Trex (NYSE:TREX) Stock Picked Up by Analysts at Melius Research

Key Points

• Melius Research initiated coverage of Trex with a “buy” rating and a $62 price target, implying approximately 40.2% upside from the stock’s prior close.
• Analyst sentiment remains mixed: Trex has a consensus “hold” rating from 23 analysts, with an average price target of $49.90.
• Trex’s latest quarterly revenue rose 7.8% year over year to $418.02 million, though earnings of $0.62 per share narrowly missed estimates and declined from $0.71 a year earlier.

Equities researchers at Melius Research assumed coverage on shares of Trex (NYSE:TREX - Get Free Report) in a research report issued to clients and investors on Tuesday, Briefing.com reports. The brokerage set a "buy" rating and a $62.00 price target on the construction company's stock. Melius Research's target price suggests a potential upside of 40.16% from the stock's previous close.

TREX has been the subject of several other research reports. Wall Street Zen raised Trex from a "sell" rating to a "hold" rating in a report on Sunday, July 12th. Stephens lifted their price objective on Trex from $45.00 to $50.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $51.00 price objective (up from $41.00) on shares of Trex in a research report on Tuesday, July 14th. Citigroup restated a "neutral" rating and issued a $52.00 target price (up from $43.00) on shares of Trex in a research note on Wednesday, July 15th. Finally, DA Davidson reaffirmed a "buy" rating and issued a $55.00 target price on shares of Trex in a research report on Tuesday, July 14th. Eleven equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $49.90.

Trex Price Performance

NYSE TREX opened at $44.23 on Tuesday. The company's fifty day moving average is $45.56 and its two-hundred day moving average is $43.14. Trex has a 52-week low of $29.77 and a 52-week high of $54.30. The firm has a market capitalization of $4.60 billion, a price-to-earnings ratio of 26.33, a P/E/G ratio of 3.00 and a beta of 1.48.

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

Insiders Place Their Bets

In other news, SVP Amy M. Fernandez sold 1,050 shares of the company's stock in a transaction that occurred 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 sale, the senior vice president directly owned 67,794 shares in the company, valued at approximately $3,394,445.58. This represents a 1.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 0.93% of the company's stock.

Institutional Trading of Trex

Several institutional investors have recently bought and sold shares of TREX. Central Pacific Bank Trust Division bought a new position in shares of Trex during the third quarter valued at $220,000. Versant Capital Management Inc grew its holdings in shares of Trex by 129.1% in the 3rd quarter. Versant Capital Management Inc now owns 2,676 shares of the construction company's stock worth $117,000 after purchasing an additional 1,508 shares during the last quarter. Cim Investment Management Inc. acquired a new stake in shares of Trex during the 2nd quarter worth about $239,000. Junto Capital Management LP bought a new position in Trex during the 2nd quarter valued at about $20,074,000. Finally, Sequoia Financial Advisors LLC grew its stake in Trex by 18.3% during the second quarter. Sequoia Financial Advisors LLC now owns 10,131 shares of the construction company's stock worth $507,000 after buying an additional 1,567 shares during the last quarter. Institutional investors and hedge funds own 95.96% of the company's stock.

About Trex

Trex Company, Inc designs, manufactures and distributes composite decking, railing and related outdoor-living products. Its portfolio includes residential and commercial decking systems, railing, outdoor lighting, furniture, and other accessories sold under the Trex brand. The company's products are positioned as alternatives to traditional wood and are designed to provide durability and lower maintenance.

Trex composite products are made primarily from reclaimed wood fibers and recycled polyethylene film, including materials such as used plastic bags and packaging.

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