Neo Ivy Capital Management Invests $1.69 Million in Trex Company, Inc. (NYSE:TREX)

Key Points

• Neo Ivy Capital Management has acquired 29,064 shares of Trex Company, Inc., valued at approximately $1.69 million, signaling growing institutional interest in the company.
• Several hedge funds have increased their holdings in Trex, with Alliancebernstein L.P. and Price T Rowe Associates Inc. MD reporting significant acquisitions, indicating a robust investment trend.
• Trex recently reported earnings of $0.60 per share, exceeding analysts' expectations, although revenue decreased by 9.0% compared to the previous year.

Neo Ivy Capital Management purchased a new stake in Trex Company, Inc. (NYSE:TREX - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 29,064 shares of the construction company's stock, valued at approximately $1,689,000.

A number of other large investors also recently made changes to their positions in the stock. GAMMA Investing LLC increased its position 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 valued at $97,000 after acquiring an additional 965 shares during the last quarter. Teacher Retirement System of Texas bought a new stake in shares of Trex during the first quarter worth approximately $911,000. State of Alaska Department of Revenue boosted its holdings in shares of Trex by 2.7% during the first quarter. State of Alaska Department of Revenue now owns 12,546 shares of the construction company's stock worth $728,000 after acquiring an additional 330 shares during the period. Pictet Asset Management Holding SA boosted its holdings in shares of Trex by 7.1% during the fourth quarter. Pictet Asset Management Holding SA now owns 14,538 shares of the construction company's stock worth $1,004,000 after acquiring an additional 969 shares during the period. Finally, Janney Montgomery Scott LLC raised its position in shares of Trex by 26.0% in the first quarter. Janney Montgomery Scott LLC now owns 70,990 shares of the construction company's stock valued at $4,125,000 after buying an additional 14,670 shares in the last quarter. Institutional investors and hedge funds own 95.96% of the company's stock.

Insider Activity at Trex

In related news, SVP Amy M. Fernandez sold 2,366 shares of Trex stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $61.17, for a total value of $144,728.22. Following the completion of the transaction, the senior vice president directly owned 24,569 shares in the company, valued at approximately $1,502,885.73. The trade was a 8.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Jacob T. Rudolph sold 1,500 shares of Trex stock in a transaction that occurred on Thursday, May 15th. The shares were sold at an average price of $60.27, for a total transaction of $90,405.00. Following the completion of the transaction, the senior vice president owned 27,527 shares of the company's stock, valued at $1,659,052.29. This represents a 5.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.74% of the company's stock.

Trex Stock Performance

TREX traded down $0.45 during mid-day trading on Tuesday, reaching $67.04. 287,895 shares of the stock were exchanged, compared to its average volume of 1,591,982. The stock has a market capitalization of $7.19 billion, a PE ratio of 36.83, a price-to-earnings-growth ratio of 2.88 and a beta of 1.50. The company has a 50 day moving average price of $58.47 and a two-hundred day moving average price of $60.63. Trex Company, Inc. has a 1 year low of $49.01 and a 1 year high of $86.56.

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

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. BMO Capital Markets upgraded shares of Trex from a "market perform" rating to an "outperform" rating and set a $72.00 price target for the company in a research report on Thursday, April 17th. Stephens lowered their price target on shares of Trex from $73.00 to $65.00 and set an "equal weight" rating for the company in a report on Monday, May 12th. Barclays reduced their price objective on shares of Trex from $67.00 to $54.00 and set an "underweight" rating on the stock in a research note on Tuesday, April 8th. Citigroup reduced their price objective on shares of Trex from $78.00 to $60.00 and set a "neutral" rating on the stock in a research note on Friday, April 11th. Finally, UBS Group reduced their price objective on shares of Trex from $74.00 to $72.00 and set a "neutral" rating on the stock in a research note on Friday, May 9th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating, seven have assigned a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $74.88.

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.