Trex Company, Inc. (TREX) - What Are Analysts Saying About This Stock?

Key Points

• Analysts have a consensus “Hold” rating on Trex, with 12 buys, 9 holds, and 2 sells among 23 firms. The average 12-month price target is $50.19, implying modest upside from the reported $45.72 share price.
• Recent analyst views range from Melius Research’s “Buy” rating with a $62 target to Stephens’ “Equal Weight” rating with a $50 target; Citigroup raised its target to $52 while maintaining a neutral stance.
• Trex’s latest quarter showed 7.8% year-over-year revenue growth to $418.02 million, but earnings of $0.62 per share narrowly missed estimates. Institutional investors own 95.96% of the stock, while insiders hold just 0.93%.

Trex Company, Inc. (NYSE:TREX - Get Free Report) has been given a consensus rating of "Hold" by the twenty-three ratings firms that are presently covering the firm, MarketBeat.com reports. Two research analysts have rated the stock with a sell rating, nine have given a hold rating and twelve have assigned a buy rating to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $50.19.

TREX has been the topic of a number of research reports. Melius Research began coverage on shares of Trex in a research note on Tuesday, October 6th. They issued a "buy" rating and a $62.00 target price on the stock. Citigroup restated a "neutral" rating and set a $52.00 target price (up from $43.00) on shares of Trex in a report on Wednesday, July 15th. Stephens upped their price target on shares of Trex from $45.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 28th. Weiss Ratings raised shares of Trex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, September 1st. Finally, DA Davidson reiterated a "buy" rating and issued a $55.00 price target on shares of Trex in a report on Tuesday, July 14th.

Insider Activity at Trex

In other Trex news, SVP Amy M. Fernandez sold 1,050 shares of the business's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $50.07, for a total transaction of $52,573.50. Following the transaction, the senior vice president owned 67,794 shares in the company, valued at $3,394,445.58. The trade was a 1.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.93% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Trex

Several hedge funds have recently modified their holdings of the stock. Versant Capital Management Inc acquired a new position in Trex during the 2nd quarter worth approximately $58,000. Ascentis Independent Advisors acquired a new stake in Trex in the first quarter valued at approximately $44,000. Elevation Wealth Partners LLC grew its position in Trex by 250.7% in the third quarter. Elevation Wealth Partners LLC now owns 1,224 shares of the construction company's stock valued at $53,000 after acquiring an additional 875 shares in the last quarter. GAMMA Investing LLC grew its position in Trex by 104.7% in the third quarter. GAMMA Investing LLC now owns 1,269 shares of the construction company's stock valued at $55,000 after acquiring an additional 649 shares in the last quarter. Finally, IFP Advisors Inc raised its stake in shares of Trex by 76.0% during the second quarter. IFP Advisors Inc now owns 1,584 shares of the construction company's stock valued at $79,000 after purchasing an additional 684 shares during the period. 95.96% of the stock is currently owned by hedge funds and other institutional investors.

Trex Stock Performance

TREX opened at $45.72 on Friday. The firm has a 50 day moving average price of $45.38 and a 200 day moving average price of $43.61. The company has a market cap of $4.75 billion, a PE ratio of 27.21, a price-to-earnings-growth ratio of 2.68 and a beta of 1.48. Trex has a 1 year low of $29.77 and a 1 year high of $51.75.

Trex (NYSE:TREX - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The construction company reported $0.62 EPS for the quarter, missing the consensus estimate of $0.63 by ($0.01). The business had revenue of $418.02 million during the quarter, compared to analysts' expectations of $415.71 million. Trex had a net margin of 14.68% and a return on equity of 18.03%. The company's quarterly revenue was up 7.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.71 EPS. On average, sell-side analysts predict that Trex will post 1.77 earnings per share for the current year.

Trex Company Profile

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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