Transocean (NYSE:RIG) Shares Down 6% – Should You Sell?

Transocean Ltd. (NYSE:RIG)’s stock price dropped 6% on Tuesday . The stock traded as low as $3.83 and last traded at $3.8350. Approximately 8,229,391 shares were traded during trading, a decline of 79% from the average daily volume of 38,377,723 shares. The stock had previously closed at $4.08.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on RIG. Citigroup increased their target price on Transocean from $4.25 to $4.50 and gave the stock a “neutral” rating in a research note on Thursday. Weiss Ratings reissued a “sell (d-)” rating on shares of Transocean in a research report on Wednesday, October 8th. JPMorgan Chase & Co. restated an “underweight” rating on shares of Transocean in a report on Wednesday, December 10th. Morgan Stanley set a $4.50 target price on shares of Transocean in a research note on Monday. Finally, Barclays lifted their price target on Transocean from $4.00 to $4.50 and gave the company an “overweight” rating in a research note on Wednesday, November 5th. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $4.48.

Transocean Stock Down 6.7%

The company has a debt-to-equity ratio of 0.60, a current ratio of 1.08 and a quick ratio of 0.91. The firm has a 50-day moving average of $3.90 and a 200 day moving average of $3.31. The stock has a market capitalization of $4.19 billion, a price-to-earnings ratio of -1.16 and a beta of 1.39.

Transocean (NYSE:RIG) last announced its quarterly earnings data on Wednesday, October 29th. The offshore drilling services provider reported $0.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.04 by $0.02. Transocean had a positive return on equity of 0.45% and a negative net margin of 75.71%.The company had revenue of ($1,894.00) million for the quarter, compared to analysts’ expectations of $1.01 billion. The business’s quarterly revenue was up 8.4% on a year-over-year basis. As a group, sell-side analysts forecast that Transocean Ltd. will post 0.14 earnings per share for the current fiscal year.

Insider Activity at Transocean

In other Transocean news, Director Perestroika bought 1,500,000 shares of Transocean stock in a transaction dated Monday, November 24th. The stock was bought at an average cost of $4.02 per share, for a total transaction of $6,030,000.00. Following the purchase, the director owned 96,574,894 shares of the company’s stock, valued at $388,231,073.88. The trade was a 1.58% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Keelan Adamson sold 57,968 shares of the company’s stock in a transaction on Friday, December 5th. The shares were sold at an average price of $4.50, for a total transaction of $260,856.00. Following the completion of the transaction, the chief executive officer owned 1,303,715 shares in the company, valued at approximately $5,866,717.50. This represents a 4.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders acquired 11,000,000 shares of company stock worth $36,460,000 and sold 726,148 shares worth $3,115,783. 12.54% of the stock is currently owned by company insiders.

Institutional Trading of Transocean

Institutional investors have recently bought and sold shares of the business. Mirabella Financial Services LLP bought a new stake in shares of Transocean during the 3rd quarter valued at approximately $2,802,000. Swiss Life Asset Management Ltd grew its stake in shares of Transocean by 59.2% during the third quarter. Swiss Life Asset Management Ltd now owns 33,083 shares of the offshore drilling services provider’s stock worth $103,000 after buying an additional 12,296 shares during the last quarter. Polar Asset Management Partners Inc. bought a new stake in shares of Transocean during the third quarter worth $3,978,000. Penn Capital Management Company LLC increased its holdings in shares of Transocean by 9.8% during the third quarter. Penn Capital Management Company LLC now owns 3,499,280 shares of the offshore drilling services provider’s stock worth $10,943,000 after buying an additional 313,224 shares in the last quarter. Finally, CIBC Bancorp USA Inc. bought a new position in shares of Transocean in the 3rd quarter valued at $704,000. 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.