offshore drilling services provider's stock valued at $106,000 after acquiring an additional 3,000 shares during the last quarter. Pallas Capital Advisors LLC increased its holdings in Transocean by 25.6% during the 4th quarter. Pallas Capital Advisors LLC now owns 15,332 shares of the offshore drilling services provider's stock valued at $57,000 after acquiring an additional 3,127 shares in the last quarter. Finally, Nomura Holdings Inc. raised its position 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 acquiring an additional 3,390 shares during the last quarter. 67.73% of the stock is currently owned by institutional investors and hedge funds.

Transocean Company Profile

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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