The stock price of Transocean Ltd (NYSE: RIG) has surged by 2.26 when compared to previous closing price of 5.74, but the company has seen a 3.53% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-25 that Transocean’s (RIG) drillships have won contract extensions worth $248 million. The extensions have been awarded by Hess Corporation and TotalEnergies in the Gulf of Mexico and Angola, respectively.
Is It Worth Investing in Transocean Ltd (NYSE: RIG) Right Now?
The 36-month beta value for RIG is also noteworthy at 2.81. There are mixed opinions on the stock, with 12 analysts rating it as a “buy,” 2 rating it as “overweight,” 14 rating it as “hold,” and 7 rating it as “sell.”
The public float for RIG is 721.19M, and at present, short sellers hold a 17.96% of that float. The average trading volume of RIG on April 29, 2024 was 18.46M shares.
RIG’s Market Performance
RIG stock saw a decrease of 3.53% in the past week, with a monthly decline of -6.08% and a quarterly a decrease of 2.80%. The volatility ratio for the week is 3.90%, and the volatility levels for the last 30 days are 4.27% for Transocean Ltd (RIG). The simple moving average for the last 20 days is -4.46% for RIG stock, with a simple moving average of -12.41% for the last 200 days.
Analysts’ Opinion of RIG
Many brokerage firms have already submitted their reports for RIG stocks, with Susquehanna repeating the rating for RIG by listing it as a “Positive.” The predicted price for RIG in the upcoming period, according to Susquehanna is $9 based on the research report published on April 08, 2024 of the current year 2024.
CapitalOne, on the other hand, stated in their research note that they expect to see RIG reach a price target of $8. The rating they have provided for RIG stocks is “Equal Weight” according to the report published on November 28th, 2023.
Citigroup gave a rating of “Buy” to RIG, setting the target price at $9.50 in the report published on July 05th of the previous year.
RIG Trading at 3.58% from the 50-Day Moving Average
After a stumble in the market that brought RIG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -33.90% of loss for the given period.
Volatility was left at 4.27%, however, over the last 30 days, the volatility rate increased by 3.90%, as shares sank -6.53% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +13.54% upper at present.
During the last 5 trading sessions, RIG rose by +3.53%, which changed the moving average for the period of 200-days by -26.81% in comparison to the 20-day moving average, which settled at $6.12. In addition, Transocean Ltd saw -7.56% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RIG starting from Mohn Frederik Wilhelm, who purchase 1,000,000 shares at the price of $4.89 back on Feb 27 ’24. After this action, Mohn Frederik Wilhelm now owns 85,574,894 shares of Transocean Ltd, valued at $4,890,000 using the latest closing price.
Perestroika (Cyprus) Ltd, the Director of Transocean Ltd, purchase 1,000,000 shares at $4.89 during a trade that took place back on Feb 27 ’24, which means that Perestroika (Cyprus) Ltd is holding 85,574,894 shares at $4,890,000 based on the most recent closing price.
Stock Fundamentals for RIG
Current profitability levels for the company are sitting at:
- -0.03 for the present operating margin
- 0.54 for the gross margin
The net margin for Transocean Ltd stands at -0.34. The total capital return value is set at -0.0. Equity return is now at value -9.00, with -4.69 for asset returns.
Based on Transocean Ltd (RIG), the company’s capital structure generated 0.42 points at debt to capital in total, while cash flow to debt ratio is standing at 0.02. The debt to equity ratio resting at 0.71. The interest coverage ratio of the stock is -0.09.
Currently, EBITDA for the company is 711.0 million with net debt to EBITDA at 7.66. When we switch over and look at the enterprise to sales, we see a ratio of 3.97. The receivables turnover for the company is 5.53for trailing twelve months and the total asset turnover is 0.14. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.52.
Conclusion
In summary, Transocean Ltd (RIG) has had a mixed performance as of late. Analysts have bearish opinions on the stock, with some viewing it as a “sell” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
