Transocean Target of Unusually Large Options Trading (NYSE:RIG)

Key Points

• Transocean Ltd. experienced a significant increase in trading activity, with 32,680 call options acquired, representing an 81% rise from the typical volume of 18,064.
• Brokerage firm Barclays raised its price target for Transocean from $3.50 to $4.00, while the consensus target price currently stands at $4.26, reflecting an average "Hold" rating among analysts.
• Company insiders, including Director Frederik Wilhelm Mohn, have notably increased their stakes in Transocean, with Mohn purchasing 4,000,000 shares valued at $12.2 million, enhancing his ownership by 4.39%.

Transocean Ltd. (NYSE:RIG - Get Free Report) saw some unusual options trading on Thursday. Stock traders acquired 32,680 call options on the stock. This is an increase of approximately 81% compared to the typical daily volume of 18,064 call options.

Analysts Set New Price Targets

Several brokerages have commented on RIG. Wall Street Zen raised Transocean from a "sell" rating to a "hold" rating in a report on Sunday, August 10th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Transocean in a report on Wednesday, October 8th. Finally, Barclays lifted their target price on Transocean from $3.50 to $4.00 and gave the stock an "overweight" rating in a report on Wednesday, August 13th. Three analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $4.26.

Insider Buying and Selling at Transocean

In related news, Director Frederik Wilhelm Mohn bought 4,000,000 shares of the business's stock in a transaction on Friday, September 26th. The shares were purchased 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 represents a 4.39% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director (Cyprus) Ltd Perestroika bought 4,000,000 shares of the business's stock in a transaction 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 approximately $289,978,426.70. This trade represents a 4.39% increase in their position. The disclosure for this purchase can be found here. Company insiders own 12.27% of the company's stock.

Institutional Trading of Transocean

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Jump Financial LLC increased its position in Transocean by 156.2% in the 1st quarter. Jump Financial LLC now owns 1,489,600 shares of the offshore drilling services provider's stock valued at $4,722,000 after buying an additional 908,219 shares in the last quarter. Keybank National Association OH increased its position in Transocean by 14.2% in the 1st quarter. Keybank National Association OH now owns 13,480,351 shares of the offshore drilling services provider's stock valued at $42,733,000 after buying an additional 1,672,958 shares in the last quarter. Quantbot Technologies LP bought a new stake in Transocean in the 1st quarter valued at about $688,000. Lane Generational LLC increased its position in Transocean by 11.4% in the 1st quarter. Lane Generational LLC now owns 1,163,302 shares of the offshore drilling services provider's stock valued at $3,688,000 after buying an additional 118,673 shares in the last quarter. Finally, Teacher Retirement System of Texas bought a new stake in Transocean in the 1st quarter valued at about $380,000. 67.73% of the stock is owned by institutional investors.

Transocean Trading Up 9.2%

Shares of RIG stock traded up $0.32 during mid-day trading on Thursday, hitting $3.74. The company's stock had a trading volume of 72,489,351 shares, compared to its average volume of 37,801,457. The company's fifty day simple moving average is $3.20 and its 200-day simple moving average is $2.84. Transocean has a 52 week low of $1.97 and a 52 week high of $4.74. 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 has a market cap of $3.52 billion, a PE ratio of -2.00 and a beta of 2.68.

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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