Transocean (NYSE:RIG) Shares Gap Down – Time to Sell?

Transocean Ltd. (NYSE:RIG)’s share price gapped down prior to trading on Monday . The stock had previously closed at $4.14, but opened at $4.00. Transocean shares last traded at $4.04, with a volume of 2,494,733 shares traded.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on RIG shares. Barclays reduced their price target on Transocean from $6.00 to $4.50 and set an “equal weight” rating for the company in a research report on Wednesday, October 23rd. DNB Markets upgraded Transocean from a “hold” rating to a “buy” rating in a research report on Tuesday, September 3rd. Citigroup lowered shares of Transocean from a “buy” rating to a “neutral” rating in a research report on Thursday, September 12th. StockNews.com upgraded shares of Transocean to a “sell” rating in a research note on Thursday, October 10th. Finally, Benchmark lowered shares of Transocean from a “buy” rating to a “hold” rating in a research report on Tuesday, October 15th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat.com, Transocean currently has an average rating of “Hold” and an average price target of $6.69.

Transocean Stock Down 2.9 %

The company has a debt-to-equity ratio of 0.63, a current ratio of 1.36 and a quick ratio of 1.08. The firm’s 50-day moving average is $4.43 and its 200-day moving average is $5.14.

Transocean (NYSE:RIG) last announced its quarterly earnings data on Wednesday, July 31st. The offshore drilling services provider reported ($0.15) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.07). The firm had revenue of $861.00 million for the quarter, compared to the consensus estimate of $862.25 million. Transocean had a negative net margin of 11.34% and a negative return on equity of 4.76%. Transocean’s revenue for the quarter was up 18.1% compared to the same quarter last year. During the same quarter last year, the company posted ($0.15) earnings per share. Sell-side analysts predict that Transocean Ltd. will post -0.18 EPS for the current year.

Insiders Place Their Bets

In other Transocean news, Director Perestroika acquired 1,500,000 shares of the business’s stock in a transaction dated Thursday, September 12th. The stock was bought at an average price of $4.13 per share, with a total value of $6,195,000.00. Following the purchase, the director now owns 91,074,894 shares of the company’s stock, valued at approximately $376,139,312.22. This trade represents a 0.00 % increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In other news, Director (Cyprus) Ltd Perestroika purchased 2,000,000 shares of the stock in a transaction that occurred on Friday, August 2nd. The stock was bought at an average cost of $5.23 per share, for a total transaction of $10,460,000.00. Following the acquisition, the director now directly owns 89,574,894 shares of the company’s stock, valued at $468,476,695.62. This represents a 0.00 % increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Perestroika purchased 1,500,000 shares of the business’s stock in a transaction on Thursday, September 12th. The stock was purchased at an average cost of $4.13 per share, for a total transaction of $6,195,000.00. Following the acquisition, the director now owns 91,074,894 shares in the company, valued at approximately $376,139,312.22. The trade was a 0.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 12.54% of the company’s stock.

Institutional Trading of Transocean

A number of institutional investors have recently modified their holdings of RIG. Northwestern Mutual Wealth Management Co. raised its position in Transocean by 138.8% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,633 shares of the offshore drilling services provider’s stock valued at $25,000 after purchasing an additional 2,693 shares during the last quarter. Nisa Investment Advisors LLC bought a new position in shares of Transocean during the second quarter valued at approximately $30,000. Fiducient Advisors LLC purchased a new stake in Transocean in the first quarter worth $63,000. SG Americas Securities LLC bought a new stake in Transocean in the second quarter valued at $64,000. Finally, CWM LLC increased its position in Transocean by 36.1% during the 3rd quarter. CWM LLC now owns 17,065 shares of the offshore drilling services provider’s stock valued at $73,000 after purchasing an additional 4,529 shares during the period. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

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.