Transocean Ltd. (NYSE: RIG) shares are -83.72% down in the year-to-date (YTD) period and have moved 14.29% or $0.16 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +68.02% lower. Comparatively, the stock is -82.42% down YTD and -76.32% over the trailing 3-month period. If we look at the shorter duration, its week performance is 17.88% and -2.61% over the month.
On April 22, 2020, RBC Capital Mkts recommended the RIG stock is a Underperform, while earlier, DNB Markets had Downgrade the stock as a Sell on April 29, 2020. 28 analysts offering the recommendations for the stock have a consensus rating of 2.90 to suggest that the RIG stock is a “Moderate Sell. 5 of the 28 analysts rate the stock as a “Sell”, while 2 has rated it as “Underweight”. 8 recommend buying, with 0 rating it as an Overweight.
The stock currently trades at $1.28 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $3.88. The forecasts give the Transocean Ltd. stock a price target range of $11.00 on the higher side while at least one analyst think the stock could plunge to a low of $0.30. The two limits represent an upside potential of 88.36% or -326.67%.
Analysts estimate the earnings to decrease -3.40% in the current quarter to -$0.19, up from the -$0.34 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.89, up 1.70% from -$1.45 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.34 and -$0.1. Wall Street estimates earnings per share to be at an average of -$0.9 for the next year.
Insider Transactions Summary
According to SEC data, total insider shares purchases at the company stands at 38 over the last 12 months, while SEC filings reveal that there have been 15 insider sales over the same period. Insiders have purchases 1,168,469 shares while those sold by company executives and officers stand at 453,149. The last 3 months have seen insiders trade a total of 915,886 and 333,551 in purchases and sales respectively.
MULLER EDWARD R, a Director at the company, bought 6,000 shares worth $10289.0 at $1.71 per share on Mar 09. The Director had earlier bought another 5,000 RIG shares valued at $7250.0 on Mar 11. The shares were bought at $1.45 per share. CHANG VANESSA C L (Director) bought 5,000 shares at $2.83 per share on Mar 06 for a total of $14150.0 while DEATON CHAD C, (Director) bought 35,000 shares on Feb 26 for $124250.0 with each share fetching $3.55.
MRC Global Inc. (NYSE:MRC), on the other hand, is trading around $5.36 with a market cap of $472.80M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $6.44 and spell out a more modest performance – a 16.77% return. Some analysts are even forecasting -$0.42 per share in earnings this year on a short term (1 year) basis.
Let us briefly look at the MRC Global Inc. (MRC) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.
Company balance sheet and cash flow
MRC’s operating margin was positive on the trailing 12 months basis, remaining steady at 2.80%, while the operating expenses over the recent quarter were at $141.0 million. This represented a 81.59% of the company’s total revenues which amounted $766.0 million. With this in place, we can see that the company’s diluted EPS declined -$0.35 on the year-over-year period, growing to $0.04 as given in the last earnings report.
In terms of the balance sheet & cash flow as of (Jun 2020), the total assets figure advanced to $2.33 billion from $2.51 billion over the previous quarter. The cash flow from operating activities totaled $242.0 million, significantly higher than the -$11.0 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $224.0 million.
Insiders have transacted a total of 74 times at MRC Global Inc. over the last 6 months, with insider purchases undertaken 32 times and accounting for 1,098,137 shares. Insider sales totaled 444,090 shares over the same period, with these deals completed in 42 transactions. Looking at these numbers, we realize that net purchases over that period are -10.0 shares. Insiders now hold a total of 49.41M shares after the latest sales, with 1.90% net shares purchased.
Insiders own 2.50% of the company shares, while shares held by institutions stand at 7.92% with a share float percentage of 78.79M. Investors are also buoyed by the number of investors in a company, with MRC Global Inc. having a total of 26 institutions that hold shares in the company. The top two institutional holders are FMR, LLC with over 11.1 million shares worth more than $151.36 million. As of Dec 30, 2019, FMR, LLC held 13.63% of shares outstanding.
The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 7.25 million shares as of Dec 30, 2019. The firm’s total holdings are worth over $98.85 million and represent 8.90% of shares outstanding.