Transocean (NYSE:RIG) Stock Price Down 4.8% - Here's Why

Key Points

• Transocean's stock fell 4.8% during trading, reaching a low of $3.30, with volume decreasing by 50% compared to its average daily trading volume.
• Barclays has raised its price target for Transocean from $3.50 to $4.00, now rating the stock as "overweight," amidst a consensus rating of "Hold" and a target price of $4.26.
• Institutional investors significantly increased their holdings, with Goldman Sachs raising its stake by 88.9% in the first quarter and several others making substantial acquisitions in the second quarter.

Transocean Ltd. (NYSE:RIG - Get Free Report)'s stock price was down 4.8% during trading on Friday . The company traded as low as $3.30 and last traded at $3.30. Approximately 17,189,245 shares traded hands during trading, a decline of 50% from the average daily volume of 34,662,652 shares. The stock had previously closed at $3.46.

Analyst Ratings Changes

RIG has been the topic of a number of recent research reports. Barclays increased their price objective on shares of Transocean from $3.50 to $4.00 and gave the company an "overweight" rating in a research note on Wednesday, August 13th. Wall Street Zen upgraded shares of Transocean from a "sell" rating to a "hold" rating in a report on Sunday, August 10th. Three research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $4.26.

Transocean Price Performance

The company has a market capitalization of $3.14 billion, a PE ratio of -1.79, a P/E/G ratio of 6.54 and a beta of 2.79. 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 company's 50-day simple moving average is $3.00 and its 200-day simple moving average is $2.80.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in RIG. Goldman Sachs Group Inc. raised its holdings 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 valued at $38,521,000 after acquiring an additional 5,719,637 shares in the last quarter. Jump Financial LLC lifted its holdings in Transocean by 288.1% in the 2nd quarter. Jump Financial LLC now owns 5,780,571 shares of the offshore drilling services provider's stock valued at $14,972,000 after acquiring an additional 4,290,971 shares during the last quarter. Paloma Partners Management Co lifted its stake in Transocean by 288.9% during the second quarter. Paloma Partners Management Co now owns 4,200,000 shares of the offshore drilling services provider's stock valued at $10,878,000 after buying an additional 3,120,000 shares in the last quarter. Nuveen LLC purchased a new stake in shares of Transocean in the first quarter worth approximately $7,774,000. Finally, Cubist Systematic Strategies LLC increased its holdings in Transocean by 89.2% in the second quarter. Cubist Systematic Strategies LLC now owns 4,589,083 shares of the offshore drilling services provider's stock worth $11,886,000 after buying an additional 2,164,158 shares during the last quarter. 67.73% of the stock is owned by institutional investors and hedge funds.

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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