Trex Company, Inc. (NYSE:TREX) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Trex, with 10 buys, 10 holds and two sells among 22 firms. The average 12-month price target is $49.30, above the stock’s reported $42.93 opening price.
• 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 fell short of the $0.63 consensus.
• Institutional ownership remains very high at 95.96%, with major investors including BlackRock, Bank of America, Norges Bank and Wellington Management. Two senior executives also sold shares, though both transactions were conducted under pre-arranged trading plans.

Shares of Trex Company, Inc. (NYSE:TREX - Get Free Report) have earned an average recommendation of "Hold" from the twenty-two research firms that are currently covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell recommendation, ten have assigned a hold recommendation and ten have given a buy recommendation to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $49.30.

A number of research analysts have weighed in on the company. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $51.00 target price (up from $41.00) on shares of Trex in a report on Tuesday, July 14th. Weiss Ratings upgraded shares of Trex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, September 1st. Truist Financial boosted their price objective on shares of Trex from $55.00 to $60.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. DA Davidson reissued a "buy" rating and issued a $55.00 price target on shares of Trex in a report on Tuesday, July 14th. Finally, The Goldman Sachs Group restated a "buy" rating and set a $56.00 price target (up from $49.00) on shares of Trex in a research report on Friday, July 10th.

Trex Trading Up 0.6%

Trex stock opened at $42.93 on Tuesday. Trex has a 1-year low of $29.77 and a 1-year high of $54.30. The firm has a market capitalization of $4.46 billion, a price-to-earnings ratio of 25.55, a P/E/G ratio of 2.94 and a beta of 1.47. The firm has a 50 day simple moving average of $45.52 and a 200 day simple moving average of $42.72.

Trex (NYSE:TREX - Get Free Report) last posted 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 analysts' expectations of $415.71 million. Trex had a return on equity of 18.03% and a net margin of 14.68%.The company's revenue was up 7.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.71 EPS. On average, equities research analysts forecast that Trex will post 1.76 EPS for the current year.

Insider Buying and Selling at Trex

In other Trex news, SVP Jacob T. Rudolph sold 1,400 shares of the firm's 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 sale, the senior vice president owned 36,631 shares of the company's stock, valued at $1,831,550. This trade represents a 3.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at 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 Trex stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $50.07, for a total value of $52,573.50. Following the sale, the senior vice president owned 67,794 shares of the company's stock, valued at approximately $3,394,445.58. This trade represents a 1.53% decrease in their position. The SEC filing for this sale provides additional information. 0.93% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Trex

A number of institutional investors and hedge funds have recently bought and sold shares of TREX. BlackRock Inc. bought a new position in shares of Trex during the 2nd quarter valued at about $525,081,000. Bank of America Corp DE bought a new stake in Trex in the 2nd quarter worth approximately $94,851,000. Norges Bank bought a new stake in Trex in the 4th quarter worth approximately $62,904,000. Wellington Management Group LLP boosted its stake in Trex by 18.2% in the second quarter. Wellington Management Group LLP now owns 9,877,116 shares of the construction company's stock worth $494,251,000 after buying an additional 1,518,338 shares in the last quarter. Finally, Freestone Grove Partners LP bought a new position in Trex during the second quarter valued at approximately $36,197,000. 95.96% of the stock is 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.

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