Whirlpool (NYSE:WHR) Shares Gap Up Following Strong Earnings

Whirlpool Co. (NYSE:WHR) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $99.28, but opened at $106.04. Whirlpool shares last traded at $108.81, with a volume of 586,560 shares changing hands.

The company reported $3.43 earnings per share for the quarter, beating analysts’ consensus estimates of $2.99 by $0.44. Whirlpool had a net margin of 2.89% and a return on equity of 27.67%. The company had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $4.09 billion. During the same quarter in the previous year, the company earned $5.45 EPS. Whirlpool’s revenue for the quarter was down 18.9% on a year-over-year basis.

Whirlpool Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Sunday, December 15th. Investors of record on Friday, November 15th will be paid a dividend of $1.75 per share. This represents a $7.00 annualized dividend and a yield of 6.73%. The ex-dividend date is Friday, November 15th. Whirlpool’s dividend payout ratio (DPR) is presently 72.39%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Royal Bank of Canada cut their price objective on shares of Whirlpool from $76.00 to $74.00 and set an “underperform” rating for the company in a report on Friday. Bank of America raised their target price on shares of Whirlpool from $101.00 to $103.00 and gave the company an “underperform” rating in a research note on Friday. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company. According to MarketBeat.com, Whirlpool presently has a consensus rating of “Hold” and a consensus price target of $107.00.

Insiders Place Their Bets

In other news, EVP Juan Carlos Puente sold 3,266 shares of the stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $100.00, for a total transaction of $326,600.00. Following the completion of the transaction, the executive vice president now directly owns 19,070 shares in the company, valued at approximately $1,907,000. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.05% of the company’s stock.

Institutional Trading of Whirlpool

Several hedge funds have recently made changes to their positions in the business. Financial Advocates Investment Management bought a new stake in Whirlpool during the third quarter worth approximately $209,000. Integrated Advisors Network LLC purchased a new position in shares of Whirlpool in the 3rd quarter worth approximately $309,000. Pallas Capital Advisors LLC bought a new position in shares of Whirlpool during the 3rd quarter valued at approximately $375,000. Nisa Investment Advisors LLC raised its holdings in Whirlpool by 5.7% during the 3rd quarter. Nisa Investment Advisors LLC now owns 18,701 shares of the company’s stock valued at $2,001,000 after buying an additional 1,002 shares during the period. Finally, State of Alaska Department of Revenue lifted its position in Whirlpool by 7.2% in the third quarter. State of Alaska Department of Revenue now owns 6,397 shares of the company’s stock worth $684,000 after buying an additional 430 shares during the last quarter. 90.78% of the stock is currently owned by hedge funds and other institutional investors.

Whirlpool Price Performance

The company has a quick ratio of 0.58, a current ratio of 0.96 and a debt-to-equity ratio of 1.88. The company has a market capitalization of $5.71 billion, a PE ratio of 10.76 and a beta of 1.44. The firm’s 50 day simple moving average is $102.00 and its 200 day simple moving average is $98.88.

About Whirlpool

Whirlpool Corporation manufactures and markets home appliances and related products and services in the North America, Europe, the Middle East, Africa, Latin America, and Asia. The company's principal products include refrigerators, freezers, ice makers, and refrigerator water filters; laundry appliances, and commercial laundry products and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers.