Morgan Stanley Lowers Transocean (NYSE:RIG) Price Target to $5.00

by · The Markets Daily

Transocean (NYSE:RIG – Free Report) had its price objective lowered by Morgan Stanley from $7.00 to $5.00 in a report issued on Monday morning, Benzinga reports. Morgan Stanley currently has an equal weight rating on the offshore drilling services provider’s stock.

A number of other brokerages have also recently commented on RIG. StockNews.com raised shares of Transocean to a sell rating in a research note on Monday, August 5th. Citigroup cut shares of Transocean from a buy rating to a neutral rating in a research note on Thursday, September 12th. DNB Markets raised shares of Transocean from a hold rating to a buy rating in a research note on Tuesday, September 3rd. Finally, Benchmark reaffirmed a buy rating and set a $8.00 price target on shares of Transocean in a research note on Friday, August 2nd. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of Hold and an average price target of $7.00.

View Our Latest Stock Analysis on RIG

Transocean Stock Performance

Shares of RIG opened at $4.57 on Monday. The company has a market capitalization of $4.30 billion, a PE ratio of -8.79 and a beta of 2.79. Transocean has a 52-week low of $3.85 and a 52-week high of $8.71. The company has a 50-day simple moving average of $5.00 and a 200-day simple moving average of $5.46. The company has a quick ratio of 1.08, a current ratio of 1.36 and a debt-to-equity ratio of 0.63.

Transocean (NYSE:RIG – Get Free Report) last issued its quarterly earnings data on Wednesday, July 31st. The offshore drilling services provider reported ($0.15) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.07). The business had revenue of $861.00 million during the quarter, compared to analyst estimates 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 was up 18.1% on a year-over-year basis. During the same period in the previous year, the company posted ($0.15) earnings per share. Equities research analysts predict that Transocean will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Perestroika bought 1,500,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 12th. The shares were acquired at an average cost of $4.13 per share, with a total value of $6,195,000.00. Following the completion of the transaction, the director now owns 91,074,894 shares of the company’s stock, valued at $376,139,312.22. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In related news, Director Perestroika bought 1,500,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 12th. The shares were acquired at an average cost of $4.13 per share, with a total value of $6,195,000.00. Following the completion of the transaction, the director now owns 91,074,894 shares of the company’s stock, valued at $376,139,312.22. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director (Cyprus) Ltd Perestroika bought 2,000,000 shares of the firm’s 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 completion of the transaction, the director now directly owns 89,574,894 shares of the company’s stock, valued at approximately $468,476,695.62. The disclosure for this purchase can be found here. Corporate insiders own 13.16% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. OLD Point Trust & Financial Services N A purchased a new position in Transocean in the fourth quarter valued at approximately $25,000. Northwestern Mutual Wealth Management Co. raised its holdings in Transocean by 138.8% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,633 shares of the offshore drilling services provider’s stock valued at $25,000 after buying an additional 2,693 shares during the period. Nisa Investment Advisors LLC purchased a new position in Transocean in the second quarter valued at approximately $30,000. Fiducient Advisors LLC purchased a new position in Transocean in the first quarter valued at approximately $63,000. Finally, SG Americas Securities LLC purchased a new position in Transocean in the second quarter valued at approximately $64,000. Hedge funds and other institutional investors own 67.73% of the company’s stock.

About Transocean

(Get Free Report)

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.

Read More