The Price Target For Transocean Ltd. (RIG)?


Transocean Ltd. (NYSE:RIG) finished Wednesday with an addition of $0.18 to close at $6.42, an upside of 2.88 percent. An average of 23,865,680 shares of common stock have been traded in the last five days. There was a gain of $0.69 in the past week, and it reached a new high 14 times over the past 12 months. The last 20 days have seen an average of 24,519,404 shares traded, while the 50-day average volume stands at 21,823,688.

RIG stock has increased by 43.62% in the last month. The company shares reached their 1-month lowest point of $4.16 on 01/04/23. With the stock rallying to its 52-week high on 01/25/23, shares of the company touched a low of $2.32 and a high of $6.31 in 52 weeks. It has reached a new high 11 times so far this year and achieved 40.79% or $1.86 in price. In spite of this, the price is up 1.74% from the 52-week high.

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Insider Transactions

RIG stock investors should be aware that Transocean Ltd. (RIG) stock had its last reported insider trading activity 8 days ago on Jan 18. In this transaction, the insider spent $89,427. SVP – CHIEF ACCOUNTING OFFICER, Tonnel David A, disposed of 34,267 shares at a price of $5.45 on Jan 10. The insider now owns more than $186,755 worth of shares. Prior to that, SVP – CHIEF ACCOUNTING OFFICER Tonnel David A went on to Sale 13,069 shares at $4.95 each on Jan 06. An amount of $64,692 was transacted.

Valuation Metrics

Transocean Ltd. (RIG) stock’s beta is 2.86. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.70, the price-to-book (PB) ratio at 0.41, and the price-to-cash flow ratio at 57.94.

Financial Health

The quick ratio of Transocean Ltd. for the three months ended September 29 was 1.40, and the current ratio was 1.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.57 and a total debt to equity ratio of 0.64 for the quarter ending September 29. Its gross profit as reported stood at -$112.0 million compared to revenue of $2.56 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Transocean Ltd.’s return on assets was -2.60%.

Earnings Surprise

For the three-month period that ended September 29, Transocean Ltd. had $6.45 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$28.0 million in the quarter, while revenues were shrunk -364.29%. The analyst consensus anticipated Transocean Ltd.’s latest quarter earnings to come in at -$0.17 per share, but it turned out to be -$0.06, a 64.70% surprise. For the quarter, EBITDA amounted to $274.0 million. Shareholders own equity worth $721.89 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Transocean Ltd. (RIG) price momentum. RSI 9-day as of the close on 25 January was 79.96%, suggesting the stock is Overbought, with historical volatility in this time frame at 51.41%.

As of today, RIG’s price is $6.12 +12.04% or $0.69 from its 5-day moving average. RIG is currently trading +37.47% higher than its 20-day SMA and +77.35% higher than its 100-day SMA. However, the stock’s current price level is +60.90% above the SMA50 and +48.61% above the SMA200.

The stochastic %K and %D were 96.77% and 93.28%, respectively, and the average true range (ATR) was 0.39. With the 14-day stochastic at 97.30% and the average true range at 0.36, the RSI (14) stands at 76.19%. The stock has reached 0.35 on the 9-day MACD Oscillator while the 14-day reading was at 0.65.

Analyst Ratings

The Benchmark Company launched coverage on Transocean Ltd. (NYSE: RIG) in its analyst report released on January 19, 2023. The firm assigned the stock a Buy rating. The consensus rating for Transocean Ltd. (RIG) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell RIG, while 5 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 6 others rate it as a “buy”.

What is RIG’s price target for the next 12 months?

Analysts predict a range of price targets between $4.00 and $10.00, with a median target of $5.50. Taking a look at these predictions, the average price target given by analysts for Transocean Ltd. (RIG) stock is $5.83.


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