Trex Company, Inc. (NYSE:TREX) Receives Average Recommendation of “Hold” from Brokerages

Trex Company, Inc. (NYSE:TREX) has earned an average recommendation of “Hold” from the twenty-two research firms that are currently covering the firm, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $49.30.

A number of brokerages recently issued reports on TREX. Zelman & Associates raised shares of Trex from a “neutral” rating to an “outperform” rating and set a $50.00 price target on the stock in a report on Monday, May 18th. Citigroup restated a “neutral” rating and issued a $52.00 price target (up from $43.00) on shares of Trex in a research note on Wednesday, July 15th. Bank of America upped their price target on Trex from $42.00 to $44.00 and gave the stock an “underperform” rating in a report on Tuesday, July 14th. Weiss Ratings lowered Trex from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, August 18th. Finally, The Goldman Sachs Group reissued a “buy” rating and issued a $56.00 price target (up from $49.00) on shares of Trex in a research note on Friday, July 10th.

Insiders Place Their Bets

In related news, SVP Amy M. Fernandez sold 1,050 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $50.07, for a total transaction of $52,573.50. Following the completion of the transaction, the senior vice president owned 67,794 shares of the company’s stock, valued at approximately $3,394,445.58. This represents a 1.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, 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 transaction, the senior vice president directly owned 36,631 shares in the company, valued at approximately $1,831,550. This represents a 3.68% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.93% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in TREX. Clearstead Trust LLC purchased a new stake in Trex during the fourth quarter valued at about $33,000. Ascentis Independent Advisors purchased a new position in shares of Trex in the 1st quarter worth about $44,000. Eurizon Capital SGR S.p.A. acquired a new position in shares of Trex in the 4th quarter valued at about $47,000. Empowered Funds LLC acquired a new position in shares of Trex in the 4th quarter valued at about $50,000. Finally, Versant Capital Management Inc purchased a new stake in shares of Trex during the 2nd quarter worth about $58,000. 95.96% of the stock is owned by hedge funds and other institutional investors.

Trex Trading Down 4.8%

TREX opened at $43.38 on Friday. The firm’s 50 day simple moving average is $46.66 and its two-hundred day simple moving average is $42.48. The company has a market capitalization of $4.51 billion, a PE ratio of 25.82, a PEG ratio of 3.15 and a beta of 1.47. Trex has a 1-year low of $29.77 and a 1-year high of $66.06.

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

About Trex

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.