Whirlpool Target of Unusually Large Options Trading (NYSE:WHR)

Key Points

• Whirlpool saw unusually heavy bearish options activity on Monday, with investors buying 22,147 put options — about 280% above the normal volume. That suggests traders were positioning for downside in the stock.
• Analysts remain cautious on WHR, with several firms cutting ratings or price targets, including Weiss lowering it to sell and JPMorgan trimming its target to $52. MarketBeat says the stock’s average rating is “Reduce.”
• Whirlpool shares have been under pressure after weak results: the company reported a quarterly EPS loss and revenue below expectations, while the stock fell to $41.37, near its 52-week low. The company also offers a high dividend yield of 8.7%, though its payout ratio is elevated at 122.45%.

Whirlpool Corporation (NYSE:WHR - Get Free Report) was the recipient of some unusual options trading on Monday. Investors acquired 22,147 put options on the stock. This is an increase of 280% compared to the typical volume of 5,832 put options.

Institutional Investors Weigh In On Whirlpool

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. RWWM Inc. increased its holdings in shares of Whirlpool by 191.6% in the first quarter. RWWM Inc. now owns 2,422,618 shares of the company's stock valued at $130,628,000 after buying an additional 1,591,849 shares in the last quarter. Norges Bank bought a new position in shares of Whirlpool in the fourth quarter valued at $31,959,000. Freestone Grove Partners LP bought a new position in shares of Whirlpool in the fourth quarter valued at $22,729,000. Orion Porfolio Solutions LLC increased its holdings in shares of Whirlpool by 2,795.1% in the second quarter. Orion Porfolio Solutions LLC now owns 234,564 shares of the company's stock valued at $23,789,000 after buying an additional 226,462 shares in the last quarter. Finally, Newport Trust Company LLC increased its holdings in shares of Whirlpool by 10.2% in the fourth quarter. Newport Trust Company LLC now owns 2,391,252 shares of the company's stock valued at $172,505,000 after buying an additional 221,564 shares in the last quarter. Institutional investors own 90.78% of the company's stock.

Analyst Ratings Changes

Several analysts recently weighed in on WHR shares. Weiss Ratings lowered Whirlpool from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday. JPMorgan Chase & Co. lowered their price objective on Whirlpool from $59.00 to $52.00 and set a "neutral" rating for the company in a report on Monday. Raymond James Financial reissued a "market perform" rating on shares of Whirlpool in a report on Monday, March 16th. BNP Paribas Exane upgraded Whirlpool to a "neutral" rating in a research note on Monday, March 16th. Finally, Royal Bank Of Canada decreased their target price on Whirlpool from $37.00 to $32.00 and set an "underperform" rating for the company in a research note on Friday. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, Whirlpool has an average rating of "Reduce" and an average price target of $68.89.

Whirlpool Price Performance

NYSE:WHR traded down $3.59 during midday trading on Monday, hitting $41.37. 2,701,485 shares of the stock were exchanged, compared to its average volume of 2,631,385. Whirlpool has a one year low of $41.15 and a one year high of $111.96. The company has a market capitalization of $2.68 billion, a price-to-earnings ratio of 14.07, a P/E/G ratio of 10.43 and a beta of 1.23. The business has a 50-day moving average price of $56.65 and a two-hundred day moving average price of $70.43. The company has a current ratio of 0.88, a quick ratio of 0.48 and a debt-to-equity ratio of 1.48.

Whirlpool (NYSE:WHR - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported ($0.56) EPS for the quarter, missing the consensus estimate of $0.43 by ($0.99). Whirlpool had a return on equity of 7.68% and a net margin of 1.08%.The firm had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.44 billion. During the same period in the previous year, the firm earned $1.70 EPS. Whirlpool's revenue for the quarter was down 9.6% on a year-over-year basis. Whirlpool has set its FY 2026 guidance at 3.000-3.500 EPS. Sell-side analysts predict that Whirlpool will post 4.31 EPS for the current year.

Whirlpool Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Friday, February 27th were issued a dividend of $0.90 per share. The ex-dividend date of this dividend was Friday, February 27th. This represents a $3.60 annualized dividend and a yield of 8.7%. Whirlpool's payout ratio is presently 122.45%.

About Whirlpool

Whirlpool Corporation is a leading global manufacturer and marketer of home appliances, with a product portfolio that spans major categories such as laundry, refrigeration, cooking, dishwashing and small electrics. Headquartered in Benton Harbor, Michigan, the company designs, produces and distributes its appliances through a network of wholly owned manufacturing facilities, joint ventures and third-party partners. Whirlpool serves both retail and professional markets, offering products under its flagship Whirlpool brand as well as several well-known names including Maytag, KitchenAid, JennAir, Amana, Brastemp and Consul.

In its laundry segment, Whirlpool provides top- and front-load washing machines, dryers and combination units designed to balance energy efficiency, capacity and convenience.

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