Transocean LTD Rating Reiterated by Zacks (RIG)
Transocean LTD (NYSE:RIG)‘s stock had its “neutral” rating restated by Zacks in a research report issued on Thursday. They currently have a $42.00 price target on the stock. Zacks‘s price objective would suggest a potential upside of 8.47% from the company’s current price.
Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Transocean shares, despite high debt. The company recently reported strong second quarter earnings on higher dayrates and reduced operating and maintenance costs. Moreover, Transocean expects a significantly lower operating cost in 2014 relative to the prior two years that is expected to drive its bottom line to a great extent. Transocean also has a technologically advanced and versatile offshore drilling fleet, strong backlog and considerable pricing power. Nevertheless, we expect Transocean shares to remain soft until it fully works its way through claims related to the BP oil spill. “
Transocean LTD (NYSE:RIG) traded down 0.36% on Thursday, hitting $38.58. The stock had a trading volume of 1,748,031 shares. Transocean LTD has a 52-week low of $38.01 and a 52-week high of $55.74. The stock has a 50-day moving average of $41.40 and a 200-day moving average of $42.04. The company has a market cap of $13.973 billion and a P/E ratio of 7.74. Transocean LTD also was the target of unusually large options trading on Tuesday. Traders bought 11,405 call options on the stock. This represents an increase of 118% compared to the typical volume of 5,228 call options.
Transocean LTD (NYSE:RIG) last released its earnings data on Wednesday, August 6th. The company reported $1.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.12 by $0.49. The company had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.27 billion. During the same quarter in the previous year, the company posted $1.08 earnings per share. The company’s revenue for the quarter was down 1.5% on a year-over-year basis. Analysts expect that Transocean LTD will post $4.52 EPS for the current fiscal year.
The company also recently announced a dividend, which is scheduled for Wednesday, September 17th. Shareholders of record on Friday, August 22nd will be paid a dividend of $0.75 per share. The ex-dividend date is Wednesday, August 20th.
Several other analysts have also recently commented on the stock. Analysts at RBC Capital cut their price target on shares of Transocean LTD from $45.00 to $42.00 in a research note on Friday, August 8th. Separately, analysts at Jefferies Group cut their price target on shares of Transocean LTD from $41.00 to $40.00 in a research note on Friday, August 8th. Finally, analysts at Deutsche Bank downgraded shares of Transocean LTD from a “hold” rating to a “sell” rating in a research note on Monday, August 4th. They now have a $27.00 price target on the stock, down previously from $45.00. Six research analysts have rated the stock with a sell rating, eleven have given a hold rating and six have given a buy rating to the company. Transocean LTD presently has a consensus rating of “Hold” and a consensus target price of $43.90.
Transocean Ltd. (NYSE:RIG) is an international provider of offshore contract drilling services for oil and gas wells.
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