Trex Company, Inc. $TREX Shares Purchased by Gabelli Funds LLC

Key Points

• Gabelli Funds increased its Trex position by 73.6% in the first quarter, purchasing 36,805 additional shares to own 86,805 shares valued at approximately $3.16 million. Institutional investors collectively own 95.96% of the company.
• Trex senior vice president Jacob T. Rudolph sold 1,400 shares for $70,000 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 3.68%; insiders own 0.93% of the stock.
• Analysts maintain a broadly cautious outlook, with Trex carrying an average “Hold” rating and a $49.15 price target. The company recently beat quarterly EPS estimates, reporting $0.59 versus the $0.51 consensus, while revenue rose 1% year over year to $343.4 million.

Gabelli Funds LLC boosted its position in shares of Trex Company, Inc. (NYSE:TREX - Free Report) by 73.6% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 86,805 shares of the construction company's stock after purchasing an additional 36,805 shares during the quarter. Gabelli Funds LLC owned approximately 0.08% of Trex worth $3,161,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Wellington Management Group LLP boosted its position in shares of Trex by 266.0% in the 4th quarter. Wellington Management Group LLP now owns 7,225,393 shares of the construction company's stock worth $253,467,000 after buying an additional 5,251,297 shares in the last quarter. AQR Capital Management LLC increased its holdings in Trex by 143.8% during the 4th quarter. AQR Capital Management LLC now owns 3,895,534 shares of the construction company's stock valued at $136,655,000 after acquiring an additional 2,297,533 shares in the last quarter. Norges Bank purchased a new position in Trex during the 4th quarter valued at about $62,904,000. Freestone Grove Partners LP acquired a new position in Trex during the fourth quarter worth about $53,951,000. Finally, Jacobs Levy Equity Management Inc. lifted its holdings in shares of Trex by 120.6% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,326,379 shares of the construction company's stock valued at $46,529,000 after purchasing an additional 725,090 shares in the last quarter. Hedge funds and other institutional investors own 95.96% of the company's stock.

Insiders Place Their Bets

In other Trex news, SVP Jacob T. Rudolph sold 1,400 shares of the stock in a transaction 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 transaction, the senior vice president owned 36,631 shares of the company's stock, valued at $1,831,550. This represents a 3.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.93% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently commented on TREX. Stifel Nicolaus increased their price target on shares of Trex from $44.00 to $47.00 and gave the company a "hold" rating in a research report on Tuesday, July 14th. Wall Street Zen raised Trex from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $51.00 target price (up from $41.00) on shares of Trex in a report on Tuesday, July 14th. Citigroup reissued a "neutral" rating and set a $52.00 price target (up from $43.00) on shares of Trex in a research report on Wednesday, July 15th. Finally, Zelman & Associates raised Trex from a "neutral" rating to an "outperform" rating and set a $50.00 price target for the company in a report on Monday, May 18th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $49.15.

Trex Price Performance

Shares of NYSE TREX opened at $44.00 on Wednesday. The company has a 50-day simple moving average of $44.55 and a 200-day simple moving average of $41.70. The company has a market cap of $4.57 billion, a PE ratio of 24.58, a price-to-earnings-growth ratio of 5.05 and a beta of 1.46. Trex Company, Inc. has a 12 month low of $29.77 and a 12 month high of $68.24.

Trex (NYSE:TREX - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The construction company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.08. Trex had a net margin of 16.25% and a return on equity of 19.66%. The business had revenue of $343.40 million for the quarter, compared to the consensus estimate of $339.99 million. During the same quarter in the prior year, the firm posted $0.60 earnings per share. The company's quarterly revenue was up 1.0% compared to the same quarter last year. On average, analysts anticipate that Trex Company, Inc. will post 1.78 EPS for the current year.

Trex 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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