Whirlpool Corporation (NYSE:WHR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday.
According to Zacks, “Whirlpool has underperformed the sector in the past three months due to its dismal earnings surprise trend in the recent quarters. Evidently, the company delivered fourth consecutive negative surprise in second-quarter 2017. Further, the company slashed its earnings guidance for 2017 due to higher raw material costs and lower product price/mix in China and Europe. However, Whirlpool has been riding on its innovation strategy that helps it to tap additional sales and gain market share. Moreover, the company's solid integration and cost-productivity activities have been enhancing its performance. These factors, along with the company’s robust brands portfolio, and continued strength across North America and Latin America have been its growth drivers. Also, the company anticipates profitable growth in the EMEA region in the second half of 2017 and expects to navigate through the volatility in emerging markets.”
Other analysts also recently issued reports about the stock. BidaskClub downgraded shares of Whirlpool Corporation from a “strong-buy” rating to a “buy” rating in a report on Tuesday, July 25th. ValuEngine upgraded shares of Whirlpool Corporation from a “hold” rating to a “buy” rating in a report on Monday, October 2nd. Royal Bank Of Canada restated a “buy” rating and issued a $209.00 target price on shares of Whirlpool Corporation in a report on Tuesday, October 10th. MKM Partners set a $177.00 target price on shares of Whirlpool Corporation and gave the stock a “hold” rating in a report on Friday, October 6th. Finally, Credit Suisse Group initiated coverage on shares of Whirlpool Corporation in a report on Thursday, June 22nd. They issued a “neutral” rating and a $208.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and four have assigned a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $192.17.
Whirlpool Corporation (NYSE:WHR) traded up 0.70% during mid-day trading on Wednesday, hitting $177.57. The stock had a trading volume of 259,155 shares. The stock has a market cap of $12.96 billion, a PE ratio of 17.77 and a beta of 1.76. Whirlpool Corporation has a 1-year low of $145.91 and a 1-year high of $202.99. The firm’s 50-day moving average price is $176.02 and its 200-day moving average price is $180.73.
Whirlpool Corporation (NYSE:WHR) last posted its earnings results on Wednesday, July 26th. The company reported $3.35 earnings per share for the quarter, missing analysts’ consensus estimates of $3.54 by ($0.19). Whirlpool Corporation had a return on equity of 18.17% and a net margin of 3.61%. The business had revenue of $5.35 billion during the quarter, compared to the consensus estimate of $5.35 billion. During the same quarter last year, the firm earned $3.50 earnings per share. The business’s quarterly revenue was up 2.9% on a year-over-year basis. On average, equities analysts expect that Whirlpool Corporation will post $14.64 earnings per share for the current year.
Whirlpool Corporation declared that its Board of Directors has approved a stock repurchase plan on Wednesday, July 26th that permits the company to buyback $2.35 billion in outstanding shares. This buyback authorization permits the company to purchase up to 16.7% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.
In other news, Director William D. Perez purchased 1,000 shares of the business’s stock in a transaction that occurred on Monday, July 31st. The shares were bought at an average cost of $176.93 per share, for a total transaction of $176,930.00. Following the acquisition, the director now owns 7,239 shares of the company’s stock, valued at approximately $1,280,796.27. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.69% of the company’s stock.
A number of large investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in Whirlpool Corporation by 0.3% in the 2nd quarter. Vanguard Group Inc. now owns 7,314,502 shares of the company’s stock valued at $1,401,605,000 after buying an additional 23,724 shares during the period. BlackRock Inc. boosted its position in Whirlpool Corporation by 3,484.6% in the 1st quarter. BlackRock Inc. now owns 4,983,869 shares of the company’s stock valued at $853,885,000 after buying an additional 4,844,832 shares during the period. State Street Corp boosted its position in Whirlpool Corporation by 1.7% in the 1st quarter. State Street Corp now owns 3,611,514 shares of the company’s stock valued at $618,757,000 after buying an additional 60,274 shares during the period. Greenhaven Associates Inc. boosted its position in Whirlpool Corporation by 0.6% in the 2nd quarter. Greenhaven Associates Inc. now owns 2,737,150 shares of the company’s stock valued at $524,493,000 after buying an additional 17,280 shares during the period. Finally, Harris Associates L P boosted its position in Whirlpool Corporation by 12.5% in the 2nd quarter. Harris Associates L P now owns 2,180,839 shares of the company’s stock valued at $417,892,000 after buying an additional 241,659 shares during the period. Institutional investors own 91.44% of the company’s stock.
About Whirlpool Corporation
Whirlpool Corporation is a manufacturer and marketer of home appliances. The Company’s segments include North America; Europe, Middle East and Africa (EMEA); Latin America, and Asia. In North America, the Company markets and distributes home appliances and small domestic appliances under a range of brand names.
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