Trex (NYSE:TREX) Cut to “Hold” at Zacks Research

Trex (NYSE:TREX) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Monday, Zacks reports.

Several other research analysts also recently weighed in on TREX. Weiss Ratings upgraded Trex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, September 1st. DA Davidson reaffirmed a “buy” rating and set a $55.00 price target on shares of Trex in a report on Tuesday, July 14th. Barclays reiterated an “underweight” rating and issued a $42.00 price objective (up from $36.00) on shares of Trex in a research report on Tuesday, July 14th. Truist Financial boosted their price objective on shares of Trex from $55.00 to $60.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Finally, BMO Capital Markets set a $57.00 price objective on shares of Trex in a research report on Wednesday, August 5th. Ten analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Trex currently has an average rating of “Hold” and a consensus price target of $49.30.

Trex Stock Performance

NYSE TREX opened at $43.61 on Monday. Trex has a one year low of $29.77 and a one year high of $60.28. The firm has a market cap of $4.53 billion, a PE ratio of 25.96, a P/E/G ratio of 3.01 and a beta of 1.47. The firm’s fifty day moving average is $45.79 and its two-hundred day moving average is $42.67.

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

Insider Buying and Selling

In related news, SVP Jacob Rudolph sold 1,400 shares of Trex stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $50.00, for a total value of $70,000.00. Following the sale, the senior vice president directly owned 36,631 shares in the company, valued at $1,831,550. The trade was a 3.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Amy M. Fernandez sold 1,050 shares of the company’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $50.07, for a total value of $52,573.50. Following the transaction, the senior vice president directly owned 67,794 shares in the company, valued at $3,394,445.58. This represents a 1.53% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.93% of the stock is owned by insiders.

Hedge Funds Weigh In On Trex

A number of large investors have recently made changes to their positions in TREX. Junto Capital Management LP acquired a new position in shares of Trex in the second quarter worth $20,074,000. Sequoia Financial Advisors LLC increased its position in Trex by 18.3% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 10,131 shares of the construction company’s stock worth $507,000 after purchasing an additional 1,567 shares in the last quarter. Tidal Investments LLC raised its stake in Trex by 129.8% in the 2nd quarter. Tidal Investments LLC now owns 20,629 shares of the construction company’s stock valued at $1,032,000 after purchasing an additional 11,651 shares during the last quarter. WINTON GROUP Ltd lifted its holdings in Trex by 449.0% in the 2nd quarter. WINTON GROUP Ltd now owns 194,459 shares of the construction company’s stock valued at $9,731,000 after purchasing an additional 159,039 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its stake in shares of Trex by 858.1% during the 2nd quarter. NewEdge Advisors LLC now owns 5,988 shares of the construction company’s stock worth $300,000 after purchasing an additional 5,363 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 designs, manufactures and markets wood-alternative composite decking and outdoor living products. Its product portfolio includes decking boards, railing systems, outdoor lighting, deck drainage and related accessories sold under the Trex brand. The company’s composite products are made primarily from recycled materials and are positioned as lower-maintenance alternatives to traditional wood decking.

Trex serves residential and commercial customers through a network of dealers, distributors, retailers, contractors and building professionals.