Trex (NYSE:TREX) Stock Price Passes Above 200-Day Moving Average – Time to Sell?

Trex Company, Inc. (NYSE:TREX)’s share price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $42.24 and traded as high as $49.00. Trex shares last traded at $47.6920, with a volume of 1,274,890 shares traded.

Analyst Ratings Changes

TREX has been the topic of a number of research analyst reports. Zelman & Associates raised Trex from a “neutral” rating to an “outperform” rating and set a $50.00 price target on the stock in a research note on Monday, May 18th. Barclays reaffirmed an “underweight” rating and set a $42.00 price target (up from $36.00) on shares of Trex in a research report on Tuesday, July 14th. Stephens upped their target price on shares of Trex from $45.00 to $50.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 28th. Zacks Research upgraded Trex from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 15th. Finally, Citigroup restated a “neutral” rating and issued a $52.00 price objective (up from $43.00) on shares of Trex in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Trex has an average rating of “Hold” and a consensus price target of $49.30.

Trex Trading Down 2.2%

The business’s fifty day moving average price is $46.68 and its 200 day moving average price is $42.29. The firm has a market capitalization of $4.91 billion, a price-to-earnings ratio of 28.10, a PEG ratio of 3.29 and a beta of 1.48.

Trex (NYSE:TREX) last issued its quarterly earnings results on Tuesday, August 4th. The construction company reported $0.62 earnings per share for the quarter, missing analysts’ consensus estimates of $0.63 by ($0.01). The business had revenue of $418.02 million for the quarter, compared to analyst estimates of $415.71 million. Trex had a return on equity of 18.03% and a net margin of 14.68%.The firm’s revenue for the quarter was up 7.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.71 EPS. As a group, sell-side analysts forecast that Trex Company, Inc. will post 1.76 earnings per share for the current fiscal year.

Insider Activity at Trex

In other Trex news, SVP Jacob T. Rudolph sold 1,400 shares of the stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $50.00, for a total transaction of $70,000.00. Following the completion of the sale, the senior vice president directly owned 36,631 shares of the company’s stock, valued at approximately $1,831,550. This trade represents a 3.68% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Amy M. Fernandez sold 1,050 shares of Trex stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $50.07, for a total value of $52,573.50. Following the completion of the transaction, the senior vice president owned 67,794 shares in the company, valued at $3,394,445.58. This trade represents a 1.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.93% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Trex

A number of large investors have recently made changes to their positions in TREX. QV Investors Inc. acquired a new position in Trex during the second quarter worth $1,615,000. Two Sigma Securities LLC purchased a new stake in Trex in the 2nd quarter valued at approximately $242,000. Alyeska Investment Group L.P. purchased a new stake in Trex in the 2nd quarter valued at approximately $30,008,000. Van Den Berg Management I Inc. grew its holdings in Trex by 1.5% during the 2nd quarter. Van Den Berg Management I Inc. now owns 86,107 shares of the construction company’s stock valued at $4,309,000 after buying an additional 1,236 shares during the last quarter. Finally, Wellington Management Group LLP grew its holdings in Trex by 18.2% during the 2nd quarter. Wellington Management Group LLP now owns 9,877,116 shares of the construction company’s stock valued at $494,251,000 after buying an additional 1,518,338 shares during the last quarter. Hedge funds and other institutional investors own 95.96% of the company’s stock.

Trex Company Profile

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company’s core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex’s product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.