Appaloosa Sells Whirlpool Shares Amid Slide in Stock Price
Appaloosa has divested 1.59 million shares of Whirlpool stock in the fourth quarter, with the transaction finalized on February 17, 2026. This move was valued at approximately $117.38 million, based on average prices during that period. Notably, the fund’s overall positions took a hit, decreasing by about $150.23 million, driven by stock sales and market fluctuations.
Post-transaction, Appaloosa’s ownership in Whirlpool accounted for 4.07% of reportable assets, a decrease from 5.85% in the previous quarter.
As of March 19, 2026, Whirlpool’s stock was priced at $54.04, reflecting a hefty drop of 42.02% over the last year and underperforming the S&P 500 by 59 percentage points.
| Metric | Value |
|---|---|
| Revenue (TTM) | $15.53 billion |
| Net profit (TTM) | $340 million |
| Dividend yield | 6.66% |
| Price (as of March 19, 2026) | $54.04 |
- Whirlpool manufactures major home appliances, including refrigerators and washing machines, primarily under recognizable brands like Whirlpool, Maytag, KitchenAid, and JennAir.
- The company generates revenue via consumer electronics and accessories sold through diverse channels, including retailers and direct-to-consumer sales worldwide.
- Significant customers range from large retail chains to independent dealers across North America, EMEA, Latin America, and Asia.
Whirlpool is noted as a leading name in consumer electronics, boasting a wide array of products and strong brand recognition. The company’s strategy involves leveraging its substantial distribution network to maintain a steady revenue stream across various markets.
Initially, David Tepper and Appaloosa acquired a hefty 5.5 million shares in Whirlpool, which represented about 10% ownership. However, as stock prices plummeted—around 79% since their all-time highs in 2021—they began selling, albeit at a loss. With dividend cuts and ongoing struggles due to tariff issues and weak consumer spending, the company faces significant financial hurdles, including a $6 billion net debt against a market cap of just $3.5 billion.
Recently, Whirlpool raised $800 million through a stock offering priced around $69 per share. This was a necessary step to handle financial obligations, but the market conditions made it less than ideal. Following this offering, Appaloosa also filed for SC 13D in February and offloaded another 717,000 shares, indicating potential concerns about dilution.
Even with declining EBITDA and trading at just 9x EV/EBITDA, some believe Whirlpool might still turn into a valuable investment. Yet, personally, I’d prefer to see signs of recovery before diving in. The management forecasts a 5% growth in like-for-like sales in 2026, along with expected EPS of $7 and free cash flow of $450 million. While I acknowledge the brand’s potential, I’d rather wait for a clearer upward trend before making any commitments, and it’s easy to understand Appaloosa’s cautious stance given the current climate.
If you’re considering Whirlpool stock, make sure to think it through carefully.
