Bank of America Corp DE Invests $94.85 Million in Trex Company, Inc. $TREX

Key Points

• Bank of America acquired 1.90 million Trex shares worth approximately $94.85 million, giving it an estimated 1.82% stake. Institutional investors and hedge funds collectively own 95.96% of TREX.
• Analyst sentiment is mixed, with a consensus rating of “Hold” and an average price target of $49.30; several firms recently raised targets to between $55 and $60 while maintaining Buy ratings.
• Trex reported quarterly revenue of $418.02 million, up 7.8% year over year and above estimates, but earnings of $0.62 per share narrowly missed expectations. The stock opened at $42.67, down 1.7%.

Bank of America Corp DE acquired a new stake in Trex Company, Inc. (NYSE:TREX - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 1,895,509 shares of the construction company's stock, valued at approximately $94,851,000. Bank of America Corp DE owned approximately 1.82% of Trex as of its most recent filing with the SEC.

Several other institutional investors have also made changes to their positions in TREX. Essential Partners LLC raised its holdings in shares of Trex by 24.6% in the 1st quarter. Essential Partners LLC now owns 3,383 shares of the construction company's stock worth $123,000 after buying an additional 669 shares in the last quarter. Global Retirement Partners LLC grew its stake in Trex by 15.5% during the fourth quarter. Global Retirement Partners LLC now owns 5,490 shares of the construction company's stock worth $193,000 after buying an additional 735 shares during the last quarter. Parallel Advisors LLC increased its holdings in shares of Trex by 77.6% during the first quarter. Parallel Advisors LLC now owns 2,120 shares of the construction company's stock worth $77,000 after buying an additional 926 shares in the last quarter. Clearstead Trust LLC bought a new position in shares of Trex in the fourth quarter valued at approximately $33,000. Finally, Red Spruce Capital LLC raised its stake in shares of Trex by 2.3% in the second quarter. Red Spruce Capital LLC now owns 49,410 shares of the construction company's stock valued at $2,472,000 after acquiring an additional 1,101 shares during the last quarter. 95.96% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. The Goldman Sachs Group reissued a "buy" rating and issued a $56.00 price target (up from $49.00) on shares of Trex in a report on Friday, July 10th. BMO Capital Markets set a $57.00 price objective on Trex in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $51.00 price objective (up from $41.00) on shares of Trex in a research report on Tuesday, July 14th. DA Davidson restated a "buy" rating and set a $55.00 target price on shares of Trex in a research report on Tuesday, July 14th. Finally, Truist Financial boosted their target price on Trex from $55.00 to $60.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Ten investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $49.30.

Trex Trading Down 1.7%

Shares of NYSE TREX opened at $42.67 on Friday. The firm has a market cap of $4.43 billion, a P/E ratio of 25.40, a price-to-earnings-growth ratio of 2.99 and a beta of 1.47. Trex Company, Inc. has a 1-year low of $29.77 and a 1-year high of $54.30. The business's 50 day moving average is $45.58 and its 200-day moving average is $42.69.

Trex (NYSE:TREX - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The construction company reported $0.62 earnings per share for the quarter, missing the consensus estimate of $0.63 by ($0.01). Trex had a net margin of 14.68% and a return on equity of 18.03%. The company had revenue of $418.02 million during the quarter, compared to analyst estimates of $415.71 million. During the same period in the prior year, the firm earned $0.71 earnings per share. Trex's revenue was up 7.8% on a year-over-year basis. Analysts forecast that Trex Company, Inc. will post 1.76 EPS for the current year.

Insider Buying and Selling at Trex

In other news, SVP Amy M. Fernandez sold 1,050 shares of the stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $50.07, for a total value of $52,573.50. Following the completion of the sale, the senior vice president owned 67,794 shares of the company's stock, valued at approximately $3,394,445.58. This represents a 1.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, 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 transaction, 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 ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.93% of the company's stock.

Trex Company Profile

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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