These 2 Stocks Are Circling the Drain: Transocean Ltd. (RIG), Ensco plc (ESV)

Transocean Ltd. (NYSE:RIG) recorded -18.16% downtrend from the beginning of this year till date. The 12-month potential price target for Transocean Ltd. is set at $14.54. This target means that the stock has an upside potential to increase by 66.36% from the current trading price. The stock of RIG went down by -$0.58 now trading at $8.74. Their shares witnessed a 0.46% increase from the 52-week low price of $8.7 they recorded on 2018-12-06. Even though it is still -65.56% behind the $14.47 high touched on 2018-10-09. The last few days have been rough for the stock, as its price has decreased by -8.86% during the week. It has also performed poorly over the past three months, as it lost around -19.3% while it has so far retreated around -18.01% during the course of a year.

When giving their opinion, around 58.62% of Wall Street analysts, which represents 17 out of 29 rated the stock as a Buy. 7 brokerage firms of the remaining 24.14% rated the stock as a Hold with 5 analyst rating it as a sell. Overall, the number of aggregate RIG shares held by institutional investors represents 86.2% of total shares. 64 institutions entered new Transocean Ltd. (NYSE:RIG) positions, 205 added to their existing positions in these shares, 204 lowered their positions, and 61 exited their positions entirely.

Transocean Ltd. (RIG) trade volume has increased by 239.83% as around 51,778,571 shares were sold when compared with its 50-day average volume of traded shares which is 15,236,442. At the moment, RIG is witnessing a downtrend, as it is trading -10.36% below its 20-day SMA, -23.58% below its 50-day SMA, and -25.55% below its 200-day SMA. The company runs an ROE of roughly -14.8%, with financial analysts predicting that their earnings per share growth will be around 0% per annum for the next five year. This will be compared to the -40% decrease witnessed over the past five years.

The first technical resistance point for Transocean Ltd. (NYSE:RIG) will likely come at $9.07, marking a 3.64% premium to the current level. The second resistance point is at $9.41, about 7.12% premium to its current market price. On the other hand, inability to breach the immediate hurdles can drag it down to $8.03, the lower end of the range. RIG’s 14-day MACD is -0.06 and this negative figure indicates a downward trading trend. The company’s 14-day RSI (relative strength index) score is 36.51, which shows that its stock has been neutral. The 20-day historical volatility for the stock stands at 71.86 percent, which is high when compared to that of the 50-day’s 56.72 percent.

The shares of Ensco plc (NYSE:ESV) has decreased by -11.36%, and now trading at $5.15 on the Wall Street in the intra-day deal, with their shares traded now around 26,431,724. This is a rise of 12,956,514 shares over the average 13,475,210 shares that were traded daily over the last three months. The stock that is trading at $5.15 went higher by 25.61% from its 52-week low of $4.1 that it attained back on 2018-03-02. The stock recorded a 52-week high of $9.51 nearly 59 days ago on 2018-10-09.

ESV stock hasn’t performed well over the past 30 days, as it lost -29.74% while its price plunged by -12.86% year-to-date (YTD). Looking at the last few days, it has been tough for the stock, as it tumbled -15.02% over the last week. The stock’s 12-month potential target price is now at $8.86. This means that the stock price might likely increase by 72.04% from its current trading price.16 out of 28 Wall Street analysts which represents 57.14% rated the stock as a buy while the remaining 32.14 rated it as a hold, with 10.71 of analysts rating it as a sell.

Ensco plc (NYSE:ESV) has been utilizing an ROE that is roughly -7.6%, with stock analysts predicting that the company’s EPS for the next five years will go down by 0% per year, following the -17% drop that was witnessed during the past five years. The stock at the moment is on a downtrend, trading -19.19% below its 20-day SMA, -30.54% below its 50-day SMA, and -21.15% below its 200-day SMA. In percentage terms, the aggregate Ensco plc shares held by institutional investors is 89.8%. 58 institutions jumped in to acquire Ensco plc (ESV) fresh stake, 153 added to their current holdings in these shares, 158 lowered their positions, and 43 left no stake in the company.

The stock’s 9-day MACD is -0.22 and this negative figure indicates a downward trading trend. The company’s 9-day RSI score is 29.12, which shows that its stock has been oversold. The 20-day historical volatility for the shares stand at 83.11 percent, which is more when compared to that of the 50-day’s 66.93 percent. On the daily chart, we see that the stock could reach the first level of resistance at $5.48, sporting a 6.02% premium to the current level. The next resistance point is at $5.81, representing nearly 11.36% premium to the current market price of Ensco plc (ESV). On the other hand, failure to breach the immediate hurdles can drag it down to $4.71, the lower end of the range.