Trex Company, Inc. (NYSE:TREX) Shares Sold by Federated Hermes Inc.

Key Points

• Federated Hermes Inc. reduced its stake in Trex Company, Inc. by 26.7%, selling 334,090 shares and owning 915,927 shares worth approximately $53.2 million as of the end of the first quarter.
• Institutional investors collectively own 95.96% of Trex's stock, with several hedge funds increasing their positions significantly, including Huntington National Bank boosting holdings by 227.2% in the last quarter.
• Despite mixed analyst ratings, Trex's stock maintains a consensus rating of "Moderate Buy" with an average target price of $74.88, indicating some optimism for its future performance.

Federated Hermes Inc. reduced its position in Trex Company, Inc. (NYSE:TREX - Free Report) by 26.7% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 915,927 shares of the construction company's stock after selling 334,090 shares during the period. Federated Hermes Inc. owned 0.85% of Trex worth $53,215,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the company. Huntington National Bank raised its holdings in shares of Trex by 227.2% in the fourth quarter. Huntington National Bank now owns 566 shares of the construction company's stock worth $39,000 after buying an additional 393 shares during the period. Blue Trust Inc. raised its holdings in shares of Trex by 55.9% in the first quarter. Blue Trust Inc. now owns 1,138 shares of the construction company's stock worth $66,000 after buying an additional 408 shares during the period. GAMMA Investing LLC raised its holdings in shares of Trex by 137.7% in the first quarter. GAMMA Investing LLC now owns 1,666 shares of the construction company's stock worth $97,000 after buying an additional 965 shares during the period. Resona Asset Management Co. Ltd. purchased a new stake in shares of Trex in the fourth quarter worth approximately $122,000. Finally, Bessemer Group Inc. raised its holdings in shares of Trex by 9.1% in the fourth quarter. Bessemer Group Inc. now owns 2,034 shares of the construction company's stock worth $140,000 after buying an additional 170 shares during the period. 95.96% of the stock is currently owned by hedge funds and other institutional investors.

Trex Stock Performance

Shares of TREX stock traded down $0.68 during mid-day trading on Friday, hitting $63.56. 1,525,275 shares of the stock were exchanged, compared to its average volume of 1,432,934. The stock's fifty day simple moving average is $59.07 and its two-hundred day simple moving average is $60.59. The stock has a market capitalization of $6.82 billion, a price-to-earnings ratio of 34.92, a P/E/G ratio of 2.67 and a beta of 1.51. Trex Company, Inc. has a 12-month low of $49.01 and a 12-month high of $80.74.

Trex (NYSE:TREX - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The construction company reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.02. The company had revenue of $339.99 million for the quarter, compared to analyst estimates of $329.11 million. Trex had a return on equity of 22.78% and a net margin of 17.69%. The business's quarterly revenue was down 9.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.82 earnings per share. On average, research analysts expect that Trex Company, Inc. will post 2.04 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Baird R W raised Trex from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 10th. Citigroup dropped their price objective on Trex from $78.00 to $60.00 and set a "neutral" rating on the stock in a research note on Friday, April 11th. BMO Capital Markets raised Trex from a "market perform" rating to an "outperform" rating and set a $72.00 price objective on the stock in a research note on Thursday, April 17th. Robert W. Baird raised Trex from a "neutral" rating to an "outperform" rating and increased their price objective for the stock from $65.00 to $75.00 in a research note on Thursday, July 10th. Finally, Stephens dropped 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. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating, seven have issued a buy rating and two have given a strong buy rating to the company. According to MarketBeat, Trex has a consensus rating of "Moderate Buy" and a consensus target price of $74.88.

Insider Activity

In other news, SVP Amy M. Fernandez sold 2,366 shares of the stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $61.17, for a total transaction of $144,728.22. Following the completion of the sale, the senior vice president owned 24,569 shares in the company, valued at approximately $1,502,885.73. This represents a 8.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Jacob T. Rudolph sold 1,500 shares of the stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $60.27, for a total transaction of $90,405.00. Following the sale, the senior vice president owned 27,527 shares of the company's stock, valued at $1,659,052.29. This trade represents a 5.17% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.71% of the company's stock.

About Trex

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.