Transocean (NYSE:RIG) Cut to Hold at Fearnley Fonds

Fearnley Fonds downgraded shares of Transocean (NYSE:RIG) from a strong-buy rating to a hold rating in a research report report published on Tuesday morning,Zacks.com reports.

Other research analysts also recently issued reports about the stock. Susquehanna upped their target price on shares of Transocean from $4.50 to $5.00 and gave the company a “positive” rating in a research note on Wednesday, January 7th. Barclays boosted their price objective on shares of Transocean from $4.00 to $4.50 and gave the stock an “overweight” rating in a report on Wednesday, November 5th. BTIG Research raised their target price on Transocean from $6.00 to $10.00 and gave the company a “buy” rating in a research note on Monday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Transocean in a research note on Thursday, January 22nd. Finally, Pareto Securities downgraded Transocean from a “hold” rating to a “sell” rating and set a $5.25 price target for the company. in a report on Tuesday. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $5.22.

Transocean Stock Performance

Shares of NYSE:RIG opened at $6.02 on Tuesday. The company has a market cap of $6.63 billion, a P/E ratio of -1.83 and a beta of 1.46. Transocean has a one year low of $1.97 and a one year high of $6.13. The business’s 50-day simple moving average is $4.51 and its 200 day simple moving average is $3.82. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.91 and a current ratio of 1.08.

Insider Buying and Selling at Transocean

In related news, EVP Roderick James Mackenzie sold 35,000 shares of the firm’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $4.48, for a total transaction of $156,800.00. Following the transaction, the executive vice president directly owned 212,072 shares in the company, valued at $950,082.56. This trade represents a 14.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Perestroika acquired 1,500,000 shares of the firm’s stock in a transaction on Monday, November 24th. The stock was acquired at an average cost of $4.02 per share, with a total value of $6,030,000.00. Following the acquisition, the director owned 96,574,894 shares of the company’s stock, valued at $388,231,073.88. This trade represents a 1.58% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders sold 712,970 shares of company stock worth $3,152,132. 12.27% of the stock is owned by insiders.

Hedge Funds Weigh In On Transocean

Hedge funds and other institutional investors have recently bought and sold shares of the stock. TD Waterhouse Canada Inc. raised its position in shares of Transocean by 22,432.1% during the 4th quarter. TD Waterhouse Canada Inc. now owns 6,309 shares of the offshore drilling services provider’s stock worth $26,000 after purchasing an additional 6,281 shares during the period. Flagship Harbor Advisors LLC bought a new position in Transocean during the 4th quarter worth $27,000. Benedict Financial Advisors Inc. acquired a new stake in Transocean in the third quarter worth $31,000. Vestmark Advisory Solutions Inc. bought a new stake in Transocean in the third quarter valued at $31,000. Finally, Forteris Wealth Management Inc. acquired a new position in shares of Transocean during the fourth quarter valued at $41,000. 67.73% of the stock is currently owned by institutional investors and hedge funds.

Transocean News Summary

Here are the key news stories impacting Transocean this week:

• Positive Sentiment: Scale-transforming acquisition — Transocean agreed to buy Valaris in an all‑stock deal (~$5.8B) that creates a much larger, higher‑spec offshore contractor with a ~73‑rig fleet, ~$10B backlog and management‑estimated >$200M of annual cost synergies; the combination should improve pricing power, diversify cash flow and reduce leverage risk. Read More.
• Positive Sentiment: New contract backlog — Transocean announced ~$184M of firm backlog from two harsh‑environment semisubmersible fixtures in Norway (extensions that push work into 2027). These add visible, near‑term revenue and reinforce the company’s positioning in higher‑spec, higher‑margin work. Read More.
• Positive Sentiment: Analyst/upside signals — BTIG raised its price target to $10, and Zacks highlights expectations for earnings growth ahead of the company’s next report, both of which support shorter‑term bullishness and expectations for an earnings beat. Read More. Read More.
• Positive Sentiment: Bullish options flow — Unusually large call buying (≈69,880 calls, ~85% above average) signals speculative optimism or hedging ahead of the M&A/earnings cadence, often amplifying near‑term upside momentum.
• Neutral Sentiment: Investor communications — Management hosted an M&A call (transcript and slide deck available) giving more detail on the Valaris deal; useful for modeling synergies and pro‑forma capital structure but not new news in itself. Read More.
• Negative Sentiment: Analyst downgrade and mixed street views — Fearnley Fonds cut RIG from “strong‑buy” to “hold,” and some prior Street sentiment remains cautious (median recent price targets lower than the stock’s intraday level), which could cap upside if consolidation concerns persist.
• Negative Sentiment: Insider sales and active repositioning — Recent insider sales and mixed institutional moves (large buys by some funds but notable portfolio reductions by others) add ambiguity about near‑term conviction and could create selling pressure around any disappointing headlines. Read More.

Transocean Company Profile

Transocean Ltd. is a leading international provider of offshore contract drilling services for the oil and gas industry. The company specializes in the operation of mobile drilling units, including ultra-deepwater drillships, semisubmersible rigs and high-specification jackup rigs. Transocean’s fleet is designed to meet complex drilling requirements, from ultra-deepwater well construction to shelf exploration and development projects.

The company’s core services encompass the full spectrum of offshore drilling operations, including project and engineering management, marine operations, drilling supervision, and maintenance support.