Hsbc Holdings PLC Invests $4.27 Million in Trex Company, Inc. $TREX

Key Points

• Hsbc Holdings PLC initiated a $4.27 million stake in Trex Company during the second quarter, purchasing 85,641 shares and owning approximately 0.08% of the company. Institutional investors collectively hold 95.96% of Trex’s stock.
• Trex’s latest quarterly revenue rose 7.8% year over year to $418.02 million, exceeding estimates, but earnings per share of $0.62 fell just short of the $0.63 consensus. Analysts project full-year EPS of $1.76.
• Analyst views remain mixed: Trex has an average “Hold” rating and a $49.30 price target, while recent price targets range from $44 to $61. The stock opened at $45.84 and has traded between $29.77 and $66.06 over the past year.

Hsbc Holdings PLC bought a new stake in Trex Company, Inc. (NYSE:TREX - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 85,641 shares of the construction company's stock, valued at approximately $4,271,000. Hsbc Holdings PLC owned 0.08% of Trex at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. AQR Capital Management LLC increased its holdings in Trex by 3.2% in the 1st quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company's stock valued at $320,000 after purchasing an additional 177 shares in the last quarter. Benjamin Edwards Inc. lifted its stake 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 worth $611,000 after purchasing an additional 214 shares in the last quarter. Pinnacle Associates Ltd. boosted its position in shares of Trex by 0.7% in the fourth quarter. Pinnacle Associates Ltd. now owns 40,285 shares of the construction company's stock worth $1,413,000 after buying an additional 285 shares during the period. Nicolet Advisory Services LLC boosted its position in shares of Trex by 5.4% in the third quarter. Nicolet Advisory Services LLC now owns 9,276 shares of the construction company's stock worth $488,000 after buying an additional 478 shares during the period. Finally, Curi Capital LLC grew its stake in shares of Trex by 0.9% in the second quarter. Curi Capital LLC now owns 63,431 shares of the construction company's stock valued at $3,449,000 after buying an additional 550 shares in the last quarter. Institutional investors and hedge funds own 95.96% of the company's stock.

Trex Stock Performance

Shares of TREX opened at $45.84 on Friday. Trex Company, Inc. has a one year low of $29.77 and a one year high of $66.06. The stock has a 50-day moving average price of $46.72 and a 200 day moving average price of $42.49. The company has a market capitalization of $4.76 billion, a P/E ratio of 27.29, a P/E/G ratio of 3.16 and a beta of 1.48.

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 (EPS) for the quarter, missing the consensus estimate of $0.63 by ($0.01). The business had revenue of $418.02 million for 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%.Trex's revenue for the quarter was up 7.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.71 earnings per share. As a group, equities research analysts forecast that Trex Company, Inc. will post 1.76 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Amy M. Fernandez sold 1,050 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $50.07, for a total value of $52,573.50. Following the sale, the senior vice president owned 67,794 shares in the company, valued at approximately $3,394,445.58. This represents a 1.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Jacob T. Rudolph sold 1,400 shares of the stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $50.00, for a total transaction of $70,000.00. Following the transaction, the senior vice president directly owned 36,631 shares in the company, valued at $1,831,550. The trade was a 3.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.93% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on TREX shares. Zacks Research raised Trex from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 15th. 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. Truist Financial lifted their price objective on shares of Trex from $55.00 to $60.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. UBS Group restated a "buy" rating and issued a $61.00 target price (up from $59.00) on shares of Trex in a research note on Tuesday, July 14th. Finally, Weiss Ratings lowered shares of Trex from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 18th. One 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 company's stock. According to data from MarketBeat.com, Trex has an average rating of "Hold" and an average price target of $49.30.

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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