As of Wednesday close, Transocean Ltd.’s (NYSE:RIG) stock traded at $8.15. The average number of shares traded per day over the past five days has been 15,652,779 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.23 fall in that time frame. In the last twenty days, the average volume was 14,172,720, while in the previous 50 days, it was 16,005,924.
Since last month, RIG stock retreated -3.78%. Shares of the company fell to $7.67 on 08/08/23, the lowest level in the past month. A 52-week high of $8.86 was reached on 08/11/23 after having rallying from a 52-week low of $2.33. Since the beginning of this year, RIG’s stock price has risen by 78.73% or $3.59, and marked a new high 28 times. However, the stock has declined by -8.01% since its 52-week high.
RIG stock investors should be aware that Transocean Ltd. (RIG) stock had its last reported insider trading activity 14 days ago on Aug 03. Mey Mark-Anthony Lovell, the EVP & CFO of the company, disposed of 396,170 shares for $8.50 on Aug 03. It resulted in a $3,367,445 divestment by the insider. Tonnel David A sold 1,754 shares at an average price of $8.76 on Jul 18. The insider now owns 475,048 shares following the transaction. On Apr 17, SVP – CHIEF ACCOUNTING OFFICER Tonnel David A sold 12,000 shares at $6.53 apiece. The transaction was valued at $78,360.
Valuation Metrics
The stock’s beta is 2.98. Besides these, the trailing price-to-sales (P/S) ratio of 2.29, the price-to-book (PB) ratio of 0.60.
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 June 29, Transocean Ltd.’s quick ratio stood at 1.60, while its current ratio was 2.00, 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 June 29 was 0.69, and the total debt-to-equity ratio was 0.72. On the profitability front, the trailing twelve-month gross margin is 35.40% percent. In the year ended June 29, EBITDA margin amounted to 32.27%, whereas operating margins totaled -8.70%. Based on annual data, RIG earned -$31.0 million in gross profit and brought in $2.58 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 -0.40%. Return on equity (ROE) for the past 12 months was -9.40%.
In Transocean Ltd.’s quarter-end financial report for June 29, it reported total debt of $7.15 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. RIG’s revenue rose 5.08% to $649.0 million during the quarter, while net income inched up to $729.0 million. While analysts expected Transocean Ltd. to report -$0.14 quarterly earnings, the actual figure was -$0.15 per share, beating the consensus estimate by -7.10%. During the quarter, the company generated $163.0 million in EBITDA. The liabilities of Transocean Ltd. were 9.81 billion at the end of its most recent quarter ended June 29, and its total debt was $7.45 billion. The value of shareholders’ equity is $766.65 million.
Technical Picture
This quick technical analysis looks at Transocean Ltd.’s (RIG) price momentum. With a historical volatility rate of 34.54%, the RSI 9-day stood at 45.15% on 16 August.
With respect to its five-day moving average, the current Transocean Ltd. price is down by -2.74% percent or -$0.23. At present, RIG shares trade -1.21% below its 20-day simple moving average and +37.90% percent above its 100-day simple moving average. However, the stock is currently trading approximately +28.96% above its SMA50 and +123.90% above its SMA200.
Stochastic coefficient K was 45.94% and Stochastic coefficient D was 57.30%, while ATR was 0.38. Given the Stochastic reading of 40.34% for the 14-day period, the RSI (14) reading has been calculated as 50.93%. As of today, the MACD Oscillator reading stands at -0.11, while the 14-day reading stands at -0.18.
Analyst Ratings
Citigroup upgraded its rating on Transocean Ltd. (NYSE: RIG) to a Buy in a note to investors on July 05, 2023. The analysts firm previously had a Neutral rating on the stock.Transocean Ltd. (RIG) has been rated Overweight by analysts. According to 2 brokerage firms, RIG is a sell, and 6 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 0 analysts rate Transocean Ltd. stock as buy, with 7 recommending it as overweight.
With a median target price of $8.00, the current consensus forecast for the stock is $6.00 – $12.00. Based on these forecasts, analysts predict Transocean Ltd. (RIG) will achieve an average price target of $8.73.
