Analyst Downgrades: Manitowoc Company Inc, Transocean LTD, and Diamond Offshore Drilling Inc

Analysts downwardly revised their ratings and price targets on Manitowoc Company Inc (NYSE:MTW), Transocean LTD (NYSE:RIG), and Diamond Offshore Drilling Inc (NYSE:DO)

Josh Selway

Aug 12, 2016 at 10:18 AM

Analysts are weighing in on heavy machinery maker Manitowoc Company Inc (NYSE:MTW), as well as drilling stocks Transocean LTD (NYSE:RIG) and Diamond Offshore Drilling Inc (NYSE:DO). Here's a quick roundup of today's bearish brokerage notes on MTW, RIG, and DO.

MTW is mostly flat this morning at $4.75, following a price-target cut to $4.50 from $6 at UBS. Despite a recent bear gap, the shares are almost 47% higher in 2016, but short interest remains elevated. Specifically, 11.4% of Manitowoc Company Inc's total float is sold short, and, at the stock's average trading volumes, it would take these bears a full week to cover their positions.

RBC lowered its price target on RIG to $11 from $14, and the stock has since dropped 1.4% to trade at $10.23. Longer term, Transocean LTD has been shaky at best, losing more than 17% year-to-date. As such, options traders have taken a bearish approach at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The stock's 10-day put/call volume ratio across these exchanges comes in at 1.41, meaning put buying has had a clear advantage to call buying.

DO has slipped 1.3% at $20.48, following a price-target cut to $23 from $29 at RBC. The stock is currently hovering just 3% below its year-to-date breakeven level, and analysts certainly aren't expecting much from the shares. By the numbers, 14 of 16 covering brokerage firms rate Diamond Offshore Drilling Inc a "hold" or worse, and the stock's average 12-month price targets sits right overhead at $21.10.

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

Follow @Schaeffers

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade. Professional traders have rushed into the market and are making a mint. Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.