GMS Inc.(GMS) Flies 23.77% Higher After Home Depot Acquisition Bid

GMS Inc. (NYSE:GMS) is one of the 10 Stocks End Trading Week Soaring, Outshining Wall Street.

GMS Inc. jumped by 23.77 percent on Friday to end at $100.27 apiece as investor sentiment was buoyed by news that it was being targeted for acquisition by Home Depot.

Citing sources privy to the matter, The Wall Street Journal reported that Home Depot has made an offer to acquire GMS Inc. (NYSE:GMS), making it the second company to place bets on GMS Inc. (NYSE:GMS), after QXO Inc.’s (NYSE:QXO) earlier intention to acquire all outstanding shares of GMS for $95.20.

QXO’s proposal implies a total transaction value of approximately $5 billion and reflects a 27 percent premium over GMS’s 60-day volume-weighted average price of $74.82.

“We believe this is a compelling opportunity for GMS investors to realize the full value of their shares in a single, decisive transaction,” said QXO, Inc. (NYSE:QXO).

Meanwhile, Home Depot declined to comment on requests for comment.

Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC will act as financial advisors to QXO, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel.

While we acknowledge the potential of GMS 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.