Transocean (NYSE:RIG) Issues Quarterly Earnings Results

Key Points

• Transocean (NYSE:RIG) reported a quarterly earnings per share of ($1.06), missing estimates by $1.05, alongside a negative net margin of 18.79%.
• Shares of Transocean fell by 0.5% to $2.81 during trading, with analysts setting revised price targets ranging from $3.50 to $4.00.
• Institutional investors own 67.73% of Transocean's stock, with Goldman Sachs increasing its holdings by 88.9% in the first quarter.

Transocean (NYSE:RIG - Get Free Report) posted its quarterly earnings data on Monday. The offshore drilling services provider reported ($1.06) EPS for the quarter, missing the consensus estimate of ($0.01) by ($1.05), Briefing.com reports. The company had revenue of $988.00 million during the quarter, compared to the consensus estimate of $972.37 million. Transocean had a negative net margin of 39.64% and a positive return on equity of 0.45%. The company's revenue was up 14.8% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.15) earnings per share.

Transocean Stock Performance

Shares of NYSE:RIG traded up $0.10 on Friday, hitting $3.05. The company had a trading volume of 9,131,816 shares, compared to its average volume of 36,867,313. The stock has a market cap of $2.69 billion, a price-to-earnings ratio of -1.64, a P/E/G ratio of 6.48 and a beta of 2.52. The stock has a 50 day moving average price of $2.85 and a 200 day moving average price of $2.90. Transocean has a 1-year low of $1.97 and a 1-year high of $5.32. The company has a current ratio of 1.26, a quick ratio of 1.06 and a debt-to-equity ratio of 0.63.

Insider Activity

In related news, EVP Roderick James Mackenzie sold 22,000 shares of the company'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 transaction, the executive vice president owned 340,841 shares in the company, valued at approximately $947,537.98. This represents a 6.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 12.27% of the company's stock.

Hedge Funds Weigh In On Transocean

Several institutional investors and hedge funds have recently made changes to their positions in the company. Integrated Wealth Concepts LLC boosted its stake in Transocean by 12.1% in the 1st quarter. Integrated Wealth Concepts LLC now owns 69,637 shares of the offshore drilling services provider's stock valued at $221,000 after purchasing an additional 7,520 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Transocean by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 434,031 shares of the offshore drilling services provider's stock valued at $1,376,000 after acquiring an additional 18,957 shares during the period. Finally, Goldman Sachs Group Inc. grew its stake in shares of Transocean by 88.9% in the first quarter. Goldman Sachs Group Inc. now owns 12,151,817 shares of the offshore drilling services provider's stock valued at $38,521,000 after acquiring an additional 5,719,637 shares in the last quarter. Institutional investors and hedge funds own 67.73% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on RIG. Wall Street Zen lowered Transocean from a "hold" rating to a "sell" rating in a research report on Saturday, August 2nd. BTIG Research set a $5.00 target price on shares of Transocean and gave the company a "buy" rating in a research report on Monday, May 5th. Susquehanna cut 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. Finally, Morgan Stanley decreased their price objective on Transocean from $4.00 to $3.50 and set an "equal weight" rating for the company in a report on Friday, May 16th. One analyst has rated the stock with a sell rating, six have issued a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $4.20.

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.