Fund Takes Bold New Position: Is Transocean Stock a Good Buy?

RIG +6.17%

Key Points

• Acquired 6,000,000 shares, increasing portfolio value by an estimated $18.7 million

• New stake represents 2.5% of Ninepoint’s 13F reportable assets under management (AUM)

• Post-trade stake: 6,000,000 shares worth $18.7 million, placing Transocean outside the fund’s top five holdings

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On November 12, 2025, Ninepoint Partners LP disclosed a new position in Transocean (NYSE:RIG), acquiring 6,000,000 shares valued at approximately $18.7 million.

What Happened

Ninepoint Partners LP reported a new position in Transocean, acquiring 6,000,000 shares valued at $18.7 million as of September 30, 2025. The transaction was disclosed in the fund’s quarterly Form 13F, filed with the Securities and Exchange Commission on November 12, 2025. The new stake reflects normal trading activity for the fund, which reported 131 positions and $724.5 million in U.S. equity holdings.

What Else to Know

This is a new position for Ninepoint Partners LP, representing 2.6% of its 13F reportable AUM.

Top holdings after the filing:

• NASDAQ:EXE: $95.6 million (13.2% of AUM)

• NYSE:AR: $75.5 million (10.4% of AUM)

• NYSE:RRC: $75.3 million (10.4% of AUM)

• NYSE:EQT: $65.6 million (9.1% of AUM)

• NYSE:CVE: $60.1 million (8.3% of AUM)

As of November 11, 2025, shares of Transocean were priced at $4.23, down 6.0% over the past year, shares have underperformed the S&P 500 by 19.6 percentage points.

Company Overview

Metric

Value

Price (as of market close November 11, 2025)

$4.23

Market capitalization

$3.75 billion

Revenue (TTM)

$3.87 billion

Net income (TTM)

($2.93 billion)

Company Snapshot

• Provides offshore contract drilling services, leasing a fleet of mobile offshore drilling units and related equipment for oil and gas exploration and production

• Provides offshore drilling services under contracts with energy companies for the use of its drilling rigs and crews

• Serves integrated energy companies, government-owned oil companies, and independent energy producers operating in global offshore markets

Transocean operates a large, specialized fleet of ultra-deepwater and harsh environment drilling rigs, positioning it as a leading provider of offshore drilling services worldwide. Its business model is anchored in multi-year contracts with major oil and gas producers, providing relative revenue visibility despite cyclical industry conditions. The company’s competitive advantage lies in technical expertise and a modern fleet capable of operating in challenging offshore environments.

Foolish Take

Ninepoint Investment Partners, a Toronto-based investment management firm, recently acquired approximately $18.7 million worth of Transocean stock. Here's what investors need to know about this transaction.

First off, this is a significant institutional purchase. According to the filing, Transocean stock is now the firm's eighth-largest position overall, after having no position in the stock in the prior quarter. Clearly, this means that Ninepoint's portfolio managers have taken a shine to Transocean and are quite bullish on the stock.

As for performance, Transocean stock has lagged the broader market for some time. Over the last three years, the stock is almost unchanged, having delivered a total return of -1%. Meanwhile, the S&P 500 has generated a total return of 74% over the same period.

Nevertheless, there are hopeful signs for the company. For one, its balance sheet has seen steady improvement over the last few years, with net debt dropping from a three-year high of $6.9 billion to under $5.0 billion today. Moreover, the company recently reported solid third-quarter earnings results which topped analyst estimates for both revenue and earnings per share (EPS).

At any rate, retail investors should remain cautious with Transocean stock. The company is unprofitable -- Transocean hasn't been consistently profitable since 2016 -- making its stock unsuitable for some investors.

Glossary

Stake: The amount of ownership or investment a fund or investor holds in a particular company.

13F: A quarterly report filed by institutional investment managers to disclose their equity holdings to the Securities and Exchange Commission (SEC).

AUM (Assets Under Management): The total market value of assets that an investment firm manages on behalf of clients.

Portfolio: A collection of financial assets such as stocks, bonds, or funds held by an investor or institution.

Position: The amount of a particular security or asset owned by an investor or fund.

Quarterly filing: A regular report submitted by companies or funds, typically every three months, detailing financial or investment information.

Mobile offshore drilling unit: A movable platform or rig used for drilling oil and gas wells in offshore locations.

Ultra-deepwater: Refers to offshore drilling operations conducted at water depths greater than 1,500 meters (about 5,000 feet).

Harsh environment drilling rigs: Specialized rigs designed to operate in challenging offshore conditions, such as extreme weather or icy waters.

Multi-year contracts: Agreements between companies and clients that last for several years, providing longer-term revenue stability.

TTM: The 12-month period ending with the most recent quarterly report.

Equity holdings: Investments in the ownership shares of companies, such as stocks, held by a fund or investor.

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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EQT. The Motley Fool recommends Transocean. The Motley Fool has a disclosure policy.

Fund Takes Bold New Position: Is Transocean Stock a Good Buy? was originally published by The Motley Fool