Trex (NYSE:TREX) Stock Rated Buy in New Coverage at Melius Research

Melius Research began coverage on shares of Trex (NYSE:TREX) in a research report report published on Tuesday morning, MarketBeat Ratings reports. The brokerage issued a buy rating and a $62.00 price target on the construction company’s stock.

TREX has been the topic of a number of other research reports. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $51.00 price objective (up from $41.00) on shares of Trex in a report on Tuesday, July 14th. Zacks Research cut Trex from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 14th. Citigroup reissued a “neutral” rating and issued a $52.00 price target (up from $43.00) on shares of Trex in a report on Wednesday, July 15th. Weiss Ratings upgraded Trex from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, September 1st. Finally, UBS Group reiterated a “buy” rating and set a $61.00 target price (up from $59.00) on shares of Trex in a research note on Tuesday, July 14th. Twelve research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Trex presently has a consensus rating of “Hold” and a consensus target price of $50.19.

Trex Stock Performance

Trex stock opened at $44.44 on Tuesday. The firm has a market capitalization of $4.62 billion, a PE ratio of 26.45, a price-to-earnings-growth ratio of 3.02 and a beta of 1.48. Trex has a one year low of $29.77 and a one year high of $54.30. The stock’s 50 day moving average price is $45.62 and its 200 day moving average price is $43.30.

Trex (NYSE:TREX) last issued its quarterly earnings data 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). Trex had a net margin of 14.68% and a return on equity of 18.03%. The firm had revenue of $418.02 million during the quarter, compared to analyst estimates of $415.71 million. During the same period last year, the business earned $0.71 EPS. The firm’s revenue was up 7.8% compared to the same quarter last year. On average, analysts forecast that Trex will post 1.76 earnings per share for the current fiscal year.

Insider Transactions at Trex

In other Trex news, SVP Amy M. Fernandez sold 1,050 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $50.07, for a total transaction of $52,573.50. Following the transaction, the senior vice president owned 67,794 shares of the company’s stock, valued at $3,394,445.58. This trade represents a 1.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.93% of the stock is owned by insiders.

Institutional Investors Weigh In On Trex

Institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new position in Trex during the second quarter worth $525,081,000. Wellington Management Group LLP lifted its position in shares of Trex by 18.2% in the 2nd quarter. Wellington Management Group LLP now owns 9,877,116 shares of the construction company’s stock worth $494,251,000 after buying an additional 1,518,338 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Trex by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 1,913,263 shares of the construction company’s stock worth $67,132,000 after buying an additional 24,892 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of Trex in the 2nd quarter valued at about $94,851,000. Finally, Freestone Grove Partners LP bought a new stake in shares of Trex during the 2nd quarter valued at about $36,197,000. 95.96% of the stock is currently owned by institutional investors.

About Trex

Trex Company, Inc designs, manufactures and distributes composite decking, railing and related outdoor-living products. Its portfolio includes residential and commercial decking systems, railing, outdoor lighting, furniture, and other accessories sold under the Trex brand. The company’s products are positioned as alternatives to traditional wood and are designed to provide durability and lower maintenance.

Trex composite products are made primarily from reclaimed wood fibers and recycled polyethylene film, including materials such as used plastic bags and packaging.