Transocean (NYSE:RIG) Shares Gap Down - Should You Sell?

Transocean Ltd. (NYSE:RIG - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $4.14, but opened at $4.00. Transocean shares last traded at $4.04, with a volume of 2,494,733 shares.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on RIG shares. Citigroup lowered shares of Transocean from a "buy" rating to a "neutral" rating in a report on Thursday, September 12th. StockNews.com upgraded shares of Transocean to a "sell" rating in a report on Thursday, October 10th. DNB Markets upgraded shares of Transocean from a "hold" rating to a "buy" rating in a report on Tuesday, September 3rd. Benchmark downgraded shares of Transocean from a "buy" rating to a "hold" rating in a research note on Tuesday, October 15th. Finally, Morgan Stanley raised their price target on shares of Transocean from $5.00 to $6.00 and gave the stock an "equal weight" rating in a research note on Thursday, October 3rd. Two research analysts have rated the stock with a sell rating, five have given a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, Transocean has an average rating of "Hold" and an average target price of $6.69.

Transocean Stock Performance

The business's 50-day moving average price is $4.40 and its 200-day moving average price is $5.13. The company has a current ratio of 1.36, a quick ratio of 1.08 and a debt-to-equity ratio of 0.63. The stock has a market cap of $3.52 billion, a PE ratio of -8.94 and a beta of 2.79.

Transocean (NYSE:RIG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 31st. The offshore drilling services provider reported ($0.15) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.07). Transocean had a negative return on equity of 4.76% and a negative net margin of 11.34%. The firm had revenue of $861.00 million during the quarter, compared to analysts' expectations of $862.25 million. During the same period in the previous year, the firm earned ($0.15) EPS. The firm's quarterly revenue was up 18.1% on a year-over-year basis. As a group, equities research analysts expect that Transocean Ltd. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Perestroika bought 1,500,000 shares of the stock in a transaction that occurred on Thursday, September 12th. The stock was bought at an average cost of $4.13 per share, for a total transaction of $6,195,000.00. Following the purchase, the director now directly owns 91,074,894 shares of the company's stock, valued at approximately $376,139,312.22. This trade represents a 0.00 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In related news, Director Perestroika bought 1,500,000 shares of the stock in a transaction that occurred on Thursday, September 12th. The stock was bought at an average cost of $4.13 per share, for a total transaction of $6,195,000.00. Following the purchase, the director now directly owns 91,074,894 shares of the company's stock, valued at approximately $376,139,312.22. This trade represents a 0.00 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director (Cyprus) Ltd Perestroika bought 2,000,000 shares of the stock in a transaction that occurred on Friday, August 2nd. The stock was bought at an average price of $5.23 per share, with a total value of $10,460,000.00. Following the completion of the purchase, the director now directly owns 89,574,894 shares in the company, valued at $468,476,695.62. This represents a 0.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 12.54% of the stock is owned by company insiders.

Institutional Trading of Transocean

Several institutional investors and hedge funds have recently bought and sold shares of the business. International Assets Investment Management LLC lifted its stake in Transocean by 335.3% during the 3rd quarter. International Assets Investment Management LLC now owns 196,699 shares of the offshore drilling services provider's stock valued at $836,000 after acquiring an additional 151,507 shares during the period. Glenorchy Capital Ltd lifted its stake in Transocean by 34.0% during the 3rd quarter. Glenorchy Capital Ltd now owns 586,219 shares of the offshore drilling services provider's stock valued at $2,491,000 after acquiring an additional 148,755 shares during the period. Moss Adams Wealth Advisors LLC acquired a new stake in Transocean during the 3rd quarter valued at approximately $132,000. nVerses Capital LLC lifted its stake in Transocean by 9.3% during the 3rd quarter. nVerses Capital LLC now owns 60,100 shares of the offshore drilling services provider's stock valued at $255,000 after acquiring an additional 5,100 shares during the period. Finally, Vontobel Holding Ltd. lifted its stake in Transocean by 35.1% during the 3rd quarter. Vontobel Holding Ltd. now owns 135,071 shares of the offshore drilling services provider's stock valued at $574,000 after acquiring an additional 35,071 shares during the period. 67.73% of the stock is currently owned by institutional investors and hedge funds.

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.