Potential Transocean Ltd. (NYSE:RIG) shareholders may wish to note that the Independent Chairman of the Board, Chadwick Deaton, recently bought US$124k worth of stock, paying US$3.55 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 135%, potentially signalling some real optimism.
Transocean Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive VP Howard Davis bought US$623k worth of shares at a price of US$6.35 per share. That means that even when the share price was higher than US$3.01 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Howard Davis was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 185.25k shares for US$1.0m. But insiders sold 98049 shares worth US$620k. In total, Transocean insiders bought more than they sold over the last year. Their average price was about US$5.55. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Transocean is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Transocean Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Transocean insiders own 5.9% of the company, currently worth about US$123m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Transocean Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Transocean insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Of course, the future is what matters most. So if you are interested in Transocean, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.