Sandler Capital Management Reduces Position in Trex Company, Inc. $TREX

Key Points

• Sandler Capital Management reduced its stake in Trex Company, Inc. by 49.9% in the first quarter, holding 44,911 shares valued at approximately $2.61 million after selling 44,818 shares.
• Institutional interest remains high, with 95.96% of Trex's stock owned by hedge funds and other institutional investors, while several firms adjusted their ratings and target prices for Trex shares in recent months.
• Trex reported $0.74 earnings per share for the last quarter, exceeding estimates, and generated $387.80 million in revenue, a 3.0% increase year-over-year.

Sandler Capital Management decreased its holdings in shares of Trex Company, Inc. (NYSE:TREX - Free Report) by 49.9% during the first quarter, according to its most recent filing with the SEC. The firm owned 44,911 shares of the construction company's stock after selling 44,818 shares during the period. Sandler Capital Management's holdings in Trex were worth $2,609,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Price T Rowe Associates Inc. MD grew its stake in Trex by 132.8% in the first quarter. Price T Rowe Associates Inc. MD now owns 7,297,863 shares of the construction company's stock valued at $424,007,000 after purchasing an additional 4,163,014 shares during the last quarter. Conestoga Capital Advisors LLC grew its stake in Trex by 1.8% during the 1st quarter. Conestoga Capital Advisors LLC now owns 2,002,468 shares of the construction company's stock worth $116,343,000 after buying an additional 34,720 shares during the last quarter. American Century Companies Inc. raised its stake in Trex by 66.1% in the first quarter. American Century Companies Inc. now owns 1,972,125 shares of the construction company's stock valued at $114,580,000 after buying an additional 784,820 shares during the last quarter. Point72 Asset Management L.P. increased its holdings in shares of Trex by 87.4% during the fourth quarter. Point72 Asset Management L.P. now owns 1,916,134 shares of the construction company's stock valued at $132,271,000 after acquiring an additional 893,675 shares in the last quarter. Finally, Madison Asset Management LLC acquired a new stake in Trex in the 1st quarter worth approximately $109,852,000. 95.96% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Trex

In other Trex news, 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 completion of the sale, the senior vice president directly owned 22,953 shares in the company, valued at approximately $1,473,123.54. The trade was a 6.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.71% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms have recently commented on TREX. UBS Group reiterated a "neutral" rating and set a $74.00 price objective (up from $72.00) on shares of Trex in a research note on Tuesday, August 5th. JPMorgan Chase & Co. dropped their price target on Trex from $73.00 to $71.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 6th. Loop Capital restated a "hold" rating and issued a $66.00 price objective on shares of Trex in a research note on Tuesday, August 5th. Robert W. Baird upgraded Trex from a "neutral" rating to an "outperform" rating and upped their target price for the company from $65.00 to $75.00 in a research report on Thursday, July 10th. Finally, B. Riley raised shares of Trex to a "strong-buy" rating in a report on Monday, July 21st. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $71.93.

Trex Stock Performance

Shares of Trex stock traded up $2.27 on Thursday, hitting $62.27. The company's stock had a trading volume of 1,218,207 shares, compared to its average volume of 1,604,828. Trex Company, Inc. has a 1 year low of $49.01 and a 1 year high of $80.74. The firm has a fifty day moving average price of $62.80 and a 200-day moving average price of $59.11. The company has a market capitalization of $6.68 billion, a price-to-earnings ratio of 36.00, a price-to-earnings-growth ratio of 2.51 and a beta of 1.51.

Trex (NYSE:TREX - Get Free Report) last announced its earnings results on Monday, August 4th. The construction company reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.72 by $0.02. Trex had a return on equity of 21.27% and a net margin of 16.53%.The business had revenue of $387.80 million during the quarter, compared to the consensus estimate of $377.49 million. During the same period in the prior year, the company posted $0.80 EPS. The business's quarterly revenue was up 3.0% on a year-over-year basis. Trex has set its Q3 2025 guidance at EPS. As a group, analysts forecast that Trex Company, Inc. will post 2.04 EPS for the current year.

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.