Foundation Resource Management Inc. Makes New Investment in Transocean Ltd. $RIG

Foundation Resource Management Inc. purchased a new stake in Transocean Ltd. (NYSE:RIG) during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 138,533 shares of the offshore drilling services provider’s stock, valued at approximately $726,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Abel Hall LLC bought a new stake in Transocean in the third quarter valued at about $442,000. Client 1ST Advisory Group LLC acquired a new position in Transocean in the third quarter valued at about $89,000. Counterpoint Mutual Funds LLC acquired a new position in Transocean in the third quarter valued at about $9,112,000. TD Waterhouse Canada Inc. acquired a new position in Transocean in the third quarter valued at about $674,000. Finally, Merrion Investment Management Co LLC bought a new position in Transocean during the third quarter worth about $853,000. 67.73% of the stock is currently owned by institutional investors.

Transocean Trading Up 5.1%

Shares of NYSE RIG traded up $0.28 during midday trading on Monday, reaching $5.91. 56,396,618 shares of the stock were exchanged, compared to its average volume of 40,699,398. Transocean Ltd. has a 12 month low of $3.22 and a 12 month high of $7.66. The company has a market capitalization of $6.60 billion, a price-to-earnings ratio of -3.14, a P/E/G ratio of 4.16 and a beta of 1.41. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.59 and a quick ratio of 1.27. The business has a 50-day simple moving average of $5.65 and a two-hundred day simple moving average of $5.82.

Transocean (NYSE:RIG) last released its quarterly earnings data on Wednesday, August 5th. The offshore drilling services provider reported $0.03 EPS for the quarter, beating analysts’ consensus estimates of $0.01 by $0.02. The business had revenue of $966.00 million during the quarter, compared to analysts’ expectations of $956.64 million. Transocean had a negative net margin of 40.24% and a positive return on equity of 2.60%. The firm’s quarterly revenue was down 2.2% on a year-over-year basis. During the same quarter in the prior year, the company earned ($1.06) EPS. As a group, equities research analysts expect that Transocean Ltd. will post 0.18 EPS for the current year.

Wall Street Analyst Weigh In

RIG has been the subject of several analyst reports. Fearnley Fonds upgraded Transocean from a “hold” rating to a “strong-buy” rating in a research report on Friday, August 7th. Susquehanna lowered their price target on Transocean from $8.00 to $7.00 and set a “positive” rating for the company in a research note on Wednesday, July 8th. Barclays cut their price target on shares of Transocean from $8.00 to $7.00 and set an “overweight” rating on the stock in a research report on Wednesday, August 12th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Transocean in a research report on Thursday. Finally, Zacks Research raised shares of Transocean from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 5th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $6.68.

Transocean Company Profile

Transocean Ltd. is an offshore drilling contractor that provides drilling services to international oil and gas companies. The company specializes in ultra-deepwater and harsh-environment drilling, helping customers explore for and develop offshore energy resources.

Transocean owns and operates a fleet of mobile offshore drilling units, including ultra-deepwater drillships and semisubmersible rigs. Its services generally include contract drilling, rig operations, well-construction support, and related offshore drilling management.

With roots tracing back to the 1920s, Transocean serves customers in major offshore energy regions around the world.