Recent Acquisition by PRIMECAP Management (Trades, Portfolio)
On December 31, 2023, PRIMECAP Management (Trades, Portfolio) made a notable addition to its investment portfolio by acquiring 26,630 shares of Whirlpool Corp (WHR, Financial), a leading home appliance manufacturer. This transaction increased the firm's total holdings in Whirlpool to 4,729,936 shares, reflecting a trade price of $121.77 per share. Despite the trade's minimal impact on the portfolio, holding a 0.49% weight, PRIMECAP Management (Trades, Portfolio)'s position in Whirlpool represents a significant 8.62% stake in the company.
Insight into PRIMECAP Management (Trades, Portfolio)
Founded in 1983 and based in Pasadena, CA, PRIMECAP Management (Trades, Portfolio) operates as an independent investment management company. The firm is known for its long-term equity investment results, achieved through a commitment to fundamental research, individual decision-making, and a focus on value. PRIMECAP Management (Trades, Portfolio) employs a multi-counselor investment model, granting each portfolio manager autonomy over a portion of the fund. The firm's investment philosophy centers on identifying undervalued stocks with the potential to outperform the market over a three to five-year horizon, often starting with companies and industries that are currently out of favor. 
Overview of Whirlpool Corp
Whirlpool Corp, with its IPO dating back to September 19, 1955, has grown into a global manufacturer and marketer of home appliances. The company's diverse product range spans across refrigeration, laundry, cooking, and dishwashing segments, with a strong presence in North America, EMEA, Latin America, and Asia. Whirlpool's brand portfolio includes well-known names like KitchenAid, Maytag, and Consul. The company's commitment to innovation and quality has solidified its position in the Furnishings, Fixtures & Appliances industry.
Whirlpool Corp's Financial and Market Performance
As of the latest data, Whirlpool Corp boasts a market capitalization of $5.89 billion, with a current stock price of $107.03. The stock is deemed Significantly Undervalued according to GuruFocus's GF Value, with a GF Value of $156.05 and a price to GF Value ratio of 0.69. Since the trade date, Whirlpool's stock has experienced a -12.1% decline, with a year-to-date performance also in the negative at -12.91%. However, since its IPO, the stock has seen a substantial increase of 454.56%. The company's GF Score stands at 74/100, indicating a potential for average performance in the future. 
PRIMECAP Management (Trades, Portfolio)'s Position in Whirlpool
PRIMECAP Management (Trades, Portfolio)'s current holding of 4,729,936 shares in Whirlpool Corp represents a significant portion of its portfolio. When compared to the firm's other holdings, Whirlpool's 0.49% portfolio weight indicates a moderate but strategic investment by PRIMECAP, which aligns with its investment philosophy of seeking undervalued opportunities with long-term growth potential.
Sector and Industry Analysis
PRIMECAP Management (Trades, Portfolio)'s top sectors include Technology and Healthcare, with leading positions in companies like Amgen Inc (AMGN, Financial) and Eli Lilly and Co (LLY, Financial). Whirlpool's industry dynamics are characterized by steady demand for home appliances and a competitive landscape where innovation and brand strength play crucial roles. PRIMECAP's investment in Whirlpool suggests a confidence in the company's competitive positioning within the Furnishings, Fixtures & Appliances sector.
Other Prominent Investors in Whirlpool
Markel Gayner Asset Management Corp stands as the largest guru shareholder in Whirlpool Corp, while other notable investors include HOTCHKIS & WILEY, Mario Gabelli (Trades, Portfolio), and Charles Brandes (Trades, Portfolio). These investments by respected gurus underscore the attractiveness of Whirlpool as an investment opportunity within the value investing community.
Conclusion
PRIMECAP Management (Trades, Portfolio)'s recent acquisition of additional shares in Whirlpool Corp is a strategic move that aligns with the firm's long-term value investment approach. Despite the stock's recent performance dip, Whirlpool's strong fundamentals, as indicated by its GF Value Rank of 10/10 and Profitability Rank of 7/10, suggest potential for future growth. The transaction not only reinforces PRIMECAP's confidence in Whirlpool but also highlights the company's financial health and market valuation indicators, which may have significant implications for both the firm's portfolio and Whirlpool's stock trajectory.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
