Does Wall Street Rate Transocean Ltd. (RIG) Shares A Sell?

As of Thursday close, Transocean Ltd.’s (NYSE:RIG) stock was down -$0.11, moving down -3.12 percent to $3.42. The average number of shares traded per day over the past five days has been 20,030,500 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.79 fall in that time frame. In the last twenty days, the average volume was 17,394,605, while in the previous 50 days, it was 25,189,201.

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Since last month, RIG stock retreated -21.20%. Shares of the company fell to $3.33 on 05/12/22, the lowest level in the past month. A 52-week high of $5.56 was reached on 03/08/22 after having rallying from a 52-week low of $2.63. Since the beginning of this year, RIG’s stock price has risen by 23.91% or $0.66, and marked a new high 13 times. However, the stock has declined by -38.49% since its 52-week high.

Transocean Ltd. (RIG) last reported insider trading activity 67 days ago on Mar 07. Adamson Keelan, the President & COO of the company, disposed of 349,418 shares for $5.00 on Mar 07. It resulted in a $1,747,090 divestment by the insider. Mohn Frederik Wilhelm added 1,000,000 shares at an average price of $4.53 on Jun 25. The insider now owns 80,640,354 shares following the transaction. On Jun 25, Director Perestroika bought 1,000,000 shares at $4.53 apiece. The transaction was valued at $4,530,000.

Valuation Metrics

The stock’s beta is 2.99. Besides these, the trailing price-to-sales (P/S) ratio of 0.96, the price-to-book (PB) ratio of 0.20, and the price-to-cash flow ratio of 10.67 may also be considered.

The latest dividend of $0.15 per share was paid out, remained unchanged from last year’s $0.15.

Financial Health

In the three months ended September 29, Transocean Ltd.’s quick ratio stood at 1.40, while its current ratio was 1.70, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.57, and the total debt-to-equity ratio was 0.63. On the profitability front, the trailing twelve-month gross margin is 32.70% percent. In the year ended September 29, operating margins totaled -3.80%. Based on annual data, RIG earned -$112.0 million in gross profit and brought in $2.56 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -1.00%. Return on equity (ROE) for the past 12 months was -6.00%.

In Transocean Ltd.’s quarter-end financial report for September 29, it reported total debt of $6.38 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. RIG’s revenue fell -11.43% to $621.0 million during the quarter, while net income inched up to $586.0 million. While analysts expected Transocean Ltd. to report -$0.16 quarterly earnings, the actual figure was -$0.19 per share, beating the consensus estimate by -18.80%. During the quarter, the company generated $162.0 million in EBITDA. The liabilities of Transocean Ltd. were 9.23 billion at the end of its most recent quarter ended September 29, and its total debt was $7.69 billion. The value of shareholders’ equity is $681.06 million.

Technical Picture

This quick technical analysis looks at Transocean Ltd.’s (RIG) price momentum. With a historical volatility rate of 101.38%, the RSI 9-day stood at 31.67% on 12 May.

With respect to its five-day moving average, the current Transocean Ltd. price is down by -18.76% percent or -$0.79. At present, RIG shares trade -24.34% below its 20-day simple moving average and +17.53% percent above its 100-day simple moving average. However, the stock is currently trading approximately -9.04% below its SMA50 and -5.52% below its SMA200.

Stochastic coefficient K was 8.56% and Stochastic coefficient D was 10.54%, while ATR was 0.31. Given the Stochastic reading of 9.09% for the 14-day period, the RSI (14) reading has been calculated as 36.05%. As of today, the MACD Oscillator reading stands at -0.33, while the 14-day reading stands at -0.35.

With a median target price of $4.25, the current consensus forecast for the stock is $3.00 – $6.00. Based on these forecasts, analysts predict Transocean Ltd. (RIG) will achieve an average price target of $4.22.


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