why Transocean Ltd. [RIG] is a Good Choice for Investors After New Price Target of $2.25

Transocean Ltd. [NYSE: RIG] surged by $0.01 during the normal trading session on Friday and reaching a high of $2.84 during the day while it closed the day at $2.78. 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.

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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 has also gained 20.35% of its value over the past 7 days. However, RIG stock has inclined by 209.23% in the 3 months of the year. Over the past six months meanwhile, it has gained 47.87% and gained 20.35% year-on date.

The market cap for RIG stock reached $1.70 billion, with 616.00 million shares outstanding and 579.75 million shares in the current float. Compared to the average trading volume of 35.43M shares, RIG reached a trading volume of 27297733 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to 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 $2.25 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 0.22, with the Price to Sales ratio for RIG stock in the period of the last 12 months amounting to 0.52. The Price to Book ratio for the last quarter was 0.15, with the Price to Cash per share for the same quarter was set at 2.25.

RIG stock trade performance evaluation

Transocean Ltd. [RIG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 20.35. With this latest performance, RIG shares gained by 22.47% in over the last four-week period, additionally plugging by 47.87% over the last 6 months – not to mention a drop of -56.63% 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 72.33, with the RSI for the last a single of trading hit 76.59, and the three-weeks RSI is set at 70.24 for Transocean Ltd. [RIG]. The present Moving Average for the last 50 days of trading for this stock 1.84, while it was recorded at 2.64 for the last single week of trading, and 1.57 for the last 200 days.

Transocean Ltd. [RIG]: An insightful look at the core 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 per share (EPS) analysis for Transocean Ltd. [RIG] stock

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%.

Transocean Ltd. [RIG]: Insider Ownership positions

There are presently around $805 million, or 49.10% 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 $123.86 million in RIG stocks shares; and BLACKROCK INC., currently with $110.86 million in RIG stock with ownership of nearly -42.715% of the company’s market capitalization.

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Positions in Transocean Ltd. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 106 institutional holders increased their position in Transocean Ltd. [NYSE:RIG] by around 33,124,035 shares. Additionally, 153 investors decreased positions by around 94,160,045 shares, while 82 investors held positions by with 162,159,638 shares. The mentioned changes placed institutional holdings at 289,443,718 shares, according to the latest SEC report filing. RIG stock had 34 new institutional investments in for a total of 11,786,660 shares, while 71 institutional investors sold positions of 16,514,175 shares during the same period.

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