What Happened?
Shares of home appliances manufacturer Whirlpool (NYSE: WHR) jumped 4.6% in the morning session after investors reacted to news that famed investor David Tepper's hedge fund, Appaloosa LP, disclosed a significant new stake in the company. According to regulatory filings, Appaloosa added over 5.2 million shares of Whirlpool during the third quarter, increasing its position by more than 1,900%. The fund's total holding stood at 5.5 million shares, which was valued at approximately $430 million. This substantial investment made the appliance maker one of Appaloosa's largest holdings and gave the fund a 9.8% ownership stake in the company. Such a large buy-in from a well-regarded institutional investor signaled confidence in a company's prospects, which encouraged other investors.
After the initial pop the shares cooled down to $68.99, up 4.5% from previous close.
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What Is The Market Telling Us
Whirlpool’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock dropped 19.6% on the news that the company reported underwhelming fourth quarter results. Its revenue missed, and its full-year adjusted EPS guidance missed significantly. Top-line growth was weakened by the recent sale of its European business amid efforts to improve its cost structure. Overall, this was a weaker quarter.
Whirlpool is down 40% since the beginning of the year, and at $68.99 per share, it is trading 48.2% below its 52-week high of $133.14 from January 2025. Investors who bought $1,000 worth of Whirlpool’s shares 5 years ago would now be looking at an investment worth $365.81.
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