JPMorgan Chase & Co. Issues Pessimistic Forecast for Trex (NYSE:TREX) Stock Price

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 - Get Free Report) had its target price decreased by JPMorgan Chase & Co. from $73.00 to $71.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the construction company's stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 16.16% from the company's previous close.

Several other research firms also recently commented on TREX. Citigroup decreased their target price on shares of Trex from $78.00 to $60.00 and set a "neutral" rating for the company in a research report on Friday, April 11th. Benchmark restated a "buy" rating and set a $80.00 price objective on shares of Trex in a research note on Monday, May 12th. UBS Group reiterated a "neutral" rating and issued a $74.00 target price (up previously from $72.00) on shares of Trex in a research note on Tuesday. Robert W. Baird upgraded shares of Trex from a "neutral" rating to an "outperform" rating and upped their target price for the stock from $65.00 to $75.00 in a research note on Thursday, July 10th. Finally, Baird R W upgraded shares of Trex from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 10th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, seven have issued a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $74.31.

Trex Stock Performance

Shares of NYSE:TREX traded down $4.64 during midday trading on Wednesday, hitting $61.12. 2,502,368 shares of the stock were exchanged, compared to its average volume of 1,610,584. The stock has a market capitalization of $6.55 billion, a price-to-earnings ratio of 35.33, a P/E/G ratio of 2.71 and a beta of 1.51. The business's 50-day moving average price is $59.37 and its 200 day moving average price is $60.50. Trex has a 12 month low of $49.01 and a 12 month high of $80.74.

Trex (NYSE:TREX - Get Free Report) last released 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. Trex had a net margin of 16.53% and a return on equity of 21.92%. The firm had revenue of $387.80 million during the quarter, compared to analyst estimates of $377.49 million. During the same quarter last year, the business earned $0.80 EPS. The company's revenue was up 3.0% compared to the same quarter last year. As a group, sell-side analysts expect that Trex will post 2.04 EPS for the current year.

Insider Buying and Selling

In related news, SVP Jacob T. Rudolph sold 1,500 shares of the company's stock in a transaction on Thursday, May 15th. The stock was sold at an average price of $60.27, for a total value 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 represents a 5.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Amy M. Fernandez sold 2,366 shares of the company's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $61.17, for a total transaction of $144,728.22. Following the completion of the sale, the senior vice president directly owned 24,569 shares in the company, valued at $1,502,885.73. This represents a 8.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.74% of the company's stock.

Institutional Trading of Trex

A number of hedge funds have recently made changes to their positions in TREX. Price T Rowe Associates Inc. MD boosted its holdings 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 worth $424,007,000 after purchasing an additional 4,163,014 shares during the last quarter. Wasatch Advisors LP boosted its stake in shares of Trex by 12.8% in the 4th quarter. Wasatch Advisors LP now owns 4,599,521 shares of the construction company's stock worth $317,505,000 after buying an additional 523,113 shares during the last quarter. Bamco Inc. NY boosted its stake in shares of Trex by 6.2% in the 4th quarter. Bamco Inc. NY now owns 2,153,133 shares of the construction company's stock worth $148,631,000 after buying an additional 126,441 shares during the last quarter. Balyasny Asset Management L.P. boosted its stake in shares of Trex by 86.3% in the 4th quarter. Balyasny Asset Management L.P. now owns 2,029,034 shares of the construction company's stock worth $140,064,000 after buying an additional 939,960 shares during the last quarter. Finally, Conestoga Capital Advisors LLC boosted its stake in shares of Trex by 1.8% in 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. 95.96% of the stock is owned by institutional investors.

Trex Company 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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