Bank of Nova Scotia Takes Position in Trex Company, Inc. $TREX

Key Points

• Bank of Nova Scotia initiated a Trex position by purchasing 319,675 shares worth approximately $16 million, representing about 0.31% of the company. Institutional investors collectively own 95.96% of Trex.
• Trex reported quarterly earnings of $0.62 per share, slightly below the $0.63 consensus estimate, while revenue of $418.02 million exceeded expectations and increased 7.8% year over year.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $49.30 versus the stock’s cited price of $47.27. Two senior vice presidents also sold shares under pre-arranged trading plans.

Bank of Nova Scotia purchased a new stake in shares of Trex Company, Inc. (NYSE:TREX - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 319,675 shares of the construction company's stock, valued at approximately $15,997,000. Bank of Nova Scotia owned approximately 0.31% of Trex at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the company. AQR Capital Management LLC boosted its stake in shares of Trex by 3.2% in the first quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company's stock worth $320,000 after acquiring an additional 177 shares during the period. Benjamin Edwards Inc. raised its position in shares of Trex by 1.9% during the second quarter. Benjamin Edwards Inc. now owns 11,240 shares of the construction company's stock valued at $611,000 after buying an additional 214 shares during the last quarter. Pinnacle Associates Ltd. raised its position in shares of Trex by 0.7% during the fourth quarter. Pinnacle Associates Ltd. now owns 40,285 shares of the construction company's stock valued at $1,413,000 after buying an additional 285 shares during the last quarter. Hsbc Holdings PLC lifted its holdings in shares of Trex by 6.3% in the second quarter. Hsbc Holdings PLC now owns 5,403 shares of the construction company's stock worth $294,000 after buying an additional 322 shares in the last quarter. Finally, Nicolet Advisory Services LLC increased its holdings in Trex by 5.4% in the 3rd quarter. Nicolet Advisory Services LLC now owns 9,276 shares of the construction company's stock valued at $488,000 after acquiring an additional 478 shares during the last quarter. Hedge funds and other institutional investors own 95.96% of the company's stock.

Trex Trading Up 0.9%

TREX stock opened at $47.27 on Tuesday. The stock has a market cap of $4.91 billion, a PE ratio of 28.14, a P/E/G ratio of 3.23 and a beta of 1.48. Trex Company, Inc. has a 12 month low of $29.77 and a 12 month high of $66.06. The company has a 50-day moving average price of $46.74 and a 200 day moving average price of $42.40.

Trex (NYSE:TREX - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The construction company reported $0.62 earnings per share for the quarter, missing analysts' consensus estimates of $0.63 by ($0.01). The firm had revenue of $418.02 million during 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 business's revenue for the quarter was up 7.8% compared to the same quarter last year. During the same period last year, the company earned $0.71 earnings per share. Sell-side analysts forecast that Trex Company, Inc. will post 1.76 EPS for the current year.

Wall Street Analyst Weigh In

TREX has been the subject of a number of research analyst reports. Stifel Nicolaus set a $49.00 price objective on Trex and gave the company a "hold" rating in a research report on Tuesday, August 11th. Weiss Ratings cut Trex from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 18th. Zelman & Associates upgraded Trex from a "neutral" rating to an "outperform" rating and set a $50.00 target price for the company in a research report on Monday, May 18th. Bank of America increased their price objective on shares of Trex from $42.00 to $44.00 and gave the company an "underperform" rating in a research report on Tuesday, July 14th. Finally, DA Davidson reissued a "buy" rating and issued a $55.00 price objective on shares of Trex in a research note on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $49.30.

Insider Activity

In related news, SVP Jacob T. Rudolph sold 1,400 shares of Trex stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $50.00, for a total transaction of $70,000.00. Following the completion of the sale, the senior vice president owned 36,631 shares in the company, valued at $1,831,550. This trade represents a 3.68% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Amy M. Fernandez sold 1,050 shares of the company'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 completion of the transaction, the senior vice president owned 67,794 shares in the company, valued at $3,394,445.58. This represents a 1.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.93% of the company's stock.

Trex Profile

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company's core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex's product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.

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