Investors Buy Large Volume of Transocean Call Options (NYSE:RIG)

Transocean Ltd. (NYSE:RIG) saw some unusual options trading activity on Wednesday. Stock investors purchased 48,558 call options on the stock. This is an increase of 51% compared to the typical daily volume of 32,187 call options.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Citigroup increased their price target on shares of Transocean from $4.25 to $4.50 and gave the company a “neutral” rating in a research report on Thursday, December 11th. Barclays boosted their price objective on shares of Transocean from $4.00 to $4.50 and gave the stock an “overweight” rating in a research note on Wednesday, November 5th. JPMorgan Chase & Co. restated an “underweight” rating on shares of Transocean in a research note on Wednesday, December 10th. Susquehanna lifted their price target on shares of Transocean from $4.50 to $5.00 and gave the stock a “positive” rating in a report on Wednesday, January 7th. Finally, Morgan Stanley set a $4.50 price target on Transocean in a research report on Monday, December 15th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Transocean currently has an average rating of “Hold” and an average price target of $4.38.

Transocean Stock Up 7.6%

RIG stock opened at $4.63 on Thursday. The company has a quick ratio of 0.91, a current ratio of 1.08 and a debt-to-equity ratio of 0.60. Transocean has a 52 week low of $1.97 and a 52 week high of $4.72. The stock has a market capitalization of $5.09 billion, a PE ratio of -1.41 and a beta of 1.36. The firm has a 50 day moving average of $4.19 and a 200 day moving average of $3.56.

Transocean (NYSE:RIG) last posted its quarterly earnings data on Wednesday, October 29th. The offshore drilling services provider reported $0.06 EPS for the quarter, topping the consensus estimate of $0.04 by $0.02. Transocean had a negative net margin of 75.71% and a positive return on equity of 0.45%. The business had revenue of ($1,894.00) million during the quarter, compared to the consensus estimate of $1.01 billion. The firm’s revenue was up 8.4% compared to the same quarter last year. Sell-side analysts forecast that Transocean will post 0.14 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Perestroika purchased 1,500,000 shares of Transocean stock in a transaction dated Monday, November 24th. The stock was purchased at an average cost of $4.02 per share, with a total value of $6,030,000.00. Following the transaction, the director owned 96,574,894 shares in the company, valued at approximately $388,231,073.88. The trade was a 1.58% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Roderick James Mackenzie sold 53,769 shares of the company’s stock in a transaction on Friday, October 31st. The stock was sold at an average price of $3.86, for a total value of $207,548.34. Following the sale, the executive vice president owned 247,072 shares of the company’s stock, valued at $953,697.92. This trade represents a 17.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 726,148 shares of company stock valued at $3,115,783 over the last ninety days. Company insiders own 12.27% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Flagship Harbor Advisors LLC purchased a new stake in Transocean in the fourth quarter valued at approximately $27,000. Benedict Financial Advisors Inc. acquired a new stake in Transocean during the 3rd quarter valued at approximately $31,000. Vestmark Advisory Solutions Inc. purchased a new stake in shares of Transocean in the 3rd quarter valued at $31,000. Josh Arnold Investment Consultant LLC purchased a new position in shares of Transocean during the second quarter worth $26,000. Finally, Elevation Point Wealth Partners LLC acquired a new position in Transocean during the third quarter valued at $31,000. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

Transocean Company Profile

Transocean Ltd. is a leading international provider of offshore contract drilling services for the oil and gas industry. The company specializes in the operation of mobile drilling units, including ultra-deepwater drillships, semisubmersible rigs and high-specification jackup rigs. Transocean’s fleet is designed to meet complex drilling requirements, from ultra-deepwater well construction to shelf exploration and development projects.

The company’s core services encompass the full spectrum of offshore drilling operations, including project and engineering management, marine operations, drilling supervision, and maintenance support.