Broad Bay Capital Management LP Invests $31.21 Million in Trex Company, Inc. $TREX

Key Points

• Broad Bay Capital Management LP has acquired 537,220 shares of Trex Company, Inc. for approximately $31.2 million, making it the firm's 7th largest position at 4.6% of their investment portfolio.
• Multiple hedge funds have increased their stakes in Trex during the first quarter, contributing to institutional investors owning approximately 96% of the company.
• Trex's stock has received mixed ratings from equities analysts, with a consensus of "Moderate Buy" and an average target price of $71.93, reflecting varied outlooks on the company's performance.

Broad Bay Capital Management LP acquired a new stake in Trex Company, Inc. (NYSE:TREX - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 537,220 shares of the construction company's stock, valued at approximately $31,212,000. Trex accounts for 4.6% of Broad Bay Capital Management LP's holdings, making the stock its 7th biggest holding. Broad Bay Capital Management LP owned 0.50% of Trex as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. State of Michigan Retirement System boosted its stake in shares of Trex by 0.8% in the 1st quarter. State of Michigan Retirement System now owns 25,622 shares of the construction company's stock valued at $1,489,000 after buying an additional 200 shares during the period. Stephens Inc. AR boosted its stake in shares of Trex by 3.7% in the 1st quarter. Stephens Inc. AR now owns 6,530 shares of the construction company's stock valued at $379,000 after buying an additional 236 shares during the period. ProShare Advisors LLC boosted its stake in shares of Trex by 5.8% in the 4th quarter. ProShare Advisors LLC now owns 5,013 shares of the construction company's stock valued at $346,000 after buying an additional 274 shares during the period. Louisiana State Employees Retirement System boosted its stake in shares of Trex by 1.0% in the 1st quarter. Louisiana State Employees Retirement System now owns 30,000 shares of the construction company's stock valued at $1,743,000 after buying an additional 300 shares during the period. Finally, State of Alaska Department of Revenue boosted its stake in shares of Trex by 2.7% in the 1st quarter. State of Alaska Department of Revenue now owns 12,546 shares of the construction company's stock valued at $728,000 after buying an additional 330 shares during the period. Hedge funds and other institutional investors own 95.96% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on TREX. JPMorgan Chase & Co. decreased their price objective on Trex from $73.00 to $71.00 and set a "neutral" rating for the company in a research note on Wednesday, August 6th. UBS Group reissued a "neutral" rating and set a $74.00 target price (up previously from $72.00) on shares of Trex in a research report on Tuesday, August 5th. Stephens cut their target price on Trex from $73.00 to $65.00 and set an "equal weight" rating on the stock in a research report on Monday, May 12th. Baird R W raised Trex from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 10th. Finally, DA Davidson set a $65.00 target price on Trex and gave the stock a "neutral" rating in a research report on Tuesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $71.93.

Insiders Place Their Bets

In other Trex news, SVP Amy M. Fernandez sold 1,538 shares of the stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $64.18, for a total transaction of $98,708.84. Following the completion of the sale, the senior vice president directly owned 22,953 shares of the company's stock, valued at approximately $1,473,123.54. This trade represents a 6.28% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.74% of the company's stock.

Trex Stock Performance

Trex stock traded down $1.41 during mid-day trading on Tuesday, reaching $60.22. 983,305 shares of the company were exchanged, compared to its average volume of 1,618,557. Trex Company, Inc. has a twelve month low of $49.01 and a twelve month high of $80.74. The firm's 50-day simple moving average is $62.02 and its two-hundred day simple moving average is $59.21. The firm has a market cap of $6.46 billion, a PE ratio of 34.81, a price-to-earnings-growth ratio of 2.58 and a beta of 1.51.

Trex (NYSE:TREX - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The construction company reported $0.74 earnings per share for the quarter, topping analysts' consensus estimates of $0.72 by $0.02. Trex had a return on equity of 21.27% and a net margin of 16.53%.The company had revenue of $387.80 million during the quarter, compared to analysts' expectations of $377.49 million. During the same period last year, the firm earned $0.80 EPS. The firm's revenue for the quarter was up 3.0% on a year-over-year basis. Trex has set its Q3 2025 guidance at EPS. As a group, equities research analysts anticipate that Trex Company, Inc. will post 2.04 EPS for the current year.

Trex 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.