Citigroup Has Lowered Expectations for Transocean (NYSE:RIG) Stock Price

Transocean (NYSE:RIG) had its price objective reduced by equities researchers at Citigroup from $4.50 to $3.50 in a research report issued on Wednesday,Benzinga reports. The firm currently has a “neutral” rating on the offshore drilling services provider’s stock. Citigroup’s price target points to a potential upside of 8.19% from the stock’s previous close.

A number of other research firms have also issued reports on RIG. Barclays decreased their price objective on Transocean from $4.50 to $4.00 and set an “overweight” rating on the stock in a research note on Tuesday, February 25th. TD Cowen decreased their price objective on Transocean from $6.50 to $5.50 and set a “hold” rating on the stock in a research note on Wednesday, January 8th. SEB Equity Research set a $2.80 price objective on Transocean in a research note on Wednesday, March 5th. Benchmark reiterated a “hold” rating on shares of Transocean in a research note on Tuesday, December 3rd. Finally, JPMorgan Chase & Co. upgraded Transocean from an “underweight” rating to a “neutral” rating and set a $5.00 price objective on the stock in a research note on Friday, December 6th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $5.23.

Transocean Stock Performance

Shares of RIG opened at $3.24 on Wednesday. The firm has a market cap of $2.84 billion, a PE ratio of -4.43, a PEG ratio of 0.86 and a beta of 2.72. The stock’s fifty day moving average price is $3.51 and its two-hundred day moving average price is $3.94. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.47 and a quick ratio of 1.34. Transocean has a 1 year low of $2.55 and a 1 year high of $6.88.

Transocean (NYSE:RIG) last issued its earnings results 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 firm had revenue of $952.00 million during the quarter, compared to the consensus estimate of $962.28 million. Transocean had a negative net margin of 14.53% and a negative return on equity of 0.52%. On average, equities research analysts forecast that Transocean will post 0.14 EPS for the current 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, January 10th. The stock was sold at an average price of $4.05, for a total value of $89,100.00. Following the completion of the transaction, the executive vice president now directly owns 229,596 shares in the company, valued at approximately $929,863.80. This represents a 8.74 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 13.16% of the stock is owned by company insiders.

Hedge Funds Weigh In On Transocean

A number of hedge funds and other institutional investors have recently modified their holdings of RIG. Twin Tree Management LP purchased a new stake in Transocean during the 4th quarter valued at about $27,000. Optiver Holding B.V. boosted its holdings in Transocean by 53.6% during the 4th 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 period. Blue Trust Inc. boosted its holdings in Transocean by 96.2% during the 4th quarter. Blue Trust Inc. now owns 9,841 shares of the offshore drilling services provider’s stock valued at $37,000 after acquiring an additional 4,826 shares during the period. Adero Partners LLC purchased a new stake in Transocean during the 4th quarter valued at about $38,000. Finally, Stratos Wealth Partners LTD. purchased a new stake in Transocean during the 4th quarter valued at about $40,000. 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.