Trex Company, Inc. (NYSE:TREX) Given Consensus Recommendation of "Hold" by Analysts

Key Points

• Analysts have a consensus “Hold” rating on Trex, with 10 buys, nine holds, two sells and one strong buy among 22 analysts. The average 12-month price target is $49.30.
• Trex’s latest quarterly results were mixed: revenue rose 7.8% year over year to $418.02 million and exceeded estimates, while EPS of $0.62 narrowly missed the $0.63 consensus.
• Institutional ownership remains high at 95.96%, with major investors including BlackRock and Wellington increasing or initiating positions; meanwhile, two senior vice presidents sold shares under disclosed transactions.

Trex Company, Inc. (NYSE:TREX - Get Free Report) has received an average rating of "Hold" from the twenty-two analysts that are currently covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, ten have given a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $49.30.

TREX has been the subject of several research reports. Bank of America upped their target price on shares of Trex from $42.00 to $44.00 and gave the stock an "underperform" rating in a research report on Tuesday, July 14th. Zelman & Associates upgraded Trex from a "neutral" rating to an "outperform" rating and set a $50.00 price objective for the company in a report on Monday, May 18th. Zacks Research upgraded Trex from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 15th. BMO Capital Markets set a $57.00 price objective on Trex in a report on Wednesday, August 5th. Finally, Wall Street Zen raised Trex from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th.

Insider Buying and Selling

In related news, SVP Amy M. Fernandez sold 1,050 shares of Trex stock in a transaction on Friday, August 7th. The shares were sold at an average price of $50.07, for a total value of $52,573.50. Following the transaction, the senior vice president owned 67,794 shares in the company, valued at $3,394,445.58. This trade represents a 1.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Jacob T. Rudolph sold 1,400 shares of the business's stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $50.00, for a total transaction of $70,000.00. Following the completion of the sale, the senior vice president directly owned 36,631 shares of the company's stock, valued at $1,831,550. This represents a 3.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.93% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in Trex during the 2nd quarter valued at about $525,081,000. Wellington Management Group LLP increased its stake in Trex by 18.2% in the 2nd 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 during the period. California State Teachers Retirement System increased its stake in Trex by 4,531.0% in the 2nd quarter. California State Teachers Retirement System now owns 5,988,837 shares of the construction company's stock worth $299,681,000 after purchasing an additional 5,859,516 shares during the period. AQR Capital Management LLC lifted its position in Trex by 143.8% in the fourth quarter. AQR Capital Management LLC now owns 3,895,534 shares of the construction company's stock valued at $136,655,000 after purchasing an additional 2,297,533 shares during the last quarter. Finally, Morgan Stanley lifted its position in Trex by 44.6% in the fourth quarter. Morgan Stanley now owns 2,313,285 shares of the construction company's stock valued at $81,150,000 after purchasing an additional 713,054 shares during the last quarter. Hedge funds and other institutional investors own 95.96% of the company's stock.

Trex Trading Down 1.1%

Shares of NYSE TREX opened at $46.15 on Friday. The business has a 50-day moving average of $46.74 and a 200-day moving average of $42.46. The firm has a market capitalization of $4.80 billion, a price-to-earnings ratio of 27.47, a PEG ratio of 3.22 and a beta of 1.48. Trex has a 12 month low of $29.77 and a 12 month high of $66.06.

Trex (NYSE:TREX - Get Free Report) last announced its 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 for the quarter, compared to the consensus estimate of $415.71 million. Trex had a net margin of 14.68% and a return on equity of 18.03%. The company's revenue for the quarter was up 7.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.71 earnings per share. On average, analysts predict that Trex will post 1.76 earnings per share for the current year.

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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