Transocean’s stock performance
Transocean hit a 52-week high of $16.6 on December 12, 2016. Transocean’s (RIG) stock performance has been quite impressive, especially in the last three months and in the past year, as it has traded in positive territory despite the industry downturn. The stock has risen 61% in the last three months. It has a year-to-date return of 18%, and it has risen 25% in the last one month.
On the other hand, Diamond Offshore (DO) has a -12% year-to-date return, Ocean Rig (ORIG) has a -1% year-to-date return, Seadrill (SDRL) has a -3% year-to-date return, and Noble (NE) has a -41% year-to-date return.
Recent changes by analysts
RBC downgraded Transocean to “underperform” from “sector perform.” It raised the target price to $17 from $11. Now the company has a “strong buy” rating from three analysts and a “buy” rating from four analysts. 16 analysts gave the company a “hold” recommendation. A total of 37 analysts cover the stock, and the remaining analysts recommend either a “sell” or a “strong sell.” Transocean’s target price is $10.9, which implies a downside potential of 26%.
Transocean is one of the very few offshore drilling (XLE) companies for which the “sell” ratings have fallen over the past one year. In December 2015, out of the 37 analysts that covered the stock, seven analysts gave a “strong sell” recommendation, and 15 analysts gave a “sell” recommendation. In December 2016, 11 out of the 37 analysts have a “sell” recommendation, while three analysts recommend a “strong sell” for Transocean.