Transocean Target of Unusually Large Options Trading (NYSE:RIG)

Transocean Ltd. (NYSE:RIG) saw some unusual options trading activity on Monday. Traders acquired 131,365 put options on the stock. This represents an increase of 199% compared to the average volume of 43,915 put options.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Pareto Securities lowered Transocean from a “hold” rating to a “sell” rating and set a $5.25 price target on the stock. in a research note on Tuesday, February 10th. JPMorgan Chase & Co. reissued an “underweight” rating on shares of Transocean in a research report on Wednesday, December 10th. Susquehanna boosted their price objective on shares of Transocean from $6.50 to $7.50 and gave the company a “positive” rating in a report on Monday, February 23rd. Clarkson Capital cut shares of Transocean from a “strong-buy” rating to a “hold” rating in a research report on Thursday, March 19th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Transocean in a research note on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus target price of $6.38.

Transocean Stock Down 4.0%

NYSE:RIG opened at $6.65 on Tuesday. The company has a quick ratio of 1.27, a current ratio of 1.56 and a debt-to-equity ratio of 0.64. The stock’s fifty day moving average is $5.92 and its two-hundred day moving average is $4.59. Transocean has a 52 week low of $1.97 and a 52 week high of $7.14. The stock has a market capitalization of $7.36 billion, a price-to-earnings ratio of -2.11 and a beta of 1.40.

Transocean (NYSE:RIG) last issued its quarterly earnings data on Friday, February 20th. The offshore drilling services provider reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.07). The firm had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1.03 billion. Transocean had a negative net margin of 73.52% and a positive return on equity of 0.41%. The company’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.09) earnings per share. Research analysts anticipate that Transocean will post 0.14 EPS for the current year.

Insider Activity at Transocean

In other news, EVP Roderick James Mackenzie sold 78,370 shares of the firm’s stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $6.36, for a total transaction of $498,433.20. Following the completion of the sale, the executive vice president owned 268,025 shares in the company, valued at $1,704,639. This trade represents a 22.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Keelan Adamson sold 58,687 shares of Transocean stock in a transaction that occurred on Tuesday, January 27th. The shares were sold at an average price of $5.00, for a total transaction of $293,435.00. Following the sale, the chief executive officer directly owned 1,222,182 shares in the company, valued at approximately $6,110,910. The trade was a 4.58% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 159,903 shares of company stock valued at $906,098. Corporate insiders own 12.54% of the company’s stock.

Hedge Funds Weigh In On Transocean

Several institutional investors have recently bought and sold shares of RIG. Monashee Investment Management LLC purchased a new stake in Transocean during the 3rd quarter worth approximately $936,000. Citigroup Inc. lifted its holdings in Transocean by 37.5% during the 3rd quarter. Citigroup Inc. now owns 818,781 shares of the offshore drilling services provider’s stock worth $2,555,000 after buying an additional 223,231 shares in the last quarter. Trek Financial LLC purchased a new position in Transocean in the 3rd quarter valued at approximately $5,162,000. HighTower Advisors LLC boosted its position in Transocean by 2,662.3% in the 3rd quarter. HighTower Advisors LLC now owns 1,562,314 shares of the offshore drilling services provider’s stock valued at $4,874,000 after buying an additional 1,505,755 shares during the period. Finally, Ninepoint Partners LP acquired a new position in shares of Transocean in the third quarter worth $18,720,000. 67.73% of the stock is owned by institutional investors and hedge funds.

About Transocean

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.