Transocean (NYSE:RIG) Shares Gap Down – What’s Next?

Transocean Ltd. (NYSE:RIG)’s share price gapped down before the market opened on Monday . The stock had previously closed at $2.28, but opened at $2.20. Transocean shares last traded at $2.15, with a volume of 2,375,990 shares changing hands.

Analysts Set New Price Targets

RIG has been the subject of several recent analyst reports. Morgan Stanley decreased their price target on Transocean from $5.00 to $4.00 and set an “equal weight” rating for the company in a research note on Thursday, March 27th. Citigroup decreased their target price on shares of Transocean from $4.50 to $3.50 and set a “neutral” rating for the company in a research report on Wednesday, March 19th. Barclays dropped their price target on shares of Transocean from $4.00 to $3.50 and set an “overweight” rating on the stock in a research report on Monday, April 7th. TD Cowen decreased their price objective on shares of Transocean from $6.50 to $5.50 and set a “hold” rating for the company in a report on Wednesday, January 8th. Finally, SEB Equity Research set a $2.80 target price on Transocean in a report on Wednesday, March 5th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and three have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $4.59.

Transocean Trading Down 7.5 %

The firm has a 50 day moving average price of $2.92 and a two-hundred day moving average price of $3.67. The firm has a market capitalization of $1.86 billion, a P/E ratio of -2.89, a price-to-earnings-growth ratio of 0.86 and a beta of 2.29. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.34 and a current ratio of 1.47.

Transocean (NYSE:RIG) last posted its quarterly earnings data on Monday, February 17th. The offshore drilling services provider reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.11). The company had revenue of $952.00 million for the quarter, compared to analyst estimates of $962.28 million. Transocean had a negative return on equity of 0.52% and a negative net margin of 14.53%. On average, equities research analysts expect that Transocean Ltd. will post 0.14 EPS for the current fiscal year.

Insider Buying and Selling

In other news, EVP Roderick James Mackenzie sold 22,000 shares of the company’s stock in a transaction dated Friday, April 11th. The stock was sold at an average price of $2.23, for a total value of $49,060.00. Following the transaction, the executive vice president now owns 362,841 shares in the company, valued at $809,135.43. This represents a 5.72 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 13.16% of the company’s stock.

Hedge Funds Weigh In On Transocean

Hedge funds have recently modified their holdings of the stock. Twin Tree Management LP purchased a new position in Transocean in the fourth quarter valued at about $27,000. Optiver Holding B.V. lifted its stake in Transocean by 53.6% in the fourth quarter. Optiver Holding B.V. now owns 8,400 shares of the offshore drilling services provider’s stock valued at $32,000 after acquiring an additional 2,933 shares during the last quarter. Parallel Advisors LLC grew its position in Transocean by 154.8% in the first quarter. Parallel Advisors LLC now owns 8,810 shares of the offshore drilling services provider’s stock worth $28,000 after acquiring an additional 5,353 shares in the last quarter. Blue Trust Inc. lifted its position in shares of Transocean by 96.2% in the fourth quarter. Blue Trust Inc. now owns 9,841 shares of the offshore drilling services provider’s stock worth $37,000 after buying an additional 4,826 shares during the last quarter. Finally, Adero Partners LLC acquired a new position in Transocean during the fourth quarter valued at approximately $38,000. 67.73% of the stock is owned by institutional investors and hedge funds.

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.