Polen Capital Management LLC Raises Position in Trex Company, Inc. (NYSE:TREX)

Key Points

• Polen Capital Management LLC increased its stake in Trex Company by 39.9%, holding 78,742 shares worth $4.57 million as of its recent SEC filing.
• Trex Company reported a quarterly earnings per share (EPS) of $0.74, exceeding expectations, along with a net margin of 16.53% and revenue growth of 3.0% year-over-year.
• Analyst ratings for Trex are mixed, with a consensus rating of "Moderate Buy" and an average price target of $71.93, reflecting ongoing interest from financial analysts.

Polen Capital Management LLC raised its holdings in Trex Company, Inc. (NYSE:TREX - Free Report) by 39.9% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 78,742 shares of the construction company's stock after buying an additional 22,474 shares during the period. Polen Capital Management LLC owned approximately 0.07% of Trex worth $4,575,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Invesco Ltd. raised its stake in Trex by 2.7% during the 1st quarter. Invesco Ltd. now owns 1,154,134 shares of the construction company's stock worth $67,055,000 after acquiring an additional 30,861 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Trex by 5.7% during the first quarter. Charles Schwab Investment Management Inc. now owns 979,820 shares of the construction company's stock worth $56,928,000 after buying an additional 53,196 shares in the last quarter. Empower Advisory Group LLC boosted its holdings in Trex by 5.4% during the first quarter. Empower Advisory Group LLC now owns 120,026 shares of the construction company's stock worth $6,974,000 after buying an additional 6,188 shares in the last quarter. Geneva Capital Management LLC boosted its holdings in Trex by 0.5% during the first quarter. Geneva Capital Management LLC now owns 1,600,884 shares of the construction company's stock worth $93,011,000 after buying an additional 8,688 shares in the last quarter. Finally, IQ EQ FUND MANAGEMENT IRELAND Ltd boosted its holdings in Trex by 8.8% during the first quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 14,630 shares of the construction company's stock worth $850,000 after buying an additional 1,189 shares in the last quarter. 95.96% of the stock is currently owned by institutional investors and hedge funds.

Trex Price Performance

NYSE:TREX opened at $59.80 on Friday. The firm has a 50 day simple moving average of $59.65 and a 200-day simple moving average of $60.26. The firm has a market cap of $6.41 billion, a PE ratio of 34.57, a P/E/G ratio of 2.49 and a beta of 1.51. Trex Company, Inc. has a 1-year low of $49.01 and a 1-year high of $80.74.

Trex (NYSE:TREX - Get Free Report) last issued its quarterly earnings results on Monday, August 4th. The construction company reported $0.74 EPS for the quarter, topping the consensus estimate of $0.72 by $0.02. Trex had a net margin of 16.53% and a return on equity of 21.27%. The firm had revenue of $387.80 million during the quarter, compared to analyst estimates of $377.49 million. During the same quarter in the prior year, the business posted $0.80 earnings per share. Trex's revenue for the quarter was up 3.0% compared to the same quarter last year. As a group, sell-side analysts expect that Trex Company, Inc. will post 2.04 earnings per share for the current fiscal year.

Insider Activity at Trex

In other Trex news, SVP Jacob T. Rudolph sold 1,500 shares of the business's 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 sale, the senior vice president directly owned 27,527 shares in the company, valued at $1,659,052.29. The trade was a 5.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Amy M. Fernandez sold 1,538 shares of the business's stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $64.18, for a total transaction of $98,708.84. Following the sale, the senior vice president owned 22,953 shares of the company's stock, valued at approximately $1,473,123.54. This represents a 6.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 5,404 shares of company stock valued at $333,842. 0.71% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. BMO Capital Markets raised shares of Trex from a "market perform" rating to an "outperform" rating and set a $72.00 price objective on the stock in a report on Thursday, April 17th. JPMorgan Chase & Co. cut their target price on shares of Trex from $73.00 to $71.00 and set a "neutral" rating for the company in a research report on Wednesday. Wall Street Zen upgraded shares of Trex from a "sell" rating to a "hold" rating in a research report on Saturday. B. Riley upgraded shares of Trex to a "strong-buy" rating in a research report on Monday, July 21st. Finally, Robert W. Baird upgraded shares of Trex from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $65.00 to $75.00 in a research report on Thursday, July 10th. One analyst has rated the stock with a sell rating, eight have given a hold rating, six have given a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $71.93.

Trex Profile

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.

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