JPMorgan Chase & Co. Lowers Trex (NYSE:TREX) Price Target to $71.00

Key Points

• JPMorgan Chase & Co. has reduced its target price for Trex (NYSE:TREX) stock from $73.00 to $71.00, maintaining a "neutral" rating.
• Other firms have also lowered their target prices, with Citigroup setting an even lower target of $60.00 and Benchmark maintaining a "buy" rating with a target of $80.00.
• Despite recent downgrades, Trex reported earnings of $0.74 per share, surpassing analyst expectations, alongside a revenue increase of 3% from the previous year.

Trex (NYSE:TREX - Free Report) had its price objective decreased by JPMorgan Chase & Co. from $73.00 to $71.00 in a research note published on Wednesday morning,Benzinga reports. JPMorgan Chase & Co. currently has a neutral rating on the construction company's stock.

TREX has been the topic of several other research reports. Barclays decreased their price target on shares of Trex from $67.00 to $54.00 and set an "underweight" rating on the stock in a research report on Tuesday, April 8th. UBS Group restated a "neutral" rating and issued a $74.00 price target (up previously from $72.00) on shares of Trex in a research report on Tuesday, August 5th. Stephens decreased their price objective on shares of Trex from $73.00 to $65.00 and set an "equal weight" rating for the company in a research note on Monday, May 12th. Loop Capital reaffirmed a "hold" rating and issued a $66.00 price objective on shares of Trex in a research note on Tuesday, August 5th. Finally, DA Davidson set a $65.00 price objective on shares of Trex and gave the stock a "neutral" rating in a research note on Tuesday, August 5th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, six have assigned a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $71.93.

Trex Stock Down 2.7%

Trex stock traded down $1.66 during mid-day trading on Wednesday, hitting $59.80. The company's stock had a trading volume of 1,548,672 shares, compared to its average volume of 1,552,238. The stock has a market capitalization of $6.41 billion, a P/E ratio of 34.57, a P/E/G ratio of 2.50 and a beta of 1.51. Trex has a twelve month low of $49.01 and a twelve month high of $80.74. The stock's fifty day moving average price is $59.65 and its two-hundred day moving average price is $60.16.

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

Insiders Place Their Bets

In other Trex news, SVP Amy M. Fernandez sold 1,538 shares of Trex stock in a transaction on Wednesday, August 6th. The shares were 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 owned 22,953 shares of the company's stock, valued at $1,473,123.54. This trade represents a 6.28% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Jacob T. Rudolph sold 1,500 shares of Trex stock in a transaction 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 sale, the senior vice president directly owned 27,527 shares of the company's stock, valued at $1,659,052.29. This trade represents a 5.17% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 5,404 shares of company stock valued at $333,842 in the last three months. Company insiders own 0.74% of the company's stock.

Institutional Investors Weigh In On Trex

Several institutional investors and hedge funds have recently modified their holdings of TREX. O Shaughnessy Asset Management LLC lifted its stake in shares of Trex by 14.9% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 5,757 shares of the construction company's stock valued at $397,000 after purchasing an additional 747 shares during the last quarter. Wells Fargo & Company MN lifted its stake in shares of Trex by 1.8% in the 4th quarter. Wells Fargo & Company MN now owns 159,583 shares of the construction company's stock valued at $11,016,000 after purchasing an additional 2,799 shares during the last quarter. Resona Asset Management Co. Ltd. acquired a new stake in shares of Trex in the 4th quarter valued at $122,000. Envestnet Asset Management Inc. lifted its stake in shares of Trex by 8.5% in the 4th quarter. Envestnet Asset Management Inc. now owns 327,247 shares of the construction company's stock valued at $22,590,000 after purchasing an additional 25,540 shares during the last quarter. Finally, Russell Investments Group Ltd. lifted its stake in shares of Trex by 112.5% in the 4th quarter. Russell Investments Group Ltd. now owns 209,896 shares of the construction company's stock valued at $14,489,000 after purchasing an additional 111,116 shares during the last quarter. Institutional investors and hedge funds own 95.96% of the company's stock.

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.