Zacks Investment Research Lowers Trex (NYSE:TREX) to Hold

Trex (NYSE:TREX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Saturday, Zacks.com reports.

According to Zacks, “Trex Company, Inc. is a manufacturer of wood-alternative decking and railing. Trex Company, Inc. is based in Winchester, United States. “

A number of other analysts also recently commented on TREX. Robert W. Baird upped their price objective on Trex from $108.00 to $120.00 and gave the stock a “neutral” rating in a report on Tuesday, November 9th. B. Riley increased their price target on Trex from $108.00 to $121.00 and gave the company a “neutral” rating in a report on Tuesday, November 9th. They noted that the move was a valuation call. Barclays increased their price target on Trex from $116.00 to $140.00 and gave the company an “equal weight” rating in a report on Wednesday, December 15th. JPMorgan Chase & Co. downgraded Trex from a “neutral” rating to an “underweight” rating and set a $135.00 price target for the company. in a report on Wednesday, December 15th. They noted that the move was a valuation call. Finally, BMO Capital Markets increased their price target on Trex from $98.00 to $105.00 and gave the company a “market perform” rating in a report on Tuesday, November 9th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $123.75.

TREX stock opened at $106.95 on Friday. Trex has a 1 year low of $81.76 and a 1 year high of $140.98. The stock’s 50 day moving average price is $130.07 and its 200 day moving average price is $112.90. The firm has a market cap of $12.31 billion, a P/E ratio of 54.57 and a beta of 1.37.

Trex (NYSE:TREX) last issued its quarterly earnings results on Monday, November 8th. The construction company reported $0.64 earnings per share for the quarter, topping analysts’ consensus estimates of $0.58 by $0.06. Trex had a return on equity of 35.57% and a net margin of 20.21%. The company had revenue of $335.87 million for the quarter, compared to analyst estimates of $326.01 million. During the same quarter in the prior year, the company posted $0.41 EPS. The business’s revenue for the quarter was up 45.1% compared to the same quarter last year. On average, analysts anticipate that Trex will post 2.11 EPS for the current year.

In other news, CFO Dennis Charles Schemm sold 1,719 shares of the company’s stock in a transaction on Wednesday, November 10th. The stock was sold at an average price of $129.24, for a total transaction of $222,163.56. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Richard E. Posey sold 2,047 shares of the company’s stock in a transaction on Wednesday, November 10th. The shares were sold at an average price of $131.00, for a total value of $268,157.00. The disclosure for this sale can be found here. In the last 90 days, insiders sold 16,274 shares of company stock valued at $2,123,699. Insiders own 0.69% of the company’s stock.

A number of hedge funds have recently modified their holdings of TREX. SeaCrest Wealth Management LLC raised its stake in Trex by 4.1% during the 2nd quarter. SeaCrest Wealth Management LLC now owns 2,450 shares of the construction company’s stock valued at $250,000 after purchasing an additional 96 shares during the last quarter. National Asset Management Inc. raised its stake in Trex by 3.3% during the 3rd quarter. National Asset Management Inc. now owns 3,118 shares of the construction company’s stock valued at $318,000 after purchasing an additional 100 shares during the last quarter. Rockefeller Capital Management L.P. increased its holdings in Trex by 28.8% in the 3rd quarter. Rockefeller Capital Management L.P. now owns 479 shares of the construction company’s stock valued at $48,000 after buying an additional 107 shares during the period. Wealthcare Advisory Partners LLC grew its holdings in shares of Trex by 3.5% in the 2nd quarter. Wealthcare Advisory Partners LLC now owns 3,188 shares of the construction company’s stock worth $326,000 after purchasing an additional 108 shares during the last quarter. Finally, Advisory Services Network LLC grew its holdings in shares of Trex by 5.2% in the 2nd quarter. Advisory Services Network LLC now owns 2,547 shares of the construction company’s stock worth $260,000 after purchasing an additional 125 shares during the last quarter. 92.78% of the stock is currently owned by institutional investors.

Trex Company Profile

Trex Co, Inc engages in the manufacture of wood-alternative decking and railing. Its products include deck framing and drainage, outdoor lighting, furniture, pergola and outdoor kitchens, fencing, collections, and accessory hardware. It operates through the following segments Trex Residential Products and Trex Commercial Products.

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