Transocean (NYSE:RIG) Hits New 52-Week High – Should You Buy?

Transocean Ltd. (NYSE:RIG)’s share price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $4.46 and last traded at $4.4250, with a volume of 4008787 shares. The stock had previously closed at $4.41.

Wall Street Analyst Weigh In

A number of analysts have weighed in on RIG shares. Weiss Ratings restated a “sell (d-)” rating on shares of Transocean in a research report on Wednesday, October 8th. Wall Street Zen raised Transocean from a “sell” rating to a “hold” rating in a research report on Sunday, August 10th. Barclays increased their target price on shares of Transocean from $4.00 to $4.50 and gave the company an “overweight” rating in a research report on Wednesday, November 5th. Finally, Citigroup increased their price objective on Transocean from $3.50 to $4.25 and gave the company a “neutral” rating in a report on Friday, November 14th. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $4.39.

Transocean Price Performance

The stock has a market capitalization of $4.90 billion, a PE ratio of -1.36 and a beta of 2.65. The business’s 50-day moving average price is $3.68 and its 200 day moving average price is $3.17. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.99 and a current ratio of 1.26.

Transocean (NYSE:RIG) last posted its quarterly earnings data on Wednesday, October 29th. The offshore drilling services provider reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.02. The company had revenue of ($1,894.00) million during the quarter, compared to analyst estimates of $1.01 billion. Transocean had a positive return on equity of 0.43% and a negative net margin of 75.71%.The company’s quarterly revenue was up 8.4% compared to the same quarter last year. Research analysts forecast that Transocean Ltd. will post 0.14 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Perestroika purchased 1,500,000 shares of the firm’s stock in a transaction dated Monday, November 24th. The shares were purchased at an average price of $4.02 per share, with a total value of $6,030,000.00. Following the acquisition, the director directly owned 96,574,894 shares of the company’s stock, valued at approximately $388,231,073.88. This represents a 1.58% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director (Cyprus) Ltd Perestroika acquired 4,000,000 shares of the company’s stock in a transaction dated Friday, September 26th. The shares were bought at an average cost of $3.05 per share, with a total value of $12,200,000.00. Following the completion of the acquisition, the director directly owned 95,074,894 shares in the company, valued at $289,978,426.70. The trade was a 4.39% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased 11,000,000 shares of company stock valued at $36,460,000 in the last 90 days. 12.27% of the stock is owned by company insiders.

Institutional Investors Weigh In On Transocean

Hedge funds have recently added to or reduced their stakes in the company. Josh Arnold Investment Consultant LLC acquired a new position in shares of Transocean during the second quarter worth $26,000. Blume Capital Management Inc. raised its position in shares of Transocean by 125.9% in the 2nd quarter. Blume Capital Management Inc. now owns 10,560 shares of the offshore drilling services provider’s stock valued at $27,000 after purchasing an additional 5,885 shares in the last quarter. Blueshift Asset Management LLC acquired a new position in shares of Transocean in the 2nd quarter valued at approximately $27,000. Verum Partners LLC acquired a new position in Transocean during the 2nd quarter worth $28,000. Finally, Stockman Wealth Management Inc. acquired a new stake in shares of Transocean in the 2nd quarter valued at about $28,000. Institutional investors own 67.73% of the company’s stock.

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.