Transocean (NYSE:RIG) Reaches New 12-Month Low on Disappointing Earnings

Transocean Ltd. (NYSE:RIG - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $3.38 and last traded at $3.54, with a volume of 4262733 shares trading hands. The stock had previously closed at $3.53.

The offshore drilling services provider reported ($0.09) earnings per share for the quarter, missing analysts' consensus estimates of $0.02 by ($0.11). Transocean had a negative net margin of 14.53% and a negative return on equity of 0.52%. The company had revenue of $952.00 million during the quarter, compared to analysts' expectations of $962.28 million.

Analysts Set New Price Targets

A number of brokerages have weighed in on RIG. StockNews.com upgraded Transocean to a "sell" rating in a report on Tuesday, November 12th. Susquehanna lowered their price target on shares of Transocean from $7.00 to $6.50 and set a "positive" rating on the stock in a research report on Friday, November 1st. Barclays upgraded shares of Transocean from an "equal weight" rating to an "overweight" rating and set a $4.50 price objective for the company in a report on Wednesday, December 18th. JPMorgan Chase & Co. upgraded Transocean from an "underweight" rating to a "neutral" rating and set a $5.00 target price on the stock in a report on Friday, December 6th. Finally, TD Cowen reduced their price objective on Transocean from $6.50 to $5.50 and set a "hold" rating on the stock in a research report on Wednesday, January 8th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, Transocean has a consensus rating of "Hold" and a consensus price target of $5.81.

Insider Buying and Selling at Transocean

In other Transocean news, EVP Roderick James Mackenzie sold 22,000 shares of the stock in a transaction dated Tuesday, February 11th. The shares were sold at an average price of $3.85, for a total transaction of $84,700.00. Following the completion of the transaction, the executive vice president now owns 313,072 shares of the company's stock, valued at $1,205,327.20. This trade represents a 6.57 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 13.16% of the company's stock.

Hedge Funds Weigh In On Transocean

Several large investors have recently made changes to their positions in RIG. Geode Capital Management LLC raised its position in Transocean by 4.1% in the third quarter. Geode Capital Management LLC now owns 17,245,298 shares of the offshore drilling services provider's stock valued at $73,307,000 after purchasing an additional 680,242 shares during the period. Van ECK Associates Corp raised its holdings in shares of Transocean by 33.9% in the 4th quarter. Van ECK Associates Corp now owns 15,393,873 shares of the offshore drilling services provider's stock valued at $57,727,000 after buying an additional 3,895,880 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in Transocean by 7.7% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 11,606,320 shares of the offshore drilling services provider's stock worth $49,327,000 after acquiring an additional 826,229 shares in the last quarter. Barclays PLC lifted its stake in Transocean by 60.1% during the 3rd quarter. Barclays PLC now owns 1,623,924 shares of the offshore drilling services provider's stock worth $6,902,000 after acquiring an additional 609,681 shares in the last quarter. Finally, International Assets Investment Management LLC boosted its holdings 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. 67.73% of the stock is currently owned by institutional investors and hedge funds.

Transocean Price Performance

The company has a market capitalization of $2.96 billion, a PE ratio of -4.61, a price-to-earnings-growth ratio of 0.86 and a beta of 2.70. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.47 and a quick ratio of 1.34. The stock's 50 day simple moving average is $3.79 and its 200-day simple moving average is $4.21.

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.