Transocean (NYSE:RIG) Trading Down 4.1% Following Analyst Downgrade

Transocean Ltd. (NYSE:RIG) shares dropped 4.1% during trading on Thursday after TD Cowen lowered their price target on the stock from $6.50 to $5.50. TD Cowen currently has a hold rating on the stock. Transocean traded as low as $3.93 and last traded at $3.99. Approximately 31,557,647 shares changed hands during trading, an increase of 18% from the average daily volume of 26,824,988 shares. The stock had previously closed at $4.16.

A number of other equities analysts have also recently commented on RIG. JPMorgan Chase & Co. raised Transocean from an “underweight” rating to a “neutral” rating and set a $5.00 price target for the company in a report on Friday, December 6th. Morgan Stanley increased their target price on shares of Transocean from $5.00 to $6.00 and gave the stock an “equal weight” rating in a report on Thursday, October 3rd. Citigroup cut shares of Transocean from a “buy” rating to a “neutral” rating in a research report on Thursday, September 12th. Benchmark restated a “hold” rating on shares of Transocean in a research report on Tuesday, December 3rd. Finally, Susquehanna lowered their price target on shares of Transocean from $7.00 to $6.50 and set a “positive” rating for the company in a report on Friday, November 1st. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, Transocean presently has a consensus rating of “Hold” and an average target price of $6.17.

Insider Activity

In other news, EVP Roderick James Mackenzie sold 20,000 shares of the firm’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $4.29, for a total transaction of $85,800.00. Following the completion of the transaction, the executive vice president now directly owns 310,857 shares in the company, valued at $1,333,576.53. This trade represents a 6.04 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 12.54% of the company’s stock.

Institutional Trading of Transocean

Institutional investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. lifted its position in shares of Transocean by 138.8% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,633 shares of the offshore drilling services provider’s stock worth $25,000 after purchasing an additional 2,693 shares during the period. Orion Portfolio Solutions LLC acquired a new position in Transocean in the third quarter valued at $46,000. Atria Investments Inc bought a new stake in Transocean during the third quarter valued at $51,000. Abel Hall LLC acquired a new stake in Transocean during the 3rd quarter worth about $65,000. Finally, Kovitz Investment Group Partners LLC raised its position in shares of Transocean by 34.0% in the 3rd quarter. Kovitz Investment Group Partners LLC now owns 15,877 shares of the offshore drilling services provider’s stock worth $62,000 after acquiring an additional 4,027 shares in the last quarter. 67.73% of the stock is currently owned by institutional investors.

Transocean Price Performance

The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.34 and a current ratio of 1.64. The business has a 50 day moving average price of $4.08 and a 200-day moving average price of $4.54. The company has a market capitalization of $3.49 billion, a price-to-earnings ratio of -5.32 and a beta of 2.73.

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.