Transocean (NYSE:RIG) Stock Passes Above 200 Day Moving Average - Here's Why

Key Points

• Shares passed above its 200-day moving average (200-day MA $4.94), trading as high as $6.05 and last at $6.0350 on volume of about 27.8 million shares.
• Analyst sentiment is mixed but cautious: the consensus rating is "Reduce" with a $6.79 consensus price target, after several downgrades while Morgan Stanley raised its target to $7 and kept an "equal weight" rating.
• Fundamentals: Transocean reported $0.02 EPS vs. $0.09 expected (a miss) and revenue of $1.04 billion (up 9.6% year‑over‑year), alongside a negative net margin of 73.52%.

Shares of Transocean Ltd. (NYSE:RIG - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $4.94 and traded as high as $6.05. Transocean shares last traded at $6.0350, with a volume of 27,836,733 shares traded.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Fearnley Fonds cut Transocean from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 10th. Pareto Securities cut Transocean from a "hold" rating to a "sell" rating and set a $5.25 price objective on the stock. in a research report on Tuesday, February 10th. Weiss Ratings reissued a "sell (d-)" rating on shares of Transocean in a research report on Thursday, January 22nd. Clarkson Capital cut Transocean from a "strong-buy" rating to a "hold" rating in a research report on Thursday, March 19th. Finally, Morgan Stanley boosted their price objective on Transocean from $5.00 to $7.00 and gave the stock an "equal weight" rating in a research report on Wednesday, April 15th. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $6.79.

Transocean Stock Performance

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 50-day simple moving average of $6.38 and a two-hundred day simple moving average of $4.94. The firm has a market cap of $6.68 billion, a PE ratio of -1.92 and a beta of 1.37.

Transocean (NYSE:RIG - Get Free Report) last issued its quarterly earnings results on Friday, February 20th. The offshore drilling services provider reported $0.02 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.07). Transocean had a negative net margin of 73.52% and a positive return on equity of 0.41%. The firm had revenue of $1.04 billion for the quarter, compared to analysts' expectations of $1.03 billion. During the same period in the prior year, the company earned ($0.09) EPS. The firm's quarterly revenue was up 9.6% on a year-over-year basis. As a group, equities research analysts forecast that Transocean Ltd. will post 0.19 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Keelan Adamson sold 58,687 shares of the company's stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $5.00, for a total transaction of $293,435.00. Following the transaction, the chief executive officer owned 1,222,182 shares of the company's stock, valued at $6,110,910. This represents a 4.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Roderick James Mackenzie sold 78,370 shares of the company's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $6.36, for a total value of $498,433.20. Following the transaction, the executive vice president directly owned 268,025 shares in the company, valued at $1,704,639. This represents a 22.62% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 159,903 shares of company stock worth $906,098 in the last ninety days. Insiders own 9.70% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. TD Waterhouse Canada Inc. lifted its position in shares of Transocean by 22,432.1% during the 4th quarter. TD Waterhouse Canada Inc. now owns 6,309 shares of the offshore drilling services provider's stock valued at $26,000 after buying an additional 6,281 shares during the last quarter. Josh Arnold Investment Consultant LLC bought a new stake in shares of Transocean during the 2nd quarter valued at $26,000. Flagship Harbor Advisors LLC bought a new stake in shares of Transocean during the 4th quarter valued at $27,000. Benedict Financial Advisors Inc. bought a new stake in shares of Transocean during the 3rd quarter valued at $31,000. Finally, Vestmark Advisory Solutions Inc. bought a new stake in shares of Transocean during the 3rd quarter valued at $31,000. Hedge funds and other institutional investors own 67.73% of the company's stock.

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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