DA Davidson Has Negative Outlook for Trex FY2025 Earnings

Key Points

• DA Davidson has revised its FY2025 earnings per share (EPS) estimate for Trex to $2.18, down from $2.19, maintaining a "Neutral" rating with a target price of $60.00.
• Trex reported $0.74 EPS for its latest quarter, exceeding analysts' expectations, with a net margin of 16.53% and year-over-year revenue growth of 3.0%.
• Several research firms, including Robert W. Baird and B. Riley, have recently upgraded Trex's stock rating, with price targets as high as $75.00.

Trex Company, Inc. (NYSE:TREX - Free Report) - Research analysts at DA Davidson lowered their FY2025 EPS estimates for shares of Trex in a report released on Friday, October 10th. DA Davidson analyst K. Yinger now forecasts that the construction company will post earnings per share of $2.18 for the year, down from their previous estimate of $2.19. DA Davidson currently has a "Neutral" rating and a $60.00 target price on the stock. The consensus estimate for Trex's current full-year earnings is $2.04 per share. DA Davidson also issued estimates for Trex's FY2026 earnings at $2.37 EPS.

Trex (NYSE:TREX - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The construction company reported $0.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.72 by $0.02. Trex had a net margin of 16.53% and a return on equity of 21.27%. The firm had revenue of $387.80 million for the quarter, compared to analysts' expectations of $377.49 million. During the same period last year, the firm earned $0.80 earnings per share. The business's revenue for the quarter was up 3.0% on a year-over-year basis. Trex has set its Q3 2025 guidance at EPS.

Several other research firms have also issued reports on TREX. Robert W. Baird upgraded Trex from a "neutral" rating to an "outperform" rating and raised their price target for the stock from $65.00 to $75.00 in a research report on Thursday, July 10th. B. Riley upgraded Trex to a "strong-buy" rating in a report on Monday, July 21st. Stifel Nicolaus set a $61.00 price objective on shares of Trex and gave the stock a "buy" rating in a research note on Wednesday. Weiss Ratings reissued a "hold (c-)" rating on shares of Trex in a research note on Wednesday, October 8th. Finally, Loop Capital reissued a "hold" rating and set a $66.00 price objective on shares of Trex in a research note on Tuesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $70.87.

Trex Stock Down 4.3%

NYSE:TREX opened at $50.25 on Monday. Trex has a 12-month low of $49.01 and a 12-month high of $80.74. The firm has a market capitalization of $5.39 billion, a P/E ratio of 29.05, a P/E/G ratio of 2.10 and a beta of 1.49. The stock's fifty day simple moving average is $58.55 and its 200-day simple moving average is $58.32.

Insiders Place Their Bets

In other Trex news, SVP Amy M. Fernandez sold 1,538 shares of Trex stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $64.18, for a total value of $98,708.84. Following the transaction, the senior vice president owned 22,953 shares of the company's stock, valued at approximately $1,473,123.54. The trade was a 6.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 0.74% of the company's stock.

Institutional Investors Weigh In On Trex

Institutional investors have recently bought and sold shares of the company. CWM LLC lifted its position in shares of Trex by 16.8% during the 2nd quarter. CWM LLC now owns 1,141 shares of the construction company's stock worth $62,000 after buying an additional 164 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Trex by 3.2% during the 1st quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company's stock worth $320,000 after buying an additional 177 shares in the last quarter. ProShare Advisors LLC lifted its holdings in Trex by 4.1% during the second quarter. ProShare Advisors LLC now owns 4,754 shares of the construction company's stock worth $259,000 after acquiring an additional 189 shares during the period. State of Michigan Retirement System lifted its holdings in Trex by 0.8% during the first quarter. State of Michigan Retirement System now owns 25,622 shares of the construction company's stock worth $1,489,000 after acquiring an additional 200 shares during the period. Finally, Louisiana State Employees Retirement System lifted its holdings in Trex by 0.7% during the second quarter. Louisiana State Employees Retirement System now owns 30,200 shares of the construction company's stock worth $1,642,000 after acquiring an additional 200 shares during the period. Institutional investors own 95.96% of the company's stock.

Trex Company Profile

Trex Company, Inc manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps.

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