Beacon Roofing Stock Rises After Company Starts Looking For Buyers: Retail Neutral

Shares of Beacon Roofing Supply ($BECN) rose about 1.62% on Friday as the company reportedly began looking for potential buyers, with retail sentiment staying neutral.

Earlier this month, Beacon had rejected an $11 billion takeover bid from QXO Inc. ($QXO), which is now considering to reportedly taking the bid directly to its shareholders, WSJ reported.

WSJ reported technology solutions company QXO plans to launch a bid as soon as Monday at the same price it offered earlier. QXO had offered to buy all outstanding shares of Beacon for $124.25 per share in cash.

In an earlier statement, Beacon had said the proposal from AXO had “significantly undervalued the company” and wasn’t in the best interest of its shareholders and the company.

Sentiment on Stocktwits was ‘neutral’ while message volumes were in the ‘low’ zone.

BECN sentiment meter and message volumes on Jan 26 as of 8:57 pm ET

Virginia-based Beacon had been in talks with QXO since November when it first received the offer.

QXO has secured the committed financing for the deal and has also nominated directors to Beacon’s board. QXO is owned by billionaire Brad Jacobs who has invested previously in logistics companies.

Stifel analyst W. Andrew Carter raised the firm's price target to $131 from $115 with a ‘Buy’ rating, Fly.com reported. The firm sees Beacon buyout as "highly likely" following QXO's formal $124.25 per share offer, which was rejected.

Beacon distributes specialty building products, including roofing materials and complementary products, such as siding and waterproofing. It operates over 580 branches throughout all 50 states in the U.S. and seven provinces in Canada.

For updates and corrections, email newsroom[at]stocktwits[dot]com.