GMS Shares Surge 10.96% on Acquisition Buzz

GMS shares surged 10.96% in pre-market trading on June 30, 2025, driven by significant developments in the company's acquisition landscape. The Home Depot, through its subsidiary SRS Distribution, has entered into an agreement to acquire GMS for approximately $4.3 billion. This move follows The Home Depot's earlier acquisition of SRS, which has positioned it as a leading specialty trade distributor across various verticals, including roofing and landscaping.

Adding to the excitement, QXO, an upstart building materials stock, has also expressed interest in acquiring GMS, potentially sparking a bidding war. This competitive dynamic has further fueled investor enthusiasm, as GMS's stock price target was raised to $95 from $71 by Barclays, reflecting the heightened interest and potential value of the company.

Despite the positive news, Raymond James downgraded GMS Inc. stock amid possible takeover speculation, indicating a cautious approach from some analysts. However, the overall sentiment remains bullish, with GMS Inc. shares soaring on the back of these developments, highlighting the company's strategic importance in the building materials sector.