Bank of America Lowers Trex (NYSE:TREX) Price Target to $42.00

Key Points

• Bank of America cut its price target on Trex from $43.00 to $42.00 and maintains an "underperform" rating, implying roughly a 1.65% downside from the prior close.
• Analysts are split on TREX—10 Buys, 10 Holds and 3 Sells—with an overall average rating of "Hold" and an average price target of $47.88.
• Trex beat Q4 estimates, reporting EPS $0.04 vs. ($0.01) expected and revenue of $161.13M vs. $144.39M expected; the stock trades around $42.71 with a market cap of about $4.44B.

Trex (NYSE:TREX - Get Free Report) had its price target cut by analysts at Bank of America from $43.00 to $42.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has an "underperform" rating on the construction company's stock. Bank of America's target price indicates a potential downside of 1.65% from the stock's previous close.

Several other equities analysts have also recently issued reports on TREX. Loop Capital upgraded Trex from a "hold" rating to a "buy" rating and boosted their target price for the stock from $45.00 to $53.00 in a research report on Wednesday, February 25th. UBS Group boosted their target price on Trex from $52.00 to $58.00 and gave the stock a "buy" rating in a research report on Wednesday, February 25th. Wall Street Zen cut Trex from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Stifel Nicolaus set a $37.50 price target on Trex and gave the stock a "hold" rating in a report on Monday, February 23rd. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Trex in a research note on Friday, March 27th. Ten analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, Trex has an average rating of "Hold" and an average price target of $47.88.

Trex Stock Down 0.2%

Shares of TREX stock opened at $42.71 on Monday. The stock has a market capitalization of $4.44 billion, a PE ratio of 24.13, a price-to-earnings-growth ratio of 9.89 and a beta of 1.61. Trex has a 52-week low of $29.77 and a 52-week high of $68.78. The stock's 50-day moving average price is $39.24 and its 200 day moving average price is $40.03.

Trex (NYSE:TREX - Get Free Report) last issued its quarterly earnings results on Tuesday, February 24th. The construction company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.01) by $0.05. The firm had revenue of $161.13 million for the quarter, compared to analysts' expectations of $144.39 million. Trex had a return on equity of 20.29% and a net margin of 16.22%.The firm's revenue for the quarter was down 3.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.09 EPS. Analysts expect that Trex will post 2.04 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. SG Americas Securities LLC raised its position in shares of Trex by 17.5% in the 1st quarter. SG Americas Securities LLC now owns 121,784 shares of the construction company's stock worth $4,435,000 after buying an additional 18,181 shares during the period. Hsbc Holdings PLC raised its position in Trex by 97.6% in the fourth quarter. Hsbc Holdings PLC now owns 68,812 shares of the construction company's stock valued at $2,428,000 after purchasing an additional 33,991 shares during the period. Rockefeller Capital Management L.P. raised its position in Trex by 155.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 6,260 shares of the construction company's stock valued at $220,000 after purchasing an additional 3,810 shares during the period. Corient Private Wealth LLC raised its position in Trex by 159.3% in the fourth quarter. Corient Private Wealth LLC now owns 10,052 shares of the construction company's stock valued at $353,000 after purchasing an additional 6,175 shares during the period. Finally, Invesco Ltd. raised its position in Trex by 38.8% in the fourth quarter. Invesco Ltd. now owns 287,265 shares of the construction company's stock valued at $10,077,000 after purchasing an additional 80,261 shares during the period. 95.96% of the stock is owned by hedge funds and other institutional investors.

About Trex

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company's core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex's product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.

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