Shares of Transocean Ltd. (NYSE:RIG) recorded -0.23% loss during trading session on April 12th, 2019. The script traded as low as $8.79 and last traded at $8.82. 9.98 million shares changed exchanged hands during trading, an increase of 17.71% from the 30-day average session volume of 12.13M shares. The firm had previously closed at $8.84. The company has $604.35M outstanding shares, price-to-earnings-growth ratio of 1.77and a beta of 1.81. The company has a RSI of 48.03, ATR of 0.35 and a volatility of 3.51% this week. RIG has a 52 week low price of $6.19 and a 52 week high price of $14.47.
Investors have identified the tech company Transocean Ltd. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 5.33B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Transocean Ltd. (RIG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For RIG, the company has in raw cash 2.71 billion on their books with 269 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 3.95 billion total, with 67 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
RIG were able to record 374 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 386 million. In cash movements, the company had a total of 558 million as operating cash flow.
Potential earnings growth for Transocean Ltd. (RIG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Transocean Ltd. recorded a total of 748 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.16% coming in sequential stages and their sales for the third quarter reducing by -0.09%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 773 million trying to sell their products during the last quarter, with the result yielding a gross income of 25 million. This allows shareholders to hold on to 604.35M with the revenue now reading -450 cents per share. This is a figure that is close to analystâ€™s prediction for their fourth quarter (-0.21 cents a share).
Is the stock of RIG attractive?
Having a look at the companyâ€™s valuation, the company is expected to record -0.48 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on RIG sounds very interesting.
In related news, EVP, CAO & CIO DAVIS HOWARD E sold 55,212 shares of the companyâ€™s stock in a transaction that recorded on December 28th, 2019. The sale was performed at an average price of 7.10, for a total value of 392,099. As the sale deal closes, the EVP, CAO & CIO DAVIS HOWARD E now sold 10,298 shares of the companyâ€™s stock, valued at 74,969. Also, Director CHANG VANESSA C L bought 6,000 shares of the companyâ€™s stock in a deal that was recorded on December 10th, 2019. The shares were bought at an average price of 8.00 per share, with a total market value of 9,700. Following this completion of acquisition, the SVP and Corporate Controller now holds 1,350 shares of the companyâ€™s stock, valued at 19,440. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
8 out of 32 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Transocean Ltd. stock. 0 analysts has assigned a Sell rating on the RIG stock. The 12-month mean consensus price target for the companyâ€™s shares has been set at $12.84.