Transocean Ltd. [NYSE: RIG] slipped around -0.07 points on Tuesday, while shares priced at $2.25 at the close of the session, down -3.02%. The company report on December 18, 2020 that Transocean Ltd. Announces Successful Court Ruling Granting its Motion for Summary Judgment And Holding Internal Reorganization Did Not Violate Indenture.
Transocean Ltd. (NYSE: RIG) announced that the United States District Court for the Southern District of New York (the “Court”) granted Transocean Ltd. and Transocean Inc.’s (together, “Transocean”) motion for summary judgment (“Summary Judgment”) with respect to Transocean’s counterclaims against funds managed by, or affiliated with, Whitebox Advisors LLC (“Whitebox”) seeking declaratory relief regarding the allegations contained in the previously disclosed purported notice of alleged default (the “2027 Notes Notice”) with respect to Transocean’s 8.00% Senior Notes due 2027 (the “2027 Guaranteed Notes”).
In granting Summary Judgment, the Court held that Transocean’s previously announced exchange transactions and internal reorganization (the “Transactions”) did not violate the applicable provisions of the indenture governing the 2027 Guaranteed Notes (the “2027 Notes Indenture”), that the purported events of default described in the 2027 Notes Notice do not constitute an actual default under the 2027 Notes Indenture, and that any associated rights and remedies sought by Whitebox, including acceleration of the 2027 Guaranteed Notes, are unavailable.
Transocean Ltd. stock is now -67.30% down from its year-to-date (YTD) trading value. RIG Stock saw the intraday high of $2.345 and lowest of $2.24 per share. The company’s 52-week high price is 7.28, which means current price is +246.15% above from all time high which was touched on 01/03/20.
Compared to the average trading volume of 33.92M shares, RIG reached a trading volume of 17336280 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Transocean Ltd. [RIG]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RIG shares is $1.96 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RIG stock is a recommendation set at 3.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Susquehanna have made an estimate for Transocean Ltd. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on September 16, 2020. While these analysts kept the previous recommendation, Evercore ISI raised their target price to In-line. The new note on the price target was released on August 06, 2020, representing the official price target for Transocean Ltd. stock.
The Average True Range (ATR) for Transocean Ltd. is set at 0.24, with the Price to Sales ratio for RIG stock in the period of the last 12 months amounting to 0.44. The Price to Book ratio for the last quarter was 0.12, with the Price to Cash per share for the same quarter was set at 2.17.
How has RIG stock performed recently?
Transocean Ltd. [RIG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.64. With this latest performance, RIG shares gained by 63.04% in over the last four-week period, additionally plugging by 16.58% over the last 6 months – not to mention a drop of -65.60% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RIG stock in for the last two-week period is set at 58.10, with the RSI for the last a single of trading hit 51.11, and the three-weeks RSI is set at 60.80 for Transocean Ltd. [RIG]. The present Moving Average for the last 50 days of trading for this stock 1.48, while it was recorded at 2.41 for the last single week of trading, and 1.51 for the last 200 days.
Transocean Ltd. [RIG]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Transocean Ltd. [RIG] shares currently have an operating margin of -3.05 and a Gross Margin at +2.84. Transocean Ltd.’s Net Margin is presently recorded at -38.32.
Return on Total Capital for RIG is now -0.45, given the latest momentum, and Return on Invested Capital for the company is -5.73. Return on Equity for this stock declined to -10.05, with Return on Assets sitting at -5.04. When it comes to the capital structure of this company, Transocean Ltd. [RIG] has a Total Debt to Total Equity ratio set at 83.20. Additionally, RIG Total Debt to Total Capital is recorded at 45.41, with Total Debt to Total Assets ending up at 40.94. Long-Term Debt to Equity for the company is recorded at 78.01, with the Long-Term Debt to Total Capital now at 42.58.
Reflecting on the efficiency of the workforce at the company, Transocean Ltd. [RIG] managed to generate an average of -$190,152 per employee. Receivables Turnover for the company is 5.10 with a Total Asset Turnover recorded at a value of 0.13.Transocean Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.80 and a Current Ratio set at 2.00.
Earnings analysis for Transocean Ltd. [RIG]
With the latest financial reports released by the company, Transocean Ltd. posted -0.43/share EPS, while the average EPS was predicted by analysts to be reported at -0.3/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -43.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RIG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Transocean Ltd. go to 4.80%.
Insider trade positions for Transocean Ltd. [RIG]
There are presently around $666 million, or 49.50% of RIG stock, in the hands of institutional investors. The top three institutional holders of RIG stocks are: PRIMECAP MANAGEMENT CO/CA/ with ownership of 49,073,606, which is approximately -1.647% of the company’s market cap and around 5.75% of the total institutional ownership; VANGUARD GROUP INC, holding 44,555,720 shares of the stock with an approximate value of $100.25 million in RIG stocks shares; and BLACKROCK INC., currently with $89.72 million in RIG stock with ownership of nearly -42.715% of the company’s market capitalization.
Positions in Transocean Ltd. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 108 institutional holders increased their position in Transocean Ltd. [NYSE:RIG] by around 33,143,882 shares. Additionally, 159 investors decreased positions by around 96,241,339 shares, while 81 investors held positions by with 166,708,846 shares. The mentioned changes placed institutional holdings at 296,094,067 shares, according to the latest SEC report filing. RIG stock had 35 new institutional investments in for a total of 11,806,481 shares, while 76 institutional investors sold positions of 18,590,253 shares during the same period.