Latest news with #QXO
Yahoo
2 days ago
- Business
- Yahoo
QXO (QXO) Falls 7.23% After $2-Billion Share Sale
We recently published . QXO, Inc. (NYSE:QXO) is one of the worst-performing stocks on Wednesday. QXO declined by 7.23 percent on Wednesday to close at $21.81 apiece as investors soured on its plans to raise $2 billion through a share sale program. In a statement on Tuesday, QXO, Inc. (NYSE:QXO) said that proceeds from the offer will be used for general corporate purposes, which may include funding future business acquisitions. While no deal has yet to be finalized, it can be recalled that QXO, Inc. (NYSE:QXO) late last week announced plans to acquire GMS Inc. for $5 billion. The proposed transaction will cover all outstanding shares at a price of $95.20 apiece. QXO, Inc. (NYSE:QXO) remains in a bidding war with Home Depot Inc. for the acquisition of GMS. In relation to the share sale, the company will grant its underwriters an option to purchase up to an additional $300 million of shares of common stock at the public offering price. Goldman Sachs & Co. LLC, Morgan Stanley, and Wells Fargo Securities are acting as underwriters for the Offering. While we acknowledge the potential of QXO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
2 days ago
- Business
- Yahoo
Raymond James downgrades GMS Inc. stock amid possible takeover speculation
- A surge in GMS shares following recent speculation around a potential bidding war has left the risk-to-reward profile of the stock more "balanced," analysts at Raymond James said in a note downgrading their rating of the building-products distributor. Last week, the Wall Street Journal reported that DIY chain Home Depot (NYSE:HD) was making an offer for GMS, citing people familiar with the matter. However, the exact price or timing of Home Depot's bid could not be determined, the WSJ noted. Home Depot also declined to comment on the rumors. The report came one day after serial dealmaker Brad Jacobs' QXO announced it had submitted its own unsolicited proposal to purchase GMS for roughly $5 billion, or $95.20 a share in cash. Georgia-based GMS, which supplies tools and building materials for consumers and contractors, confirmed that it had received QXO's offer and would review it. GMS has been at the center of recent speculation over a potential takeover, as firms look to take advantage of a recent need for more housing in spite of tariff-related economic uncertainty. Last year, Home Depot notched a deal to snap up SRS Distribution, a seller of professional roofing goods, for $18.25 billion, including debt, betting on increased spending by contractors and construction businesses. Shares in GMS, which had already spiked in recent weeks, soared by more than 30% over the five trading days ending on Tuesday, when the stock price finished at $99.69. Its market capitalization now stands at nearly $3.8 billion. Lowering their rating of GMS to "market perform" from "outperform," the strategists said that, with the firm's shares now trading at a level higher than QXO's offer price, there is "limited incentive for another buyer to put forth a bid well above" where the stock currently stands. They added that, given "the unlikelihood of QXO to raise its offer even in the event of an over-the-top bid, we now view the risk/reward as more balanced." "While there are other potential buyers who could have interest in GMS, we view buyer involvement outside of QXO [or] Home Depot to be unlikely," the analysts wrote. Related articles Raymond James downgrades GMS Inc. stock amid possible takeover speculation Coinbase target raised to 'Street High' at Bernstein, calling it 'misunderstood' Loop Capital lifts Nvidia target to street high of $250 on AI chip spending Sign in to access your portfolio
The Star
3 days ago
- Business
- The Star
QXO seeks US$2bil in share sale
QXO chairman and CEO Brad Jacobs. — Bloomberg NEW YORK: QXO Inc is seeking to raise US$2bil in a share sale, as the building products distributor, led by billionaire Brad Jacobs, pursues a takeover. The Greenwich, Connecticut-based firm is marketing the shares for US$22.25 to US$23.25 each in an overnight share sale, according to people familiar with the matter, who asked not to be identified as the information isn't public. QXO intends to use proceeds from the offering for purposes which may include funding future acquisitions, according to a statement. The price range represents a discount of as much as 5.4% to the stock's last traded price of US$23.51 each. Its shares have climbed nearly 48% in the year-to-date period, giving the company a market value of US$13.4bil. QXO made an unsolicited US$5bil offer for GMS Inc, and said it wouldn't raise the offer after The Wall Street Journal reported Home Depot Inc had made a rival bid. QXO is the largest publicly traded distributor of roofing and building products in the United States. — Bloomberg
Yahoo
3 days ago
- Business
- Yahoo
Metals Company upgraded, CoreWeave initiated: Wall Street's top analyst calls
The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The 5 Upgrades: JPMorgan upgraded Yum! Brands (YUM) to Overweight from Neutral with a price target of $162, down from $170. The firm cites the company's "sustained" 4% unit growth, "strong" free cash flow generation, and pulled back valuation for the upgrade. Jefferies upgraded Stellantis (STLA) to Buy from Hold with a price target of $13.20, up from $10.25. Data suggests the company's "earnings slide is about to turn," the analyst tells investors in a research note. Goldman Sachs upgraded Kraft Heinz (KHC) to Neutral from Sell with a price target of $27, up from $25. The firm now sees a more balanced risk/reward, saying the company's previously announced review of strategic alternatives could result in upside risk. Wedbush upgraded Metals Company (TMC) to Outperform from Neutral with a price target of $11, up from $6, citing "significantly increased confidence" in the long-term growth story following the executive order signed by President Trump at the end of April. Goldman Sachs upgraded Duke Energy (DUK) to Buy from Neutral with a price target of $132, up from $125. The firm has become more constructive on the company's outlook from a load growth, generation capex, regulatory and balance sheet 5 Downgrades: BNP Paribas Exane downgraded Graphic Packaging (GPK) to Neutral from Outperform. BTIG downgraded NuScale Power (SMR) to Neutral from Buy without a price target. The firm continues to like the stock longer term, but says some catalysts have already played out, including the Nuclear Regulatory Commission awarding standard design approval at the end of May, Congress continuing to support U.S. nuclear power development tied to the Inflation Reduction Act, and positive election results in Romania. Raymond James downgraded GMS Inc. (GMS) to Market Perform from Outperform without a price target. With the shares trading well above the only publicly quantified offer price from QXO (QXO), limited incentive for another buyer to put forth a bid well above where shares currently trade, and the unlikelihood of QXO to raise its offer even in the event of an over-the-top bid, GMS's risk/reward is more balanced, the analyst tells investors in a research note. Goldman Sachs downgraded WEC Energy (WEC) to Sell from Neutral with a price target of $100, down from $106. The firm cites the stock's outperformance over the past 12 months and on a year to date basis for the downgrade. Barclays downgraded Omnicom (OMC) to Equal Weight from Overweight with a price target of $80, down from $105. The firm came away from the Cannes ad festival last week more bearish than before on the advertising agencies. Top 5 Initiations: Argus initiated coverage of Duolingo (DUOL) with a Buy rating and $575 price target. The firm is positive on the company's "impressive" record of growth and profitability while noting that its recent results are "trending positively." B. Riley last night initiated coverage of Nextdoor (KIND) with a Neutral rating and $2 price target. With 100M signed-up neighbors globally and coverage of approximately one-third of U.S. households, Nextdoor's platform connects people to their local neighborhoods and offers a unique play on the advertising opportunity associated with its hyper-local social platform, the analyst tells investors in a research note. Canaccord initiated coverage of Flutter Entertainment (FLUT) with a Buy rating and $330 price target. The company has developed a portfolio of brands that maintain a leading or "podium position" in many of the largest and fastest growing betting markets around the world through a series of acquisitions, the analyst says. H.C. Wainwright initiated coverage of CoreWeave (CRWV) with a Neutral rating and no price target. The firm believes the stock "may need a minute to breathe after a five-fold breakout versus a period-comp 25% Nasdaq rise." DA Davidson initiated coverage of ServiceNow (NOW) with a Buy rating and $1,150 price target. ServiceNow has been a market leading business automation provider for "over two decades" and is now in the early stages of disrupting the CRM market, which is undergoing "a once in a generation shift due to AI," the analyst tells investors.
Yahoo
3 days ago
- Business
- Yahoo
QXO Announces Pricing of Common Stock Offering
GREENWICH, Conn., June 25, 2025--(BUSINESS WIRE)--QXO, Inc. (NYSE: QXO) (the "Company" or "QXO") today announced the pricing of its previously announced public offering of 89,887,640 shares of its common stock (the "Offering") at a price to public of $22.25 per share. The Offering is expected to close on June 26, 2025, subject to customary closing conditions. QXO has granted the underwriters of the Offering an option to purchase up to an additional 13,483,146 shares of common stock at the public offering price less underwriting discounts and commissions. QXO intends to use the net proceeds from the Offering for general corporate purposes, which may include, among other things, funding future acquisitions of businesses. Goldman Sachs & Co. LLC, Morgan Stanley and Wells Fargo Securities are acting as underwriters for the Offering. The Offering is being made by means of a prospectus supplement under QXO's effective registration statement on Form S-3ASR, as filed with the Securities and Exchange Commission (the "SEC"). This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor does it constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale is unlawful. The Offering may be made only by means of a prospectus supplement relating to such Offering and the accompanying prospectus. Copies of the final prospectus supplement for the Offering and the accompanying prospectus can be obtained from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at 1-866-471-2526, or by e-mail at prospectus-ny@ Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; and Wells Fargo Securities, LLC, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, by telephone at 800-645-3751 (option #5), or by e-mail at WFScustomerservice@ About QXO QXO is the largest publicly traded distributor of roofing, waterproofing and complementary building products in the United States. The company plans to become the tech-enabled leader in the $800 billion building products distribution industry and generate outsized value for shareholders. QXO is targeting $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs, expectations, targets or goals, the use of proceeds of the Offering and the expected closing date of the Offering, are forward-looking statements. These statements are based on plans, estimates, expectations and/or goals at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as "may," "will," "should," "expect," "opportunity," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "target," "goal," or "continue," or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described herein include, among others: an inability to obtain the products we distribute resulting in lost revenues and reduced margins and damaging relationships with customers; a change in supplier pricing and demand adversely affecting our income and gross margins; a change in vendor rebates adversely affecting our income and gross margins; our inability to identify potential acquisition targets or successfully complete acquisitions on acceptable terms; risks related to maintaining our safety record; the possibility that building products distribution industry demand may soften or shift substantially due to cyclicality or dependence on general economic and political conditions, including inflation or deflation, interest rates, governmental subsidies or incentives, consumer confidence, labor and supply shortages, weather and commodity prices; the possibility that regional or global barriers to trade or a global trade war could increase the cost of products in the building products distribution industry, which could adversely impact the competitiveness of such products and the financial results of businesses in the industry; seasonality, weather-related conditions and natural disasters; risks related to the proper functioning of our information technology systems, including from cybersecurity threats; loss of key talent or our inability to attract and retain new qualified talent; risks related to work stoppages, union negotiations, labor disputes and other matters associated with our labor force or the labor force of our suppliers or customers; the risk that the anticipated benefits of our acquisition of Beacon Roofing Supply, Inc. (the "Beacon Acquisition") or any future acquisition may not be fully realized or may take longer to realize than expected; the effect of the Beacon Acquisition or any future acquisition on our business relationships with employees, customers or suppliers, operating results and business generally; the possibility that we may not engage in discussions with respect to, proceed with or consummate the proposed acquisition of GMS, Inc. ("GMS") or, if we do consummate a transaction with GMS, such transaction may not be on the terms proposed or within the anticipated time frame; unexpected costs, charges or expenses resulting from the Beacon Acquisition or any future acquisition or difficulties in integrating and operating acquired companies; the risk that the Company is or becomes highly dependent on the continued leadership of Brad Jacobs as chairman and chief executive officer and the possibility that the loss of Mr. Jacobs in these roles could have a material adverse effect on the Company's business, financial condition and results of operations; the possibility that the Company's outstanding warrants and preferred stock may or may not be converted or exercised, and the economic impact on the Company and the holders of common stock of the Company that may result from either such exercise or conversion, including dilution, or the continuance of the preferred stock remaining outstanding, and the impact its terms, including its dividend, may have on the Company and the common stock of the Company; challenges raising additional equity or debt capital from public or private markets to pursue the Company's business plan and the effects that raising such capital may have on the Company and its business; the possibility that new investors in any future financing transactions could gain rights, preferences and privileges senior to those of the Company's existing stockholders; risks associated with periodic litigation, regulatory proceedings and enforcement actions, which may adversely affect the Company's business and financial performance; the impact of legislative, regulatory, economic, competitive and technological changes; unknown liabilities and uncertainties regarding general economic, business, competitive, legal, regulatory, tax and geopolitical conditions; and other factors, including those set forth in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements should not be relied on as predictions of future events, and these statements are not guarantees of performance or results. Forward-looking statements herein speak only as of the date each statement is made. QXO does not undertake any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law. View source version on Contacts Media Joe 203-609-9650Investor Mark 203-321-3889 Sign in to access your portfolio
