Trex Company, Inc. (NYSE:TREX) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Wall Street’s consensus is “Moderate Buy”: Of 19 analysts covering Trex, 12 rate it Buy, six Hold and one Sell; the average one-year price target is $55.18.
• Trex beat quarterly expectations: Earnings were $0.55 per share versus a $0.48 consensus, while revenue rose 26% year over year to about $359.5 million. The article notes that a $30 million distributor load-in contributed to sales growth and may not recur.
• Analyst views were mixed, and insiders sold shares: Truist raised its target to $75 and maintained a Buy rating, while D.A. Davidson downgraded Trex to Neutral with a $55 target. Several executives also disclosed share sales.

Trex Company, Inc. (NYSE:TREX - Get Free Report) has received an average recommendation of "Moderate Buy" from the nineteen brokerages that are covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and twelve have assigned a buy rating to the company. The average 1-year target price among analysts that have covered the stock in the last year is $55.18.

A number of research firms recently commented on TREX. Stephens lifted their price target on Trex from $45.00 to $50.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 28th. DA Davidson lowered Trex from a "buy" rating to a "neutral" rating and set a $55.00 price objective on the stock. in a research note on Tuesday. Melius Research assumed coverage on Trex in a research report on Tuesday, October 6th. They issued a "buy" rating and a $62.00 price objective for the company. Stifel Nicolaus set a $55.00 price objective on Trex and gave the company a "buy" rating in a research report on Monday, October 19th. Finally, Truist Financial lifted their target price on Trex from $60.00 to $75.00 and gave the stock a "buy" rating in a research note on Thursday, November 5th.

Trex Trading Down 7.2%

Shares of TREX opened at $54.53 on Wednesday. The company has a market cap of $5.45 billion, a price-to-earnings ratio of 31.70, a PEG ratio of 3.17 and a beta of 1.46. Trex has a 1-year low of $29.77 and a 1-year high of $60.21. The company's fifty day simple moving average is $46.75 and its 200 day simple moving average is $43.56.

Trex (NYSE:TREX - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The construction company reported $0.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.07. The firm had revenue of $359.50 million for the quarter, compared to analyst estimates of $314.86 million. Trex had a net margin of 13.89% and a return on equity of 18.27%. The company's quarterly revenue was up 26.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.51 earnings per share. As a group, research analysts forecast that Trex will post 1.84 earnings per share for the current year.

More Trex News

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Trex reported third-quarter sales of about $360 million, up 26% year over year, and EPS of $0.55, topping the $0.48 analyst consensus. However, a $30 million distribution load-in contributed to sales, so some of the growth may not be recurring. Trex: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Trex’s Refuge decking was selected as a winner in Good Housekeeping’s 2027 Home Reno Awards, offering favorable product visibility. Trex Refuge Decking Selected as a Good Housekeeping 2027 Home Reno Awards Winner
• Neutral Sentiment: A market roundup listed TREX among stocks under pressure, but the report details provided do not specify a Trex-specific catalyst. Market roundup on falling shares
• Negative Sentiment: D.A. Davidson lowered its rating on Trex from Buy to Neutral and set a $55 price target, suggesting limited upside at the time of the report. This more cautious analyst stance is a potential near-term headwind.
• Negative Sentiment: CEO Adam Zambanini and several senior vice presidents disclosed share sales. The transactions were relatively small compared with their remaining holdings, but insider selling can add to investor caution. Trex insider transactions

Insider Activity at Trex

In other Trex news, SVP Jacob Rudolph sold 1,969 shares of the firm's stock in a transaction on Monday, November 9th. The stock was sold at an average price of $59.07, for a total transaction of $116,308.83. Following the completion of the sale, the senior vice president owned 37,462 shares of the company's stock, valued at $2,212,880.34. This trade represents a 4.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Amy M. Fernandez sold 1,231 shares of Trex stock in a transaction on Thursday, November 5th. The stock was sold at an average price of $57.87, for a total transaction of $71,237.97. Following the transaction, the senior vice president directly owned 66,563 shares of the company's stock, valued at approximately $3,852,000.81. This trade represents a 1.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 3,700 shares of company stock worth $215,467. Company insiders own 0.93% of the company's stock.

Institutional Trading of Trex

Hedge funds have recently modified their holdings of the stock. Focus Advisor Solutions LLC raised its holdings in Trex by 11.4% in the 3rd quarter. Focus Advisor Solutions LLC now owns 8,891 shares of the construction company's stock valued at $387,000 after acquiring an additional 909 shares during the period. Meeder Asset Management Inc. bought a new stake in shares of Trex during the third quarter worth approximately $33,000. Voya Investment Management LLC grew its position in shares of Trex by 6.2% in the third quarter. Voya Investment Management LLC now owns 8,373 shares of the construction company's stock valued at $365,000 after purchasing an additional 486 shares during the last quarter. Global Retirement Partners LLC grew its position in shares of Trex by 12.9% in the third quarter. Global Retirement Partners LLC now owns 2,474 shares of the construction company's stock valued at $108,000 after purchasing an additional 282 shares during the last quarter. Finally, Cibc World Market Inc. grew its position in shares of Trex by 50.1% in the third quarter. Cibc World Market Inc. now owns 24,021 shares of the construction company's stock valued at $1,046,000 after purchasing an additional 8,021 shares during the last quarter. Institutional investors and hedge funds own 95.96% of the company's stock.

About Trex

Trex Company, Inc. manufactures wood-alternative decking, railing and other outdoor-living products. Its composite decking is made primarily from reclaimed wood and recycled plastic, offering an alternative to traditional wood materials. The company's products include composite deck boards and railing systems, along with accessories such as outdoor lighting and drainage products. Trex sells through a network of distributors, dealers and retailers, serving customers primarily in North America as well as international markets.

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