Transocean (NYSE:RIG) Releases Earnings Results, Misses Estimates By $0.10 EPS

Key Points

• Transocean reported EPS of ($0.03), missing the consensus estimate of $0.07 by $0.10 and showing a negative net margin of 73.52% with a 0.41% return on equity.
• Shares traded at $6.85 (one‑year range $2.27–$7.14) with a market cap of $7.58B; analysts carry a consensus rating of "Reduce" and an average target price of $6.79.
• EVP Roderick Mackenzie sold 78,370 shares, while institutional investors now own 67.73% of the company after large stake increases by Barclays, Dimensional, Renaissance and Goldman Sachs.

Transocean (NYSE:RIG - Get Free Report) posted its quarterly earnings data on Monday. The offshore drilling services provider reported ($0.03) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.10), FiscalAI reports. Transocean had a negative net margin of 73.52% and a positive return on equity of 0.41%.

Transocean Stock Performance

Transocean stock traded up $0.01 on Monday, hitting $6.85. The company's stock had a trading volume of 34,159,549 shares, compared to its average volume of 42,788,863. Transocean has a one year low of $2.27 and a one year high of $7.14. The firm has a market cap of $7.58 billion, a P/E ratio of -2.17 and a beta of 1.34. The company has a quick ratio of 1.27, a current ratio of 1.56 and a debt-to-equity ratio of 0.64. The company has a fifty day moving average price of $6.41 and a 200-day moving average price of $5.09.

Insider Activity at Transocean

In other news, EVP Roderick James Mackenzie sold 78,370 shares of Transocean stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $6.36, for a total transaction of $498,433.20. Following the sale, the executive vice president directly owned 268,025 shares in the company, valued at approximately $1,704,639. The trade was a 22.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 9.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Zimmer Partners LP acquired a new stake in Transocean during the third quarter valued at approximately $30,262,000. Barclays PLC raised its holdings in shares of Transocean by 230.6% in the 4th quarter. Barclays PLC now owns 10,802,664 shares of the offshore drilling services provider's stock worth $44,615,000 after buying an additional 7,535,041 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Transocean by 20.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 43,470,312 shares of the offshore drilling services provider's stock worth $179,531,000 after buying an additional 7,516,589 shares during the period. Renaissance Technologies LLC boosted its stake in Transocean by 416.8% in the 4th quarter. Renaissance Technologies LLC now owns 9,035,328 shares of the offshore drilling services provider's stock valued at $37,316,000 after buying an additional 7,287,083 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its stake in Transocean by 88.9% in the 1st 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 buying an additional 5,719,637 shares in the last quarter. Institutional investors own 67.73% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently commented on RIG shares. Fearnley Fonds cut shares of Transocean from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 10th. Clarkson Capital downgraded shares of Transocean from a "strong-buy" rating to a "hold" rating in a report on Thursday, March 19th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Transocean in a research report on Tuesday, April 21st. BTIG Research lifted their target price on Transocean from $6.00 to $10.00 and gave the stock a "buy" rating in a research report on Monday, February 9th. Finally, Barclays lowered Transocean from an "overweight" rating to an "equal weight" rating and boosted their price target for the company from $4.50 to $6.00 in a research note on Wednesday, February 18th. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Transocean currently has a consensus rating of "Reduce" and an average target price of $6.79.

Transocean Company Profile

Transocean Ltd. is a leading international provider of offshore contract drilling services for the oil and gas industry. The company specializes in the operation of mobile drilling units, including ultra-deepwater drillships, semisubmersible rigs and high-specification jackup rigs. Transocean's fleet is designed to meet complex drilling requirements, from ultra-deepwater well construction to shelf exploration and development projects.

The company's core services encompass the full spectrum of offshore drilling operations, including project and engineering management, marine operations, drilling supervision, and maintenance support.

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