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

Trex Company, Inc. (NYSE:TREX) has earned a consensus recommendation of “Hold” from the twenty-two analysts that are presently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation and ten have assigned a buy recommendation to the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $49.30.

TREX has been the subject of a number of analyst reports. Citigroup restated a “neutral” rating and set a $52.00 target price (up from $43.00) on shares of Trex in a report on Wednesday, July 15th. Zacks Research downgraded Trex from a “strong-buy” rating to a “hold” rating in a report on Monday, September 14th. Stephens upped their price objective on Trex from $45.00 to $50.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 28th. Barclays reaffirmed an “underweight” rating and set a $42.00 price objective (up from $36.00) on shares of Trex in a research report on Tuesday, July 14th. Finally, Stifel Nicolaus set a $49.00 target price on Trex and gave the company a “hold” rating in a research note on Tuesday, August 11th.

Trex Price Performance

TREX stock opened at $44.86 on Tuesday. Trex has a 1-year low of $29.77 and a 1-year high of $54.30. The business has a 50-day moving average price of $45.47 and a 200 day moving average price of $42.84. The company has a market capitalization of $4.66 billion, a P/E ratio of 26.70, a PEG ratio of 3.09 and a beta of 1.47.

Trex (NYSE:TREX) last issued 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 the consensus estimate of $415.71 million. During the same quarter in the previous year, the company earned $0.71 earnings per share. The firm’s revenue was up 7.8% on a year-over-year basis. On average, analysts anticipate that Trex will post 1.76 earnings per share for the current fiscal year.

Insider Activity at Trex

In other news, SVP Amy M. Fernandez sold 1,050 shares of the firm’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 completion of the sale, 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 document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.93% of the company’s stock.

Hedge Funds Weigh In On Trex

Hedge funds and other institutional investors have recently modified their holdings of the stock. Junto Capital Management LP acquired a new position in shares of Trex in the 2nd quarter valued at $20,074,000. Sequoia Financial Advisors LLC lifted 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 acquiring an additional 1,567 shares during the period. Tidal Investments LLC lifted its position in Trex by 129.8% during the 2nd quarter. Tidal Investments LLC now owns 20,629 shares of the construction company’s stock worth $1,032,000 after acquiring an additional 11,651 shares during the period. WINTON GROUP Ltd grew its stake in Trex by 449.0% during 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 during the last quarter. Finally, NewEdge Advisors LLC grew its stake in Trex by 858.1% during the 2nd quarter. NewEdge Advisors LLC now owns 5,988 shares of the construction company’s stock valued at $300,000 after purchasing an additional 5,363 shares during the last quarter. 95.96% of the stock is owned by hedge funds and other institutional investors.

About Trex

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.