Zacks Investment Research Downgrades Transocean LTD (RIG) to Hold
Zacks Investment Research downgraded shares of Transocean LTD (NYSE:RIG) from a buy rating to a hold rating in a research note published on Tuesday morning.
According to Zacks, “Transocean displays excellent track record of earnings surprise history, beating estimates in the last 16 quarters. We like Transocean's technologically advanced and versatile drilling fleet, strong backlog, healthy financials and considerable pricing power. With the market for offshore rigs unlikely to turn around anytime soon, the company has been selling/stacking older rigs as well as investing in high-specification rigs in order to improve the quality of its fleet. The recent acquisition of Songa Offshore by RIG bodes well for the company as it is expected to strengthen Transocean’s portfolio and boost its backlog. Nevertheless, we expect RIG shares to remain soft until oil prices rebound sufficiently, as deepwater/ultra-deepwater drilling – with its associated risks and steep costs – require a far higher oil price than what is prevailing currently. Thus we take a cautious stance on the prospects of the stock.”
Several other equities analysts also recently commented on RIG. Goldman Sachs Group Inc upgraded Transocean LTD from a sell rating to a neutral rating and increased their target price for the company from $8.57 to $9.75 in a research report on Wednesday, August 9th. Evercore ISI reiterated a buy rating and issued a $18.00 target price on shares of Transocean LTD in a research report on Thursday, August 10th. Instinet reiterated a reduce rating and issued a $7.00 target price (down from $8.00) on shares of Transocean LTD in a research report on Saturday, August 19th. Nordea Equity Research reiterated a buy rating and issued a $14.00 target price on shares of Transocean LTD in a research report on Saturday, September 30th. Finally, Bank of America Corporation upgraded Transocean LTD from an underperform rating to a neutral rating and increased their target price for the company from $7.00 to $9.00 in a research report on Tuesday, August 15th. Ten analysts have rated the stock with a sell rating, fourteen have issued a hold rating and fifteen have assigned a buy rating to the stock. The company presently has an average rating of Hold and an average price target of $12.40.
Shares of Transocean LTD (NYSE:RIG) traded down 2.16% during mid-day trading on Tuesday, reaching $9.95. The company had a trading volume of 9,475,813 shares. The company’s market cap is $3.89 billion. The firm’s 50-day moving average price is $9.83 and its 200 day moving average price is $9.50. Transocean LTD has a 52-week low of $7.20 and a 52-week high of $16.66.
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In related news, CAO Howard E. Davis bought 40,000 shares of the company’s stock in a transaction dated Thursday, August 17th. The shares were bought at an average price of $7.32 per share, for a total transaction of $292,800.00. Following the completion of the acquisition, the chief accounting officer now directly owns 21,793 shares of the company’s stock, valued at $159,524.76. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.33% of the stock is owned by company insiders.
Institutional investors have recently modified their holdings of the stock. Bank of Nova Scotia bought a new stake in Transocean LTD during the first quarter worth $604,000. FNY Partners Fund LP bought a new stake in Transocean LTD during the first quarter worth $108,000. Ameritas Investment Partners Inc. bought a new stake in Transocean LTD during the first quarter worth $116,000. Dynamic Technology Lab Private Ltd bought a new stake in Transocean LTD during the first quarter worth $132,000. Finally, Public Employees Retirement Association of Colorado lifted its holdings in Transocean LTD by 12.7% during the second quarter. Public Employees Retirement Association of Colorado now owns 12,340 shares of the offshore drilling services provider’s stock worth $102,000 after acquiring an additional 1,394 shares during the period. Institutional investors and hedge funds own 67.79% of the company’s stock.
About Transocean LTD
Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. The Company’s primary business is to contract its drilling rigs, related equipment and work crews on a dayrate basis to drill oil and gas wells. As of February 9, 2017, it owned or had partial ownership interests in and operated 56 mobile offshore drilling units.
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