Hsbc Holdings PLC Purchases 33,991 Shares of Trex Company, Inc. $TREX

Key Points

• HSBC Holdings PLC nearly doubled its Trex stake in the fourth quarter, buying 33,991 additional shares and lifting its holdings to 68,812 shares worth about $2.43 million.
• Trex reported a solid latest quarter, with earnings per share of $0.59, topping estimates, and revenue of $343.4 million, also above expectations. Revenue rose 1% year over year.
• Analysts remain mixed on the stock, with a consensus rating of Hold and an average price target of $46.79, while shares recently traded around $47.14.

Hsbc Holdings PLC raised its position in Trex Company, Inc. (NYSE:TREX - Free Report) by 97.6% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 68,812 shares of the construction company's stock after acquiring an additional 33,991 shares during the quarter. Hsbc Holdings PLC owned approximately 0.07% of Trex worth $2,428,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. V Square Quantitative Management LLC bought a new stake in shares of Trex in the fourth quarter worth about $27,000. Clearstead Trust LLC bought a new position in Trex during the 4th quarter valued at approximately $33,000. Eurizon Capital SGR S.p.A. bought a new position in Trex during the 4th quarter valued at approximately $47,000. Empowered Funds LLC purchased a new stake in Trex in the 4th quarter worth approximately $50,000. Finally, Covestor Ltd lifted its holdings in Trex by 1,365.4% in the 4th quarter. Covestor Ltd now owns 1,905 shares of the construction company's stock worth $67,000 after buying an additional 1,775 shares during the period. 95.96% of the stock is owned by institutional investors.

Trex Price Performance

NYSE:TREX opened at $47.14 on Friday. The firm has a market capitalization of $4.90 billion, a price-to-earnings ratio of 26.34, a price-to-earnings-growth ratio of 9.50 and a beta of 1.46. Trex Company, Inc. has a one year low of $29.77 and a one year high of $68.78. The business has a fifty day moving average price of $43.27 and a 200-day moving average price of $40.98.

Trex (NYSE:TREX - Get Free Report) last released its earnings results on Thursday, May 7th. The construction company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.08. The company had revenue of $343.40 million for the quarter, compared to the consensus estimate of $339.99 million. Trex had a return on equity of 19.66% and a net margin of 16.25%.Trex's quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.60 earnings per share. On average, equities research analysts expect that Trex Company, Inc. will post 1.68 earnings per share for the current fiscal year.

Insider Buying and Selling at Trex

In related news, SVP Jacob T. Rudolph sold 1,400 shares of the business's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $50.00, for a total transaction of $70,000.00. Following the completion of the transaction, the senior vice president directly owned 36,631 shares in the company, valued at approximately $1,831,550. The trade was a 3.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.93% of the stock is currently owned by insiders.

Analyst Ratings Changes

TREX has been the topic of several research analyst reports. Bank of America reduced their target price on Trex from $43.00 to $42.00 and set an "underperform" rating on the stock in a research note on Monday, April 20th. DA Davidson reiterated a "buy" rating and issued a $51.00 price target on shares of Trex in a report on Friday, June 5th. Weiss Ratings raised shares of Trex from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, May 11th. UBS Group reaffirmed a "buy" rating and issued a $59.00 target price (up from $58.00) on shares of Trex in a research report on Friday, May 8th. Finally, Wall Street Zen lowered shares of Trex from a "hold" rating to a "sell" rating in a research note on Saturday, June 6th. Ten equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Trex presently has a consensus rating of "Hold" and an average price target of $46.79.

Trex Company 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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