Transocean (NYSE:RIG) Issues Quarterly Earnings Results, Misses Estimates By $1.05 EPS

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 results on Monday. The offshore drilling services provider reported ($1.06) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($1.05), Briefing.com reports. Transocean had a negative net margin of 18.79% and a negative return on equity of 0.94%. The business's revenue was up 14.8% on a year-over-year basis. During the same period in the previous year, the company posted ($0.15) EPS.

Transocean Stock Down 0.5%

Shares of Transocean stock traded down $0.02 during trading hours on Monday, hitting $2.81. 21,697,980 shares of the company's stock traded hands, compared to its average volume of 32,199,420. The stock has a 50 day simple moving average of $2.82 and a 200-day simple moving average of $2.92. 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 company has a market cap of $2.48 billion, a PE ratio of -2.95, a PEG ratio of 5.43 and a beta of 2.52. Transocean has a twelve month low of $1.97 and a twelve month high of $5.32.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on RIG shares. Susquehanna lowered their price target on 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 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 downgraded Transocean from a "hold" rating to a "sell" rating in a research report on Saturday. Morgan Stanley decreased their target price on Transocean from $4.00 to $3.50 and set an "equal weight" rating on the stock in a research report on Friday, May 16th. Finally, BTIG Research set a $5.00 target price on Transocean and gave the company a "buy" rating in a research report on Monday, May 5th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $4.20.

Insider Buying and Selling at Transocean

In related news, EVP Roderick James Mackenzie sold 22,000 shares of Transocean stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $2.78, for a total value of $61,160.00. Following the completion of the transaction, the executive vice president directly owned 340,841 shares in the company, valued at approximately $947,537.98. This trade represents a 6.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 12.54% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Transocean

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

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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