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Sep 04, 2018
Transocean To Acquire Ocean Rig

Transocean To Acquire Ocean Rig

On Tuesday, offshore drilling contractor company Transocean Ltd. agreed to buy Ocean Rig UDW Inc. in a cash and stock transaction valued at around $2.7 billion, inclusive of Ocean Rig's net debt.

1.6128 newly issued Transocean shares and $12.75 in cash will be exchanged for each Ocean Rig share. That places Ocean Rig’s per share value at $32.28, or a 19.2% premium (based on Friday’s closing price). Transocean intends to fund the deal with a combination of cash and fully committed financing provided by Citi.

Related Ticker: RIG

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


Aroon Indicator for RIG shows an upward move is likely

RIG's Aroon Indicator triggered a bullish signal on September 11, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 213 similar instances where the Aroon Indicator showed a similar pattern. In 179 of the 213 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 84%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.

RIG moved above its 50-day moving average on August 10, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for RIG crossed bullishly above the 50-day moving average on August 13, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 78%.

Following a +7.06% 3-day Advance, the price is estimated to grow further. Considering data from situations where RIG advanced for three days, in 230 of 281 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.

Bearish Trend Analysis

The 10-day RSI Indicator for RIG moved out of overbought territory on September 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 similar instances where the indicator moved out of overbought territory. In 23 of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at 88%.

The Momentum Indicator moved below the 0 level on September 11, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on RIG as a result. In 75 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 87%.

The Moving Average Convergence Divergence Histogram (MACD) for RIG turned negative on September 08, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 40 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 83%.

The 50-day moving average for RIG moved below the 200-day moving average on August 12, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where RIG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.

RIG broke above its upper Bollinger Band on September 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating fairly steady price growth. RIG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 67 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: RIG's P/B Ratio (0.727) is slightly lower than the industry average of (1.592). P/E Ratio (0.000) is within average values for comparable stocks, (341.700). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.755). RIG has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.025). P/S Ratio (1.429) is also within normal values, averaging (1.811).

The Tickeron Profit vs. Risk Rating rating for this company is 77 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RIG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock worse than average.

The Tickeron PE Growth Rating for this company is 83 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is 95 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

Notable companies

The most notable companies in this group are Transocean Ltd (NYSE:RIG), Valaris Limited (NYSE:VAL).

Industry description

The contract drilling industry includes companies that provide onshore and offshore drilling services to the energy sector. Services are delivered on a contractual or per-fee basis. Customers of this industry include major and independent oil and gas companies. Strong oil demand could potentially boost contract fees. Helmerich & Payne, Inc., Transocean Ltd and Patterson-UTI Energy, Inc. are among the major drilling companies in the U.S.

Market Cap

The average market capitalization across the Contract Drilling Industry is 3.65B. The market cap for tickers in the group ranges from 21.2K to 7.01B. NE holds the highest valuation in this group at 7.01B. The lowest valued company is EXLA at 21.2K.

High and low price notable news

The average weekly price growth across all stocks in the Contract Drilling Industry was -4%. For the same Industry, the average monthly price growth was -0%, and the average quarterly price growth was -7%. SOC experienced the highest price growth at 9%, while BORR experienced the biggest fall at -6%.

Volume

The average weekly volume growth across all stocks in the Contract Drilling Industry was 1%. For the same stocks of the Industry, the average monthly volume growth was -23% and the average quarterly volume growth was -25%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 60
P/E Growth Rating: 37
Price Growth Rating: 45
SMR Rating: 79
Profit Risk Rating: 63
Seasonality Score: 3 (-100 ... +100)
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General Information

a provider of offshore contract drilling services for oil and gas wells

Industry ContractDrilling

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Industry
Contract Drilling
Address
Turmstrasse 30
Phone
+41 417490500
Employees
5600
Web
https://www.deepwater.com
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