The Market Myopia Regarding GMS Inc. (GMS)

The stock of GMS Inc. (NYSE:GMS) has been Downgraded to Neutral from Buy by Nomura in its latest research note that was published on May 16. GMS was given a price target of $20 by Nomura, with other Wall Street analysts also giving their reports regarding the stock. Robert W. Baird analysts have downgraded their rating of GMS stock from Outperform to Neutral in a separate flash note to investors on July 03. Analysts at Raymond James issued an upgrade fromOutperform to Strong Buy for the stock, in a research note that dated back to June 29.

GMS Inc., which has current market capitalization of above $1 Billion, published its last quarter earnings on July 31, 2019.

GMS surged by $0.49 during the normal trading session on Thursday and reaching a high of $27.90 during the day while it closed the day at $27.78. The GMS stock had a low trading volume of 1.07 million shares on that day, which is low compared to the average daily volume of 637.75M shares. GMS has also gained 3.00% of its value over the past 7 days. However, the stock has surged by 48.24% in the 3 months of the year. Over the past six months meanwhile, it has gained 68.16% while it has added 86.94% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -9.04% from its 3 months high price. However, taking another look at GMS will indicate that it is trading +65.95% away from its 90-day low. Looking at the bigger picture, the GMS Inc. stock has dropped by -9.04% from its 52-week high while it has surged by +104.11% from its 52-week low price.

On September 09, 2019 AEA INVESTORS LP, 10% Owner sold 6825058 shares of the company. The average price for that transaction was $26.93 per share, which meant that AEA INVESTORS LP earned $184000000 selling the stocks. The sale was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with 10% Owner, AEA INVESTORS FUND V-A LP selling 6825058 shares of this stock on September 09, 2019. The average selling price for the stock was $26.93 per share, with the sold stock accruing $184000000. Following this transaction, the 10% Owner AEA INVESTORS FUND V-A LP now holds 100000 shares of the company, which is worth around $2741000.

GMS has around 24 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $354 Billion. The GMS stock is bringing in revenue of over 12 months, which is roughly 574 Billion. Despite all that, GMS Inc. is seeing things progressing very much as their y-o-y quarterly revenue surged by 7.54%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 72.4%. This figure is better than the company’s 20-day Raw Stochastic average which currently stands at 70.27%. Over the past 20 days, GMS’s Stochastic %K stood at 68.25% while its Stochastic %D was revealed to be 65.83%.