Transocean (NYSE:RIG) Reaches New 1-Year Low After Earnings Miss

Transocean Ltd. (NYSE:RIG) hit a new 52-week low on Tuesday following a dissappointing earnings announcement. The company traded as low as $3.38 and last traded at $3.54, with a volume of 4262733 shares trading hands. The stock had previously closed at $3.53.

The offshore drilling services provider reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.11). The business had revenue of $952.00 million during the quarter, compared to analyst estimates of $962.28 million. Transocean had a negative return on equity of 0.51% and a negative net margin of 14.53%.

Analyst Upgrades and Downgrades

Several research firms recently commented on RIG. Barclays upgraded shares of Transocean from an “equal weight” rating to an “overweight” rating and set a $4.50 price target on the stock in a research report on Wednesday, December 18th. TD Cowen dropped their target price on shares of Transocean from $6.50 to $5.50 and set a “hold” rating on the stock in a research report on Wednesday, January 8th. Susquehanna dropped their target price on shares of Transocean from $7.00 to $6.50 and set a “positive” rating on the stock in a research report on Friday, November 1st. Benchmark reiterated a “hold” rating on shares of Transocean in a research report on Tuesday, December 3rd. Finally, JPMorgan Chase & Co. upgraded shares of Transocean from an “underweight” rating to a “neutral” rating and set a $5.00 target price on the stock in a research report on Friday, December 6th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $5.94.

Insider Transactions at Transocean

In other news, EVP Roderick James Mackenzie sold 22,000 shares of the firm’s stock in a transaction dated Tuesday, February 11th. The shares were sold at an average price of $3.85, for a total value of $84,700.00. Following the transaction, the executive vice president now directly owns 313,072 shares of the company’s stock, valued at approximately $1,205,327.20. This trade represents a 6.57 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Insiders own 13.16% of the company’s stock.

Hedge Funds Weigh In On Transocean

Institutional investors have recently bought and sold shares of the company. Twin Tree Management LP purchased a new position in Transocean during the fourth quarter worth about $27,000. Optiver Holding B.V. raised its stake in Transocean by 53.6% during the fourth quarter. Optiver Holding B.V. now owns 8,400 shares of the offshore drilling services provider’s stock worth $32,000 after purchasing an additional 2,933 shares during the period. Blue Trust Inc. raised its stake in Transocean by 96.2% during the fourth quarter. Blue Trust Inc. now owns 9,841 shares of the offshore drilling services provider’s stock worth $37,000 after purchasing an additional 4,826 shares during the period. Adero Partners LLC purchased a new position in Transocean during the fourth quarter worth about $38,000. Finally, Stratos Wealth Partners LTD. purchased a new position in Transocean during the fourth quarter worth about $40,000. 67.73% of the stock is owned by hedge funds and other institutional investors.

Transocean Stock Up 3.6 %

The company has a debt-to-equity ratio of 0.64, a current ratio of 1.64 and a quick ratio of 1.34. The business’s 50 day simple moving average is $3.80 and its 200 day simple moving average is $4.23. The company has a market capitalization of $3.12 billion, a PE ratio of -4.88, a P/E/G ratio of 0.85 and a beta of 2.70.

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.