Today’s Change
Current Price
QXO (QXO 3.03%), a roofing and building products distributor, closed at $17.28, down 3.03%. Merger-election results for TopBuild showed most shareholders choosing cash, and investors are watching the expected July 1 close.
Trading volume reached 87.3 million shares, more than five times the three-month average of 16.3 million shares. QXO IPO’d in 2012 and has fallen 28% since going public.
How the markets moved today
The S&P 500 (^GSPC +0.79%) rose 0.79% to 7,499, while the Nasdaq Composite (^IXIC +1.52%) gained 1.52% to 26,214. Among building-products distribution and roofing, waterproofing and complementary construction materials peers, Builders FirstSource (BLDR 1.14%) fell 1.16% to $89.46.
What this means for investors
Entrepreneur Brad Jacobs founded QXO to unify the $800 billion building products distribution sector while utilizing technology to boost efficiency. Jacobs also established other successful ventures, such as XPO Logistics (XPO 0.47%) , a transportation and logistics firm, and United Rentals (URI +0.91%), an equipment rental company.
Merger-election results were just announced for QXO’s latest acquisition, TopBuild (BLD 1.45%), with shareholders of both companies overwhelmingly approving all proposals required for QXO to complete its acquisition of TopBuild. That is now expected to occur on July 1.
Yet 91% of TopBuild stockholders elected to receive the cash consideration, with just 9% either opting for QXO stock or not delivering a valid election, which will result in the stock consideration.
That led to a decline in QXO shares today, though long-term shareholders should focus on how the company integrates the business and whether its expansion in scale will boost QXO’s reach in the sector.
Howard Smith has positions in QXO. The Motley Fool has positions in and recommends QXO and TopBuild. The Motley Fool recommends XPO. The Motley Fool has a disclosure policy.
