Trex (NYSE:TREX) Hits New 1-Year Low After Earnings Miss

Trex Company, Inc. (NYSE:TREX) reached a new 52-week low on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $47.01 and last traded at $47.88, with a volume of 2208509 shares traded. The stock had previously closed at $48.32.

The construction company reported $0.51 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.06). The company had revenue of $285.35 million during the quarter, compared to analysts’ expectations of $301.74 million. Trex had a net margin of 16.53% and a return on equity of 21.27%. The company’s revenue for the quarter was up 22.1% on a year-over-year basis. During the same quarter last year, the business posted $0.37 earnings per share. Trex has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Truist Financial decreased their price target on Trex from $75.00 to $50.00 and set a “buy” rating for the company in a report on Wednesday. JPMorgan Chase & Co. cut their target price on Trex from $73.00 to $71.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 6th. Stifel Nicolaus set a $61.00 target price on Trex and gave the stock a “buy” rating in a research report on Wednesday, October 8th. Vertical Research cut Trex from a “buy” rating to a “hold” rating and set a $32.00 target price on the stock. in a research report on Wednesday. Finally, DA Davidson set a $45.00 target price on Trex and gave the stock a “neutral” rating in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $56.53.

Institutional Investors Weigh In On Trex

Several institutional investors have recently modified their holdings of the company. CWM LLC boosted its stake in shares of Trex by 16.8% during the 2nd quarter. CWM LLC now owns 1,141 shares of the construction company’s stock worth $62,000 after acquiring an additional 164 shares in the last quarter. AQR Capital Management LLC lifted its stake in Trex by 3.2% in the 1st quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company’s stock valued at $320,000 after buying an additional 177 shares in the last quarter. ProShare Advisors LLC lifted its stake in Trex by 4.1% in the 2nd quarter. ProShare Advisors LLC now owns 4,754 shares of the construction company’s stock valued at $259,000 after buying an additional 189 shares in the last quarter. State of Michigan Retirement System lifted its stake in Trex by 0.8% in the 1st quarter. State of Michigan Retirement System now owns 25,622 shares of the construction company’s stock valued at $1,489,000 after buying an additional 200 shares in the last quarter. Finally, Louisiana State Employees Retirement System lifted its stake in Trex by 0.7% in the 2nd quarter. Louisiana State Employees Retirement System now owns 30,200 shares of the construction company’s stock valued at $1,642,000 after buying an additional 200 shares in the last quarter. Hedge funds and other institutional investors own 95.96% of the company’s stock.

Trex Trading Down 31.2%

The business has a 50 day moving average of $53.54 and a 200-day moving average of $57.51. The stock has a market cap of $3.47 billion, a PE ratio of 18.72, a price-to-earnings-growth ratio of 2.02 and a beta of 1.49.

Trex Company Profile

Trex Company, Inc manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps.