Truist Financial Analyst Maintains Hold Rating on GMS with $106.43 Price Target

Truist Financial analyst Keith Hughes maintains a Hold rating for GMS with a $106.43 price target, a -3.11% downside from current levels. Hughes has a top 100 analyst rating with an average return of 20.0% and a 66.05% success rate. GMS reported a quarterly revenue of $1.33 billion and a net profit of $26.09 million, compared to $1.41 billion and $56.39 million last year. Corporate insider sentiment is negative, with an increase in insiders selling shares.

GMS Inc. (GMS) released its first-quarter earnings report, showing a decline in both earnings and revenue compared to the same period last year. The company's earnings for the period dropped to $43.56 million, or $1.13 per share, down from $57.25 million, or $1.42 per share, in the same period last year [1]. Adjusted earnings, excluding items, stood at $68.05 million or $1.76 per share, reflecting a 4.6% decline year-over-year.

Revenue for the quarter fell 2.3% to $1.414 billion from $1.448 billion last year, highlighting a decrease in sales [1]. Despite the decline, the company's adjusted earnings per share (EPS) of $1.76 was higher than the $1.42 reported last year, indicating that operational efficiency may have improved.

The negative sentiment among corporate insiders is evident, with an increase in insider selling. Over the past 24 months, insiders have sold a total of 422,894 GMS shares for a total of $44,910,202.89, compared to 3,650 shares purchased for $255,500.00 [2]. This trend suggests a bearish sentiment among insiders, which could potentially impact the stock price.

The Home Depot has announced receipt of clearance from the Canadian Competition Bureau for its acquisition of GMS Inc. The no action letter from the Canadian Competition Bureau satisfies the remaining antitrust law-related condition necessary for the consummation of the tender offer [3]. The acquisition price is $110.00 per share, with the tender offer set to expire on September 3, 2025.

Truist Financial analyst Keith Hughes maintains a Hold rating for GMS with a price target of $106.43, a -3.11% downside from current levels [4]. Hughes' top 100 analyst rating and average return of 20.0% with a 66.05% success rate add credibility to his analysis.

References:

[1] https://www.nasdaq.com/articles/gms-inc-q1-profit-drops
[2] https://www.marketbeat.com/stocks/NYSE/GMS/insider-trades/
[3] https://www.morningstar.com/news/pr-newswire/20250829cl61734/the-home-depot-announces-receipt-of-clearance-from-the-canadian-competition-bureau-for-acquisition-of-gms-inc
[4] https://www.trust.com/analysts/keith-hughes