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

Trex Company, Inc. (NYSE:TREX) has been assigned an average recommendation of “Hold” from the twenty-two research firms that are covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $49.30.

TREX has been the topic of a number of analyst reports. Stifel Nicolaus set a $49.00 price objective on Trex and gave the stock a “hold” rating in a research report on Tuesday, August 11th. Citigroup restated a “neutral” rating and issued a $52.00 target price (up from $43.00) on shares of Trex in a report on Wednesday, July 15th. Zelman & Associates raised Trex from a “neutral” rating to an “outperform” rating and set a $50.00 target price for the company in a research note on Monday, May 18th. BMO Capital Markets set a $57.00 price target on Trex in a report on Wednesday, August 5th. Finally, DA Davidson reissued a “buy” rating and set a $55.00 price target on shares of Trex in a research report on Tuesday, July 14th.

Trex Stock Down 0.1%

TREX opened at $43.67 on Friday. The company has a market cap of $4.54 billion, a PE ratio of 25.99, a price-to-earnings-growth ratio of 3.02 and a beta of 1.47. Trex has a twelve month low of $29.77 and a twelve month high of $66.06. The company has a 50-day moving average price of $46.44 and a 200 day moving average price of $42.49.

Trex (NYSE:TREX) last announced its 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). Trex had a return on equity of 18.03% and a net margin of 14.68%.The business had revenue of $418.02 million for the quarter, compared to analyst estimates of $415.71 million. During the same period last year, the firm earned $0.71 EPS. The company’s revenue for the quarter was up 7.8% compared to the same quarter last year. As a group, sell-side analysts expect that Trex will post 1.76 earnings per share for the current year.

Insider Activity

In other Trex news, SVP Amy M. Fernandez sold 1,050 shares of Trex stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $50.07, for a total transaction of $52,573.50. Following the transaction, the senior vice president directly owned 67,794 shares of the company’s stock, valued at $3,394,445.58. The trade was a 1.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Jacob Rudolph sold 1,400 shares of the business’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $50.00, for a total transaction of $70,000.00. Following the completion of the transaction, the senior vice president 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.93% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

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

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.