Trex (NYSE:TREX) Sets New 52-Week High – What’s Next?

Trex Company, Inc. (NYSE:TREX)’s share price reached a new 52-week high during mid-day trading on Thursday. The stock traded as high as $51.12 and last traded at $50.80, with a volume of 167,892 shares. The stock had previously closed at $49.54.

Analyst Ratings Changes

TREX has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft raised shares of Trex from a “hold” rating to a “buy” rating and increased their price objective for the company from $53.00 to $57.00 in a research report on Thursday, October 8th. Citigroup reiterated a “neutral” rating and set a $52.00 price target (up from $43.00) on shares of Trex in a research note on Wednesday, July 15th. The Goldman Sachs Group reissued a “buy” rating and issued a $56.00 target price (up from $49.00) on shares of Trex in a research report on Friday, July 10th. Wall Street Zen upgraded shares of Trex from a “sell” rating to a “hold” rating in a research note on Sunday, July 12th. Finally, Barclays reiterated an “underweight” rating and set a $42.00 target price (up from $36.00) on shares of Trex in a research report on Tuesday, July 14th. Thirteen research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $50.48.

Trex Stock Up 2.6%

The firm has a market capitalization of $5.28 billion, a price-to-earnings ratio of 30.23, a P/E/G ratio of 2.92 and a beta of 1.48. The stock’s 50 day moving average price is $45.48 and its two-hundred day moving average price is $43.07.

Trex (NYSE:TREX) last posted 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 return on equity of 18.03% and a net margin of 14.68%. The business’s revenue for the quarter was up 7.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.71 earnings per share. On average, equities analysts expect that Trex Company, Inc. will post 1.77 EPS for the current fiscal year.

Insider Activity at Trex

In other 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 value 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 $3,394,445.58. This trade represents a 1.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.93% of the stock is currently owned by corporate insiders.

Institutional Trading of Trex

Several institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in shares of Trex during the 2nd quarter worth approximately $525,081,000. Wellington Management Group LLP increased its stake in shares of Trex by 18.2% in the second quarter. Wellington Management Group LLP now owns 9,877,116 shares of the construction company’s stock worth $494,251,000 after purchasing an additional 1,518,338 shares in the last quarter. Bank of America Corp DE bought a new stake in shares of Trex during the 2nd quarter valued at $94,851,000. Freestone Grove Partners LP purchased a new stake in shares of Trex in the 2nd quarter valued at about $36,197,000. Finally, Fort Washington Investment Advisors Inc. OH purchased a new position in shares of Trex during the 3rd quarter valued at about $32,858,000. Institutional investors own 95.96% of the company’s stock.

Trex Company Profile

Trex Company, Inc is a manufacturer of composite decking and outdoor living products. Its offerings are designed as alternatives to traditional wood and include residential and commercial decking, railing systems, outdoor lighting, and related accessories.

The company’s products are marketed under the Trex brand and include decking lines such as Trex Transcend, Trex Select, and Trex Enhance. Trex composite products are made primarily from recycled wood fibers and recycled polyethylene plastics, supporting the company’s focus on low-maintenance and environmentally oriented outdoor building materials.

Founded in 1996 and headquartered in Winchester, Virginia, Trex serves customers through a network of distributors, dealers, retailers, contractors, and building professionals.