Transocean (NYSE:RIG) Trading 7.2% Higher - Time to Buy?

Transocean Ltd. (NYSE:RIG - Get Free Report) shares rose 7.2% on Tuesday . The stock traded as high as $2.91 and last traded at $2.91. Approximately 16,821,396 shares changed hands during mid-day trading, a decline of 56% from the average daily volume of 37,941,168 shares. The stock had previously closed at $2.71.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on RIG shares. Susquehanna lowered their price target on Transocean from $5.00 to $4.00 and set a "positive" rating for the company in a research report on Monday, April 14th. Citigroup reduced their price objective on Transocean from $4.50 to $3.50 and set a "neutral" rating on the stock in a research note on Wednesday, March 19th. Barclays dropped their target price on shares of Transocean from $4.00 to $3.50 and set an "overweight" rating for the company in a research report on Monday, April 7th. Morgan Stanley reduced their price target on shares of Transocean from $4.00 to $3.50 and set an "equal weight" rating on the stock in a research report on Friday, May 16th. Finally, BTIG Research set a $5.00 price objective on shares of Transocean and gave the stock a "buy" rating in a research report on Monday, May 5th. One investment 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. Based on data from MarketBeat.com, Transocean has an average rating of "Hold" and a consensus price target of $4.58.

Transocean Price Performance

The business's 50 day moving average price is $2.72 and its 200-day moving average price is $3.05. The company has a quick ratio of 1.06, a current ratio of 1.33 and a debt-to-equity ratio of 0.58. The company has a market cap of $2.52 billion, a PE ratio of -3.00, a price-to-earnings-growth ratio of 1.89 and a beta of 2.50.

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 (EPS) for the quarter, topping the consensus estimate of ($0.12) by $0.02. The firm had revenue of $906.00 million for the quarter, compared to the consensus estimate of $884.92 million. Transocean had a negative net margin of 18.79% and a negative return on equity of 0.94%. The firm's quarterly revenue was up 18.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.03) EPS. As a group, analysts forecast that Transocean Ltd. will post 0.14 earnings per share for the current year.

Insider Activity at Transocean

In other Transocean news, EVP Roderick James Mackenzie sold 22,000 shares of the firm's stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $2.78, for a total transaction of $61,160.00. Following the completion of the sale, the executive vice president owned 340,841 shares in the company, valued at $947,537.98. This trade represents a 6.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 12.27% of the company's stock.

Institutional Investors Weigh In On Transocean

A number of institutional investors have recently modified their holdings of RIG. American Century Companies Inc. raised its position in shares of Transocean by 51.5% during the 4th quarter. American Century Companies Inc. now owns 19,257,437 shares of the offshore drilling services provider's stock valued at $72,215,000 after acquiring an additional 6,542,271 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Transocean by 88.9% during 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 purchasing an additional 5,719,637 shares during the last quarter. Renaissance Technologies LLC acquired a new stake in shares of Transocean during the fourth quarter worth $16,608,000. SIR Capital Management L.P. bought a new position in shares of Transocean in the 4th quarter worth about $14,976,000. Finally, Madison Investment Advisors LLC acquired a new position in shares of Transocean in the 4th quarter valued at about $11,156,000. Institutional investors and hedge funds own 67.73% of the company's stock.

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.