Transocean (NYSE:RIG) Trading Up 5.8% - Here's What Happened

Transocean Ltd. (NYSE:RIG - Get Free Report) shares rose 5.8% on Tuesday . The stock traded as high as $3.00 and last traded at $3.04. Approximately 4,983,381 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 27,242,017 shares. The stock had previously closed at $2.87.

Analysts Set New Price Targets

RIG has been the subject of several research analyst reports. BTIG Research set a $5.00 price target on shares of Transocean and gave the company a "buy" rating in a research note on Monday, May 5th. Barclays decreased their price target on shares of Transocean from $4.00 to $3.50 and set an "overweight" rating for the company in a research note on Monday, April 7th. Morgan Stanley decreased their price target on shares of Transocean from $4.00 to $3.50 and set an "equal weight" rating for the company in a research note on Friday, May 16th. Susquehanna decreased their price target on shares of Transocean from $5.00 to $4.00 and set a "positive" rating for the company in a research note on Monday, April 14th. Finally, Citigroup decreased their price target on shares of Transocean from $4.50 to $3.50 and set a "neutral" rating for the company in a research note on Wednesday, March 19th. 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 company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $4.58.

Transocean Price Performance

The stock has a market capitalization of $2.82 billion, a price-to-earnings ratio of -4.38, a PEG ratio of 0.86 and a beta of 2.54. The business's fifty day moving average price is $2.46 and its 200-day moving average price is $3.21. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.47 and a quick ratio of 1.34.

Transocean (NYSE:RIG - Get Free Report) last released its quarterly earnings results on Monday, April 28th. The offshore drilling services provider reported ($0.10) earnings per share for the quarter, topping the consensus estimate of ($0.12) by $0.02. Transocean had a negative net margin of 14.53% and a negative return on equity of 0.52%. The business had revenue of $906.00 million for the quarter, compared to analysts' expectations of $884.92 million. During the same period in the previous year, the company earned ($0.03) earnings per share. The firm's revenue for the quarter was up 18.7% compared to the same quarter last year. On average, research analysts forecast that Transocean Ltd. will post 0.14 EPS for the current year.

Insider Buying and Selling

In related news, EVP Roderick James Mackenzie sold 22,000 shares of the business's stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $2.78, for a total transaction of $61,160.00. Following the transaction, the executive vice president now directly owns 340,841 shares in the company, valued at approximately $947,537.98. The trade was a 6.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 12.27% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Twin Tree Management LP purchased a new position in Transocean in the fourth quarter valued at about $27,000. Optiver Holding B.V. boosted its stake in Transocean by 53.6% in the fourth quarter. Optiver Holding B.V. now owns 8,400 shares of the offshore drilling services provider's stock valued at $32,000 after acquiring an additional 2,933 shares during the last quarter. Parallel Advisors LLC boosted its stake in Transocean by 154.8% in the first quarter. Parallel Advisors LLC now owns 8,810 shares of the offshore drilling services provider's stock valued at $28,000 after acquiring an additional 5,353 shares during the last quarter. Townsend & Associates Inc purchased a new position in Transocean in the first quarter valued at about $32,000. Finally, Costello Asset Management INC purchased a new position in Transocean in the first quarter valued at about $32,000. 67.73% of the stock is currently owned by hedge funds and other 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.