Trex (NYSE:TREX) Downgraded to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded Trex to “Hold” from “Strong Buy.” The broader analyst consensus is also “Hold,” with an average price target of $49.30 versus the stock’s $43.61 opening price.
• Trex’s latest quarterly results were mixed: earnings per share of $0.62 narrowly missed estimates, while revenue of $418.02 million exceeded forecasts and increased 7.8% year over year.
• Institutional investors own 95.96% of Trex’s shares, with several hedge funds increasing their positions during the second quarter. Two senior vice presidents sold shares under pre-arranged trading plans, while insider ownership stands at 0.93%.

Trex (NYSE:TREX - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday, Zacks reports.

Several other brokerages also recently weighed in on TREX. Stifel Nicolaus set a $49.00 target price on shares of Trex and gave the stock a "hold" rating in a research note on Tuesday, August 11th. Stephens raised their price target on shares of Trex from $45.00 to $50.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 28th. Bank of America boosted their price target on shares of Trex from $42.00 to $44.00 and gave the stock an "underperform" rating in a research note on Tuesday, July 14th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $56.00 price objective (up from $49.00) on shares of Trex in a research report on Friday, July 10th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $51.00 price objective (up from $41.00) on shares of Trex in a research note on Tuesday, July 14th. Ten investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $49.30.

Trex Trading Down 0.1%

TREX stock opened at $43.61 on Monday. The business's fifty day moving average price is $45.79 and its 200 day moving average price is $42.67. Trex has a 12-month low of $29.77 and a 12-month high of $60.28. The company has a market capitalization of $4.53 billion, a PE ratio of 25.96, a P/E/G ratio of 3.01 and a beta of 1.47.

Trex (NYSE:TREX - Get Free Report) last released its earnings results on Tuesday, August 4th. The construction company reported $0.62 earnings per share for the quarter, missing the consensus estimate of $0.63 by ($0.01). The firm had revenue of $418.02 million during the quarter, compared to analyst estimates of $415.71 million. Trex had a net margin of 14.68% and a return on equity of 18.03%. The business's revenue was up 7.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.71 earnings per share. Research analysts predict that Trex will post 1.76 EPS for the current fiscal year.

Insider Buying and Selling at Trex

In other news, SVP Jacob T. Rudolph sold 1,400 shares of the stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $50.00, for a total value of $70,000.00. Following the transaction, the senior vice president owned 36,631 shares in the company, valued at approximately $1,831,550. This represents a 3.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Amy M. Fernandez sold 1,050 shares of the firm's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $50.07, for a total value of $52,573.50. Following the sale, the senior vice president directly owned 67,794 shares in the company, valued at $3,394,445.58. This trade represents a 1.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.93% of the company's stock.

Hedge Funds Weigh In On Trex

Several hedge funds have recently added to or reduced their stakes in 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 raised its stake 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 in the last quarter. Tidal Investments LLC raised its stake 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 in the last quarter. WINTON GROUP Ltd lifted its position in Trex by 449.0% in the second quarter. WINTON GROUP Ltd now owns 194,459 shares of the construction company's stock valued at $9,731,000 after acquiring an additional 159,039 shares during the last quarter. Finally, NewEdge Advisors LLC lifted its position in Trex by 858.1% in the second quarter. NewEdge Advisors LLC now owns 5,988 shares of the construction company's stock valued at $300,000 after acquiring an additional 5,363 shares during the last quarter. 95.96% of the stock is currently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.