Transocean (NYSE:RIG) Shares Up 12.7% - What's Next?

Key Points

• Transocean Ltd. shares surged by 12.7% to $3.86, significantly increasing trading volume to nearly 86 million shares compared to the average of 37.8 million.
• Analyst ratings for RIG have varied, with Barclays raising the price target to $4.00 and Weiss Ratings assigning a "sell (d-)" rating; overall, the stock holds a consensus "Hold" rating.
• Insider purchases have occurred, with a Director acquiring 4 million shares at $3.05 each, indicating confidence in the company's future prospects.

Transocean Ltd. (NYSE:RIG - Get Free Report)'s share price shot up 12.7% on Thursday . The stock traded as high as $3.81 and last traded at $3.86. 85,934,328 shares were traded during mid-day trading, an increase of 127% from the average session volume of 37,848,367 shares. The stock had previously closed at $3.42.

Analyst Ratings Changes

Several brokerages have weighed in on RIG. Barclays lifted their price objective on shares of Transocean from $3.50 to $4.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 13th. Weiss Ratings reissued a "sell (d-)" rating on shares of Transocean in a research note on Wednesday, October 8th. Finally, Wall Street Zen raised shares of Transocean from a "sell" rating to a "hold" rating in a research note on Sunday, August 10th. Three investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $4.26.

Transocean Stock Up 12.7%

The company has a market capitalization of $3.64 billion, a P/E ratio of -2.07 and a beta of 2.68. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.99 and a current ratio of 1.26. The firm's fifty day moving average is $3.20 and its 200-day moving average is $2.84.

Insider Activity at Transocean

In related news, Director (Cyprus) Ltd Perestroika purchased 4,000,000 shares of the firm's stock in a transaction that occurred on Friday, September 26th. The shares were bought at an average cost of $3.05 per share, with a total value of $12,200,000.00. Following the acquisition, the director owned 95,074,894 shares of the company's stock, valued at $289,978,426.70. This trade represents a 4.39% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Frederik Wilhelm Mohn purchased 4,000,000 shares of the firm's stock in a transaction that occurred on Friday, September 26th. The shares were bought at an average cost of $3.05 per share, for a total transaction of $12,200,000.00. Following the completion of the acquisition, the director directly owned 95,074,894 shares in the company, valued at $289,978,426.70. The trade was a 4.39% increase in their position. The disclosure for this purchase can be found here. Insiders own 12.27% of the company's stock.

Institutional Investors Weigh In On Transocean

A number of institutional investors have recently added to or reduced their stakes in RIG. Josh Arnold Investment Consultant LLC bought a new stake in Transocean during the 2nd quarter worth approximately $26,000. Blume Capital Management Inc. grew its holdings in Transocean by 125.9% during the 2nd quarter. Blume Capital Management Inc. now owns 10,560 shares of the offshore drilling services provider's stock worth $27,000 after acquiring an additional 5,885 shares during the last quarter. Blueshift Asset Management LLC bought a new stake in Transocean during the 2nd quarter worth approximately $27,000. Verum Partners LLC bought a new stake in Transocean during the 2nd quarter worth approximately $28,000. Finally, Stockman Wealth Management Inc. bought a new stake in Transocean during the 2nd quarter worth approximately $28,000. 67.73% of the stock is owned by 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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