Hsbc Holdings PLC Reduces Stock Holdings in Trex Company, Inc. $TREX

Key Points

• HSBC cut its Trex stake by 44.9% in the second quarter, selling 69,825 shares and retaining 85,641 shares worth approximately $4.27 million. Institutional investors collectively own 95.96% of Trex.
• Trex shares were trading at $43.67, down 4.0%, with a market capitalization of about $4.54 billion. The company’s latest quarterly revenue rose 7.8% year over year to $418.02 million, but earnings of $0.62 per share narrowly missed analysts’ expectations.
• Analyst sentiment is mixed, with the stock holding an overall “Hold” rating and an average price target of $49.30; targets from major firms range from $49 to $55.

Hsbc Holdings PLC lowered its stake in shares of Trex Company, Inc. (NYSE:TREX - Free Report) by 44.9% during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 85,641 shares of the construction company's stock after selling 69,825 shares during the quarter. Hsbc Holdings PLC owned 0.08% of Trex worth $4,271,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of the stock. California State Teachers Retirement System lifted its holdings in Trex by 26.6% during the 1st quarter. California State Teachers Retirement System now owns 129,321 shares of the construction company's stock valued at $4,710,000 after buying an additional 27,189 shares in the last quarter. BlackRock Inc. bought a new stake in shares of Trex during the second quarter valued at approximately $525,081,000. Havemeyer Place LP purchased a new stake in shares of Trex in the fourth quarter valued at approximately $1,417,000. Wesbanco Bank Inc. bought a new position in Trex in the first quarter worth approximately $932,000. Finally, EFG International AG purchased a new position in Trex during the 2nd quarter worth $7,197,000. Hedge funds and other institutional investors own 95.96% of the company's stock.

Trex Trading Down 4.0%

Shares of TREX stock opened at $43.67 on Friday. Trex Company, Inc. has a 12-month low of $29.77 and a 12-month high of $62.45. The business's fifty day simple moving average is $46.03 and its 200-day simple moving average is $42.61. The company has a market cap of $4.54 billion, a PE ratio of 26.00, a PEG ratio of 3.14 and a beta of 1.47.

Trex (NYSE:TREX - Get Free Report) last announced its earnings results on Tuesday, August 4th. The construction company reported $0.62 earnings per share for the quarter, missing the consensus estimate of $0.63 by ($0.01). Trex had a return on equity of 18.03% and a net margin of 14.68%.The business had revenue of $418.02 million for the quarter, compared to analysts' expectations of $415.71 million. During the same quarter last year, the firm earned $0.71 earnings per share. The firm's quarterly revenue was up 7.8% compared to the same quarter last year. On average, equities analysts forecast that Trex Company, Inc. will post 1.76 earnings per share for the current year.

Insider Transactions at Trex

In other news, SVP Amy M. Fernandez sold 1,050 shares of the business'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 sale, the senior vice president owned 67,794 shares in the company, valued at approximately $3,394,445.58. The trade was a 1.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Jacob Rudolph sold 1,400 shares of the company's 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 transaction, the senior vice president owned 36,631 shares in the company, valued at approximately $1,831,550. This trade represents a 3.68% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.93% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on TREX. Stifel Nicolaus set a $49.00 price target on Trex and gave the company a "hold" rating in a research note on Tuesday, August 11th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $51.00 price target (up from $41.00) on shares of Trex in a report on Tuesday, July 14th. Weiss Ratings upgraded shares of Trex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, September 1st. Citigroup reissued a "neutral" rating and issued a $52.00 price objective (up from $43.00) on shares of Trex in a research note on Wednesday, July 15th. Finally, DA Davidson reaffirmed a "buy" rating and set a $55.00 target price on shares of Trex in a research report on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $49.30.

About Trex

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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