An issue of Transocean LTD (NYSE:RIG) debt rose 2% against its face value during trading on Wednesday. The high-yield issue of debt has a 7.5% coupon and is set to mature on April 15, 2031. The bonds in the issue are now trading at $83.50 and were trading at $81.50 last week. Price moves in a company’s debt in credit markets often predict parallel moves in its stock price.
A number of research firms recently commented on RIG. ValuEngine lowered Transocean from a “strong-buy” rating to a “buy” rating in a research note on Thursday, November 1st. DNB Markets raised Transocean from a “sell” rating to a “hold” rating in a research report on Tuesday, October 30th. Cowen initiated coverage on Transocean in a research report on Saturday, October 13th. They set a “hold” rating and a $12.00 target price on the stock. Johnson Rice raised Transocean from a “sell” rating to a “hold” rating and set a $16.00 price objective on the stock in a research report on Wednesday, October 17th. Finally, UBS Group set a $12.00 price objective on Transocean and gave the stock a “buy” rating in a research report on Thursday, December 20th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and twelve have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average price target of $13.70.
Shares of NYSE:RIG traded down $0.07 during trading hours on Friday, hitting $8.28. 7,744,525 shares of the company’s stock traded hands, compared to its average volume of 13,599,689. The company has a debt-to-equity ratio of 0.75, a current ratio of 3.07 and a quick ratio of 2.77. The firm has a market capitalization of $3.86 billion, a PE ratio of -138.00 and a beta of 1.81. Transocean LTD has a 1 year low of $6.19 and a 1 year high of $14.47.
In other Transocean news, CAO Howard E. Davis sold 10,298 shares of the company’s stock in a transaction on Wednesday, December 19th. The stock was sold at an average price of $7.28, for a total transaction of $74,969.44. Following the completion of the sale, the chief accounting officer now owns 55,212 shares in the company, valued at $401,943.36. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Vanessa C. L. Chang bought 6,000 shares of the stock in a transaction on Monday, December 10th. The shares were bought at an average price of $8.00 per share, with a total value of $48,000.00. Following the acquisition, the director now owns 9,700 shares of the company’s stock, valued at $77,600. The disclosure for this purchase can be found here. Insiders sold 120,722 shares of company stock valued at $858,980 in the last quarter. 14.09% of the stock is owned by company insiders.
A number of institutional investors have recently bought and sold shares of RIG. Cascade Investment Advisors Inc. lifted its holdings in Transocean by 19.3% during the third quarter. Cascade Investment Advisors Inc. now owns 54,025 shares of the offshore drilling services provider’s stock worth $754,000 after buying an additional 8,725 shares during the period. Nisa Investment Advisors LLC grew its position in Transocean by 31.1% during the 3rd quarter. Nisa Investment Advisors LLC now owns 107,891 shares of the offshore drilling services provider’s stock worth $1,505,000 after purchasing an additional 25,591 shares during the period. MinichMacGregor Wealth Management LLC grew its position in Transocean by 100.0% during the 3rd quarter. MinichMacGregor Wealth Management LLC now owns 10,000 shares of the offshore drilling services provider’s stock worth $141,000 after purchasing an additional 5,000 shares during the period. Cornerstone Wealth Management LLC boosted its stake in shares of Transocean by 74.5% during the 3rd quarter. Cornerstone Wealth Management LLC now owns 98,195 shares of the offshore drilling services provider’s stock worth $9,342,000 after acquiring an additional 41,919 shares in the last quarter. Finally, Fisher Asset Management LLC purchased a new position in Transocean in the 3rd quarter valued at about $7,378,000. Institutional investors own 80.62% of the company’s stock.
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About Transocean (NYSE:RIG)
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. The company primarily offers deepwater and harsh environment drilling services. As of February 20, 2018, it owned or had partial ownership interests in, and operated 47 mobile offshore drilling units that consist of 27 ultra-deepwater floaters, 12 harsh environment floaters, 2 deepwater floaters, 6 midwater floaters, and 2 high-specification jackups.
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