Trex (NYSE:TREX) Share Price Breaks Above 200-Day Moving Average - Time to Sell?

Trex Company, Inc. (NYSE:TREX - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $43.47 and traded as high as $45.54. Trex shares last traded at $45.0320, with a volume of 1,008,262 shares trading hands.

Analysts Set New Price Targets

TREX has been the subject of several recent research reports. Barclays reissued an "underweight" rating and set a $42.00 price target (up from $36.00) on shares of Trex in a research report on Tuesday, July 14th. Bank of America upped their price objective on Trex from $42.00 to $44.00 and gave the company an "underperform" rating in a research report on Tuesday, July 14th. UBS Group restated a "buy" rating and issued a $61.00 price objective (up from $59.00) on shares of Trex in a research report on Tuesday, July 14th. BMO Capital Markets set a $57.00 price objective on Trex in a research note on Wednesday, August 5th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $56.00 price objective (up from $49.00) on shares of Trex in a research note on Friday, July 10th. Twelve investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $50.19.

Trex Price Performance

The stock has a market capitalization of $4.68 billion, a price-to-earnings ratio of 26.80, a PEG ratio of 2.59 and a beta of 1.48. The business's 50-day simple moving average is $45.60 and its two-hundred day simple moving average is $43.47.

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 (EPS) for the quarter, missing the consensus estimate of $0.63 by ($0.01). Trex had a return on equity of 18.03% and a net margin of 14.68%. The business had revenue of $418.02 million for the quarter, compared to analysts' expectations of $415.71 million. During the same quarter in the prior year, the firm earned $0.71 earnings per share. Trex's quarterly revenue was up 7.8% compared to the same quarter last year. As a group, sell-side analysts expect that Trex Company, Inc. will post 1.76 EPS for the current year.

Insider Transactions at Trex

In related news, SVP Amy M. Fernandez sold 1,050 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $50.07, for a total value of $52,573.50. Following the completion of the sale, the senior vice president directly owned 67,794 shares in the company, valued at approximately $3,394,445.58. This represents a 1.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.93% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of TREX. BlackRock Inc. purchased a new stake in shares of Trex during the second quarter valued at approximately $525,081,000. Wellington Management Group LLP lifted its position in shares of Trex by 18.2% during the second quarter. Wellington Management Group LLP now owns 9,877,116 shares of the construction company's stock worth $494,251,000 after purchasing an additional 1,518,338 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Trex during the second quarter worth $94,851,000. Freestone Grove Partners LP acquired a new position in shares of Trex during the second quarter worth $36,197,000. Finally, Bank of New York Mellon Corp lifted its position in shares of Trex by 0.8% during the first quarter. Bank of New York Mellon Corp now owns 649,458 shares of the construction company's stock worth $23,653,000 after purchasing an additional 5,246 shares in the last quarter. Institutional investors and hedge funds own 95.96% of the company's stock.

About Trex

Trex Company, Inc designs, manufactures and distributes composite decking, railing and related outdoor-living products. Its portfolio includes residential and commercial decking systems, railing, outdoor lighting, furniture, and other accessories sold under the Trex brand. The company's products are positioned as alternatives to traditional wood and are designed to provide durability and lower maintenance.

Trex composite products are made primarily from reclaimed wood fibers and recycled polyethylene film, including materials such as used plastic bags and packaging.

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