Transocean Ltd. [RIG] is 9.78% higher this YTD. Is it still time to buy?

Transocean Ltd. [NYSE: RIG] slipped around -0.2 points on Friday, while shares priced at $3.03 at the close of the session, down -6.19%. The company report on September 13, 2022 that Transocean Ltd. Announces Private Exchange and Purchase of Certain Existing Securities and Issuance of New Exchangeable Bonds and Warrants.


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Transocean Ltd. (NYSE: RIG) (“Transocean”) announced today that it has executed privately negotiated exchange and purchase agreements relating to certain of the 0.50% Exchangeable Senior Bonds due 2023 (the “Existing Exchangeable Bonds”) and certain of the 7.25% Senior Notes due 2025 (the “2025 Priority Guaranteed Notes”) issued by Transocean Inc., Transocean’s wholly-owned subsidiary. In aggregate, these transactions provide Transocean with an incremental $175 million in liquidity, further improving the flexibility of the company’s balance sheet.

Pursuant to the exchange and purchase agreements, Transocean Inc. agreed to exchange (a) approximately $73.0 million aggregate principal amount of its Existing Exchangeable Bonds for (i) approximately $73.0 million aggregate principal amount of new 4.625% Senior Guaranteed Exchangeable Bonds due 2029 (the “New Exchangeable Bonds”) to be issued by Transocean Inc. and (ii) warrants (the “Warrants,” and together with the New Exchangeable Bonds, the “Exchange Securities”) to subscribe for Transocean shares, CHF 0.10 per share (the “Warrant Shares”), equal to 31.5% of the aggregate number of Transocean shares underlying such New Exchangeable Bonds, and (b) approximately $43.3 million aggregate principal amount of its 2025 Priority Guaranteed Notes for approximately $38.9 million aggregate principal amount of New Exchangeable Bonds. In addition, pursuant to the exchange and purchase agreements, Transocean Inc. agreed to sell approximately $188.1 million aggregate principal amount of new and additional New Exchangeable Bonds (the “Additional New Bonds”) and issue new and additional Warrants (the “Additional New Warrants,” together with the Additional New Bonds, the “Additional New Securities”) to subscribe for Warrant Shares equal to 28.3% of the aggregate number of Transocean shares underlying such New Exchangeable Bonds.

Transocean Ltd. stock is now 9.78% up from its year-to-date (YTD) trading value. RIG Stock saw the intraday high of $3.22 and lowest of $3.00 per share. The company’s 52-week high price is 5.56, which means current price is +30.60% above from all time high which was touched on 03/08/22.

Compared to the average trading volume of 18.54M shares, RIG reached a trading volume of 33248675 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]?

BTIG Research have made an estimate for Transocean Ltd. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 06, 2022. The new note on the price target was released on August 02, 2022, representing the official price target for Transocean Ltd. stock. Previously, the target price had yet another raise to $5, while Pareto analysts kept a Hold rating on RIG stock.

The Average True Range (ATR) for Transocean Ltd. is set at 0.21, with the Price to Sales ratio for RIG stock in the period of the last 12 months amounting to 0.90. The Price to Book ratio for the last quarter was 0.19, with the Price to Cash per share for the same quarter was set at 0.97. Price to Free Cash Flow for RIG in the course of the last twelve months was 61.61 with Quick ratio for the last quarter at 1.20.

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 -19.20. With this latest performance, RIG shares dropped by -13.68% in over the last four-week period, additionally sinking by -29.37% over the last 6 months – not to mention a drop of -12.68% 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 36.24, with the RSI for the last a single of trading hit 29.07, and the three-weeks RSI is set at 40.61 for Transocean Ltd. [RIG]. The present Moving Average for the last 50 days of trading for this stock 3.32, while it was recorded at 3.45 for the last single week of trading, and 3.66 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 -1.96 and a Gross Margin at +4.58. Transocean Ltd.’s Net Margin is presently recorded at -23.16.

Return on Equity for this stock declined to -5.23, with Return on Assets sitting at -2.79.

Transocean Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.50.

Insider trade positions for Transocean Ltd. [RIG]

There are presently around $1,173 million, or 56.00% of RIG stock, in the hands of institutional investors. The top three institutional holders of RIG stocks are: VANGUARD GROUP INC with ownership of 55,150,263, which is approximately 4.638% of the company’s market cap and around 11.70% of the total institutional ownership; PRIMECAP MANAGEMENT CO/CA/, holding 47,064,306 shares of the stock with an approximate value of $142.6 million in RIG stocks shares; and VAN ECK ASSOCIATES CORP, currently with $100.43 million in RIG stock with ownership of nearly -4.997% of the company’s market capitalization.

Positions in Transocean Ltd. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 128 institutional holders increased their position in Transocean Ltd. [NYSE:RIG] by around 35,129,597 shares. Additionally, 158 investors decreased positions by around 33,278,105 shares, while 97 investors held positions by with 318,845,631 shares. The mentioned changes placed institutional holdings at 387,253,333 shares, according to the latest SEC report filing. RIG stock had 48 new institutional investments in for a total of 14,564,218 shares, while 51 institutional investors sold positions of 8,151,058 shares during the same period.

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