Transocean Ltd. (NYSE:RIG) is a big mover this session as the company shares are trading 4.31% or 0.25 points lower from last closing price of $5.8, reaching $5.55 at last check. So what’s going on with RIG shares anyway? The price has dropped in 1 of the last 5 days and is up 5.45% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -25,000,000 shares, and in total 5.893 million shares valued at $32.709 million were seen changing hands compared with 30.485 million shares valued at $176.812 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the RIG stock is near its bottom.
Transocean Ltd. (RIG) shares have notched a 3-month gain of about 5.45%, but has still tumbled -16.43% year to date. By comparison, the stock sank -46.69% over the past 12 months, while it jumped 33.64% over the 1 month. The company’s market cap is around $3.49B, with its short interest ratio standing at 3.36%.
In the current trading session for RIG, the stock witnessed two major price actions, it rose to a high of $5.63 and was down as much as $5.38 at one point. The high recorded is very low when compared to their 52-week high which is $3.76. The 52-week high is now at -61.85 distance from current price. Their recent low of $14.47 represents a 46.81% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for RIG is $10.14, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Transocean Ltd. earned $-1.79 per share in the trailing 12 months and has a P/E ratio of -3.1. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 21.85 and lower compared to the sector’s average of 15.59. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. RIG also has P/S multiple of 1.08. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.25x.
The company recorded an interesting insider purchase transaction by the Director on Aug 14, 2019. A Securities and Exchanges Commission filings show that Vanessa C L Chang bought a total of 4,000 RIG shares that day for a sum of around $16,000. The filings show that the insider stake has now grown to 21,500 shares, currently worth $119,325. Transocean Ltd. (RIG) insiders have acquired 130,549 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 98,049 shares. In total, individual insiders traded 228,598 shares in the business, which makes up 31.722% of 720,624 shares that were traded over a year. In the past 12 months, insiders have purchased 150,849 shares while the seller parted with 569,775 shares.
RIG‘s last price was down -24.34% as compared to the average trading price of 50 days recorded at $7.34 while enlarging the period to 200 trading days, the average closing price was $5.26. At present, there are 600.87 million in the total number of common shares owned by the public and among those 577.01 million shares have been available to trade. The percentage of shares being held by the company management was 5.68% while institutions stake was 74.2%. The company has generated negative returns on equity over the last 12 months (-8.1%). It managed to keep its gross profit margin at 36.2% over the past 12 months.
When assessing the full upside of the RIG stock, there is another set of technicals that should be looked into and considered. Its 19.36% gain from moving average of $4.65 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 1.81 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of Transocean Ltd. — 10 analysts rate the stock as a buy with another 0 rating it strong buy. There are 6 analysts who maintain a hold rating for the stock, with 1 giving it a sell rating. Analysts arrived at a 12-month price target of $11.8375 on shares of Transocean Ltd. (NYSE:RIG), which corresponds to 113.87% upside potential than its current market price of $5.55 and implies potential despite the recent drop in the price. However, their current target price has fallen from $12.4333 a month ago and is down handily from the consensus target of $12.6071 a quarter ago.
In the last five years, the EPS of the company has been roughly -25.1%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 4.8%. The revenue of the company has retreated at an average annualized rate of about -20.1 over the last five years. The company recently recorded a drop of -4.1%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards RIG stock. River & Mercantile Asset Management LLP added position in the company after it grew 0.5% or 1,155,109 shares of its common stock. The hedge fund now owns 1,160,885 shares worth $6,442,912, SEC documents show. Treasurer of the State of North Carolina shored up assets in the stock as 254738.8 shares have been purchased, increasing its stake by 11.8% to 284,798 shares which are currently valued at $1,580,629. In addition, BlackRock Inc. recently reported that it now owns 48,524,391 shares making a total of $269,000,000 based on the recent price. This refelects a change of 2.9% in their ownership.