Trex (NYSE:TREX) Sets New 1-Year High - What's Next?

Key Points

• Trex shares reached a new 52-week high of $51.10, up from a previous close of $48.83, giving the company a market capitalization of approximately $5.31 billion.
• Analyst sentiment is mixed: 13 analysts rate the stock a Buy, eight rate it Hold, and two rate it Sell. The consensus rating is Hold, with an average price target of $50.48, although several firms recently raised their targets.
• Trex’s latest quarterly revenue rose 7.8% year over year to $418.02 million and exceeded estimates, but earnings per share of $0.62 narrowly missed expectations. An insider also sold 1,050 shares, while institutional investors own nearly 96% of the stock.

Trex Company, Inc. (NYSE:TREX - Get Free Report) reached a new 52-week high during mid-day trading on Thursday. The company traded as high as $51.10 and last traded at $51.0770, with a volume of 2,218,764 shares traded. The stock had previously closed at $48.83.

Wall Street Analysts Forecast Growth

Several analysts have commented on TREX shares. Truist Financial boosted their target price on shares of Trex from $55.00 to $60.00 and gave the stock a "buy" 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 report on Sunday, July 12th. Stephens increased their price target on Trex from $45.00 to $50.00 and gave the company an "equal weight" rating in a report on Tuesday, July 28th. BMO Capital Markets set a $57.00 price target on shares of Trex in a research report on Wednesday, August 5th. Finally, DA Davidson restated a "buy" rating and issued a $55.00 price objective on shares of Trex in a research note on Tuesday, July 14th. Thirteen equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $50.48.

Trex Stock Performance

The company has a market cap of $5.31 billion, a price-to-earnings ratio of 30.40, a PEG ratio of 2.83 and a beta of 1.48. The business's 50 day moving average price is $45.31 and its 200-day moving average price is $43.92.

Trex (NYSE:TREX - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The construction company reported $0.62 earnings per share for the quarter, missing analysts' consensus estimates of $0.63 by ($0.01). Trex had a net margin of 14.68% and a return on equity of 18.03%. The company had revenue of $418.02 million for the quarter, compared to analyst estimates of $415.71 million. During the same period in the previous year, the firm posted $0.71 earnings per share. The firm's revenue for the quarter was up 7.8% compared to the same quarter last year. On average, equities research analysts expect that Trex Company, Inc. will post 1.77 earnings per share for the current fiscal year.

Insider Activity at Trex

In other news, SVP Amy M. Fernandez sold 1,050 shares of Trex stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $50.07, for a total transaction of $52,573.50. Following the completion of the sale, the senior vice president owned 67,794 shares in the company, valued at $3,394,445.58. The trade was a 1.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.93% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Trex

Several large investors have recently bought and sold shares of the company. Root Financial Partners LLC acquired a new stake in shares of Trex in the 3rd quarter valued at about $213,000. Reyes Financial Architecture Inc. bought a new position in shares of Trex in the third quarter valued at $88,000. Nisa Investment Advisors LLC increased its stake in shares of Trex by 68.0% during the 3rd quarter. Nisa Investment Advisors LLC now owns 5,595 shares of the construction company's stock worth $244,000 after purchasing an additional 2,265 shares during the last quarter. Counterpoint Mutual Funds LLC acquired a new position in Trex during the third quarter worth approximately $623,000. Finally, Curated Wealth Partners LLC raised its position in shares of Trex by 29.2% in the third quarter. Curated Wealth Partners LLC now owns 4,611 shares of the construction company's stock valued at $201,000 after purchasing an additional 1,042 shares during the period. Institutional investors own 95.96% of the company's stock.

About Trex

Trex Company, Inc is a manufacturer of composite decking and outdoor living products. Its offerings are designed as alternatives to traditional wood and include residential and commercial decking, railing systems, outdoor lighting, and related accessories.

The company's products are marketed under the Trex brand and include decking lines such as Trex Transcend, Trex Select, and Trex Enhance. Trex composite products are made primarily from recycled wood fibers and recycled polyethylene plastics, supporting the company's focus on low-maintenance and environmentally oriented outdoor building materials.

Founded in 1996 and headquartered in Winchester, Virginia, Trex serves customers through a network of distributors, dealers, retailers, contractors, and building professionals.

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