Transocean (NYSE:RIG) Stock Price Down 1.9% on Analyst Downgrade

Transocean LTD (NYSE:RIG) shares were down 1.9% on Thursday after Citigroup lowered their price target on the stock from $6.70 to $4.90. Citigroup currently has a neutral rating on the stock. Transocean traded as low as $3.89 and last traded at $3.83, approximately 14,568,296 shares changed hands during trading. A decline of 35% from the average daily volume of 22,387,428 shares. The stock had previously closed at $3.90.

A number of other analysts also recently issued reports on the stock. Bank of America assumed coverage on shares of Transocean in a report on Monday, June 10th. They issued a “neutral” rating and a $6.50 price target on the stock. Royal Bank of Canada set a $17.00 price target on shares of Transocean and gave the company a “buy” rating in a report on Wednesday, July 31st. HSBC set a $12.00 price target on shares of Transocean and gave the company a “buy” rating in a report on Monday, July 15th. Piper Jaffray Companies set a $8.00 price target on shares of Transocean and gave the company a “hold” rating in a report on Wednesday, July 31st. Finally, Morgan Stanley set a $10.00 price target on shares of Transocean and gave the company a “buy” rating in a report on Monday, July 15th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and ten have assigned a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $12.29.

In other Transocean news, CAO Howard E. Davis bought 98,049 shares of Transocean stock in a transaction dated Friday, June 28th. The shares were purchased at an average cost of $6.35 per share, for a total transaction of $622,611.15. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Chad C. Deaton bought 25,000 shares of Transocean stock in a transaction dated Friday, August 2nd. The stock was acquired at an average price of $5.29 per share, for a total transaction of $132,250.00. Following the completion of the acquisition, the director now owns 24,800 shares in the company, valued at $131,192. The disclosure for this purchase can be found here. Over the last 90 days, insiders bought 130,849 shares of company stock worth $794,982. Insiders own 11.05% of the company’s stock.

Large investors have recently modified their holdings of the stock. Geode Capital Management LLC raised its position in shares of Transocean by 23.9% in the 4th quarter. Geode Capital Management LLC now owns 4,978,814 shares of the offshore drilling services provider’s stock worth $34,552,000 after acquiring an additional 959,861 shares in the last quarter. Gateway Investment Advisers LLC increased its position in Transocean by 16.0% in the 1st quarter. Gateway Investment Advisers LLC now owns 21,223 shares of the offshore drilling services provider’s stock valued at $185,000 after buying an additional 2,920 shares in the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in Transocean in the 1st quarter valued at about $70,000. Virtu Financial LLC increased its position in Transocean by 43.9% in the 1st quarter. Virtu Financial LLC now owns 100,830 shares of the offshore drilling services provider’s stock valued at $878,000 after buying an additional 30,744 shares in the last quarter. Finally, Louisiana State Employees Retirement System increased its position in Transocean by 1.0% in the 1st quarter. Louisiana State Employees Retirement System now owns 135,600 shares of the offshore drilling services provider’s stock valued at $1,181,000 after buying an additional 1,300 shares in the last quarter. Institutional investors own 70.39% of the company’s stock.

The stock has a market capitalization of $2.66 billion, a price-to-earnings ratio of -4.84 and a beta of 1.75. The business’s 50-day moving average price is $5.69. The company has a debt-to-equity ratio of 0.74, a current ratio of 2.88 and a quick ratio of 2.55.

Transocean (NYSE:RIG) last issued its earnings results on Monday, July 29th. The offshore drilling services provider reported ($0.34) EPS for the quarter, meeting analysts’ consensus estimates of ($0.34). Transocean had a negative return on equity of 4.18% and a negative net margin of 33.49%. The business had revenue of $758.00 million during the quarter, compared to analyst estimates of $765.81 million. During the same period in the previous year, the company posted ($0.04) EPS. The firm’s revenue was down 4.1% compared to the same quarter last year. As a group, analysts anticipate that Transocean LTD will post -1.02 earnings per share for the current fiscal year.

About Transocean (NYSE:RIG)

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. The company primarily offers drilling rigs, related equipment, and work crews; and ultra-deepwater and harsh environment drilling services. As of February 18, 2019, it owned or had partial ownership interests in, and operated 48 mobile offshore drilling units that consist of 31 ultra-deepwater floaters, 13 harsh environment floaters, and 4 midwater floaters.

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