Transocean (NYSE:RIG) stock gained 1.5% in Monday’s pre-market trading. The upside came as the company’s corporate insider recently purchased RIG’s shares worth about $12 million. RIG provides offshore contract drilling services to the oil and gas industry.
According to the SEC filing, Fredrik Wilhelm Mohn, a director and more-than-10% owner of Transocean, bought 2 million shares on May 15 at an average price of $6.01. It’s important to note that Mohn indirectly owns these shares. The concerned shares are held directly by Perestroika (Cyprus) Ltd., a wholly-owned subsidiary of Perestroika AS.
In addition, Mohn acquired 36,145 restricted units under the issuer’s long-term incentive plan. These units are equivalent to registered shares on a one-for-one basis. Further, the units will vest on either May 17, 2025, or at the next Annual General Meeting after the grant date, whichever comes first.
Bullish Insider Trading Signal
Overall, TipRanks’ Insider Trading Activity Tool shows that insider confidence in Transocean stock is currently Very Positive. Corporate insiders have bought RIG stock worth $50.7 million over the last three months.
Investors could keep close track of these notable insider activities, as they reflect the perceptions of key insiders about the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is RIG a Good Stock to Buy?
Overall, analysts have a Hold consensus rating on Transocean based on four Buys, three Holds, and two Sells assigned in the past three months. Furthermore, analysts’ average price target on RIG stock of $7.88 per share implies 30.7% upside potential. Shares of the company have gained 20% in the past three months.
Interestingly, investors considering RIG stock could follow Evercore ISI analyst James West. He is the best analyst covering the stock (in a one-year timeframe). He boasts an average return of 18.81% per rating and a 50% success rate. Click on the image below to learn more.
