Transocean (NYSE:RIG) Shares Gap Up - Should You Buy?

Shares of Transocean Ltd. (NYSE:RIG - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $3.67, but opened at $3.78. Transocean shares last traded at $3.80, with a volume of 3,825,413 shares traded.

Wall Street Analyst Weigh In

RIG has been the topic of a number of recent research reports. DNB Markets raised Transocean from a "hold" rating to a "buy" rating in a research report on Tuesday, September 3rd. JPMorgan Chase & Co. raised shares of Transocean from an "underweight" rating to a "neutral" rating and set a $5.00 price objective on the stock in a research report on Friday, December 6th. Benchmark restated a "hold" rating on shares of Transocean in a report on Tuesday, December 3rd. Morgan Stanley boosted their price target on shares of Transocean from $5.00 to $6.00 and gave the stock an "equal weight" rating in a research report on Thursday, October 3rd. Finally, 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 research note on Wednesday. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, Transocean currently has a consensus rating of "Hold" and a consensus price target of $6.25.

Transocean Trading Down 1.4 %

The company has a market cap of $3.17 billion, a P/E ratio of -4.83 and a beta of 2.75. The business's 50-day moving average price is $4.22 and its 200 day moving average price is $4.72. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.34 and a current ratio of 1.64.

Insider Buying and Selling

In related news, EVP Roderick James Mackenzie sold 20,000 shares of Transocean stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $4.29, for a total transaction of $85,800.00. Following the completion of the sale, the executive vice president now owns 310,857 shares of the company's stock, valued at approximately $1,333,576.53. The trade was a 6.04 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 13.16% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Pilgrim Global Advisors LLC acquired a new position in shares of Transocean in the third quarter valued at approximately $77,473,000. Dimensional Fund Advisors LP boosted its stake in Transocean by 19.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 36,725,995 shares of the offshore drilling services provider's stock valued at $196,484,000 after purchasing an additional 5,856,414 shares during the period. American Century Companies Inc. grew its holdings in Transocean by 24.3% in the 2nd quarter. American Century Companies Inc. now owns 13,437,572 shares of the offshore drilling services provider's stock valued at $71,891,000 after buying an additional 2,623,615 shares in the last quarter. Bank of New York Mellon Corp increased its position in Transocean by 18.3% during the 2nd quarter. Bank of New York Mellon Corp now owns 16,858,264 shares of the offshore drilling services provider's stock worth $90,192,000 after buying an additional 2,606,017 shares during the period. Finally, Kailix Advisors LLC grew its stake in shares of Transocean by 59.9% in the third quarter. Kailix Advisors LLC now owns 6,620,451 shares of the offshore drilling services provider's stock valued at $28,137,000 after acquiring an additional 2,481,059 shares in the last quarter. 67.73% of the stock is owned by institutional investors.

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.