Traders Buy High Volume of Transocean Call Options (NYSE:RIG)

Transocean Ltd. (NYSE:RIG) was the target of unusually large options trading on Wednesday. Traders bought 69,880 call options on the stock. This represents an increase of approximately 85% compared to the typical daily volume of 37,748 call options.

Transocean Price Performance

Shares of NYSE:RIG traded up $0.46 on Wednesday, reaching $5.90. 71,528,478 shares of the company were exchanged, compared to its average volume of 45,424,438. The company has a current ratio of 1.08, a quick ratio of 0.91 and a debt-to-equity ratio of 0.60. Transocean has a 1-year low of $1.97 and a 1-year high of $5.93. The company has a 50-day moving average of $4.45 and a 200-day moving average of $3.79. The firm has a market cap of $6.49 billion, a price-to-earnings ratio of -1.79 and a beta of 1.46.

Insider Activity

In other news, insider Jeremy D. Thigpen sold 500,000 shares of the firm’s stock in a transaction dated Wednesday, November 26th. The stock was sold at an average price of $4.32, for a total transaction of $2,160,000.00. Following the sale, the insider owned 2,136,223 shares of the company’s stock, valued at approximately $9,228,483.36. This trade represents a 18.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Keelan Adamson sold 58,687 shares of the stock in a transaction that occurred on Tuesday, January 27th. The shares were sold at an average price of $5.00, for a total transaction of $293,435.00. Following the completion of the transaction, the chief executive officer owned 1,222,182 shares in the company, valued at $6,110,910. This represents a 4.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 712,970 shares of company stock valued at $3,152,132 in the last quarter. Insiders own 12.27% of the company’s stock.

Hedge Funds Weigh In On Transocean

Several institutional investors and hedge funds have recently made changes to their positions in RIG. Franklin Resources Inc. grew its holdings in Transocean by 318.9% during the 4th quarter. Franklin Resources Inc. now owns 901,105 shares of the offshore drilling services provider’s stock worth $3,722,000 after acquiring an additional 686,017 shares in the last quarter. Brandywine Global Investment Management LLC increased its holdings in Transocean by 426.8% in the fourth quarter. Brandywine Global Investment Management LLC now owns 2,523,548 shares of the offshore drilling services provider’s stock valued at $10,422,000 after buying an additional 2,044,544 shares during the last quarter. CenterBook Partners LP acquired a new stake in Transocean during the fourth quarter valued at approximately $2,891,000. Los Angeles Capital Management LLC acquired a new position in shares of Transocean in the 4th quarter worth approximately $119,000. Finally, Tradition Wealth Management LLC bought a new stake in shares of Transocean in the 4th quarter valued at approximately $41,000. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of brokerages recently weighed in on RIG. Weiss Ratings reiterated a “sell (d-)” rating on shares of Transocean in a research note on Thursday, January 22nd. Pareto Securities cut Transocean from a “hold” rating to a “sell” rating and set a $5.25 price target on the stock. in a research report on Tuesday. Citigroup lifted their target price on Transocean from $4.25 to $4.50 and gave the company a “neutral” rating in a research note on Thursday, December 11th. Barclays upped their price target on Transocean from $4.00 to $4.50 and gave the stock an “overweight” rating in a research note on Wednesday, November 5th. Finally, Susquehanna lifted their price objective on shares of Transocean from $4.50 to $5.00 and gave the company a “positive” rating in a research report on Wednesday, January 7th. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $5.22.

Key Headlines Impacting Transocean

Here are the key news stories impacting Transocean this week:

• Positive Sentiment: Transformational acquisition announced — Transocean agreed to acquire Valaris in an all‑stock deal valued at about $5.8B, creating a much larger combined fleet, a multi‑billion backlog and management‑projected cost synergies that could materially improve cash flow and leverage metrics. This deal is the primary driver of the recent jump in investor enthusiasm. Offshore Titans: Transocean Buys Valaris for $5.8B
• Positive Sentiment: Backlog boost from Norway contracts — Transocean announced contract fixtures for two harsh‑environment semisubmersibles totaling roughly $184M in firm backlog (notably a seven‑well extension for Transocean Encourage and options for Transocean Enabler), extending revenue visibility into 2027. This supports near‑to‑midterm cash flow projections. Press Release
• Positive Sentiment: Heavy bullish options activity — Unusual call buying was reported (≈69,880 calls, ~85% above normal call volume), indicating speculative or hedged bullish positioning by traders ahead of deal/earnings developments. This often amplifies short‑term upside moves in the equity.
• Positive Sentiment: Analyst upside — BTIG raised its price target to $10, signaling some analysts view material upside if the Valaris deal and synergy plan execute. That upgrade helped attract additional buy interest. BTIG Research Raises Price Target
• Neutral Sentiment: M&A call transcript available — A recent M&A call transcript (management commentary) has been posted; investors should read for detail on transaction rationale, integration timeline and financing assumptions to refine expectations. M&A Call Transcript
• Neutral Sentiment: Market attention and volume — Coverage and analyst notes have driven unusually high trading volumes; this can increase short‑term volatility as the market re‑prices the deal and backlog news. High Trading Volume on Analyst Upgrade
• Negative Sentiment: Some sell‑side caution — Fearnley Fonds downgraded RIG from “strong‑buy” to “hold,” which could temper near‑term buy pressure from certain institutional holders. Zacks report
• Negative Sentiment: Legal/ regulatory overhang — A class‑action investigation into Transocean was announced and third parties are probing the Valaris sale process, creating potential legal/transactional risk that could delay closing or add costs. These investigations are a material overhang until resolved. Class Action Notice Valaris Sale Probe

About Transocean

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.