Insider Trading Report: Transocean (RIG)

Frederik Mohn, a director and major holder at Transocean (RIG), recently picked up 5,000,000 shares. The buy came to a total purchase price of $20.9 million, and represents a 7.4 percent increase.

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  • This is the first insider activity at the company in 2021. Insiders were more active in February and March of 2020, including a number of company directors. Going back further, company insiders were sellers as much as buyers, including trades from company officers.

    Overall, company insiders own nearly 6 percent of company shares.

    Although the share price of the company peaked in March, shares have overall been trending up. The move comes as oil prices have strongly rebounded in the past year to a multi-year high.

    The offshore oil rig company is up nearly 85 percent in the past year, even as the relatively high costs of offshore oil production has made this one of the last companies to play the energy rally.

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  • Action to take: As oil prices trend higher, offshore operations will become increasingly viable. That should continue to keep shares heading higher.

    Currently, the company doesn’t pay a dividend, so investors might want to look elsewhere in the energy space for a yield play. For traders betting on a move higher, the November $4.00 calls are the at-the-money trade. Last going for about $0.80, they’re a leveraged bet on a continued move higher in oil prices and the share price over the summer.

     

    Disclosure: The author of this article has no position in the stock mentioned here, but may trade this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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