One of Transocean’s (RIG) key corporate insiders recently purchased $6.2 million worth of the company’s shares. This significant insider move is often considered a positive signal, reflecting confidence in the company’s prospects.
Transocean provides offshore contract drilling services to the oil and gas industry. For a thorough assessment of RIG stock, go to TipRanks’ Stock Analysis page.
The Insider Remains Bullish on Transocean Stock
According to the SEC filing, Fredrik Wilhelm Mohn, a director and more-than-10% owner of Transocean, bought 1.5 million shares on September 12 at an average price of $4.13.
Interestingly, this is Mohn’s fourth informative buy transaction in 2024 so far. Before this, he bought RIG stock worth $10.46 million and $12.02 million in August and May, respectively. Additionally, Mohn purchased the company’s shares worth $4.89 million in February.
It’s important to highlight that Mohn indirectly owns these shares. All the purchased shares are held directly by Perestroika (Cyprus) Ltd., a wholly-owned subsidiary of Perestroika AS, of which Mohn is the sole director and owner.
Investors should note that keeping tabs on insider trades can be insightful, as they often signal the confidence of key executives in the company’s performance. Thus, 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.
Hedge Funds Are Optimistic About RIG Stock
Just like Mohn, the hedge funds are also optimistic about Transocean’s future. In the last quarter, hedge funds increased their holdings in the stock by 4.6 million shares. As a result, the stock has a Positive hedge fund confidence signal on TipRanks, as indicated by the graphic below.
Is RIG a Good Stock to Buy?
Turning to Wall Street, RIG stock has a Moderate Buy consensus rating based on three Buys, three Holds, and one Sell assigned in the last three months. At $6.50, the average Transocean price target implies a 57.38% upside potential. Shares of the company have declined 28.42% in the past six months.
