Trex (NYSE:TREX) Stock Price Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Trex shares rose above their 200-day moving average, trading as high as $45.13 versus the $42.97 average, before closing at $44.07.
• Analyst sentiment is mixed but leans neutral: 10 analysts rate Trex a Buy, 10 a Hold and two a Sell, producing a consensus Hold rating and an average price target of $49.30.
• Trex slightly missed quarterly earnings estimates with EPS of $0.62 versus $0.63 expected, while revenue of $418.02 million exceeded forecasts and increased 7.8% year over year.

Trex Company, Inc. (NYSE:TREX - Get Free Report) passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $42.97 and traded as high as $45.13. Trex shares last traded at $44.07, with a volume of 1,555,708 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Stifel Nicolaus set a $49.00 target price on shares of Trex and gave the stock a "hold" rating in a research report on Tuesday, August 11th. UBS Group reiterated a "buy" rating and issued a $61.00 price target (up from $59.00) on shares of Trex in a research report on Tuesday, July 14th. Truist Financial boosted their price target on Trex from $55.00 to $60.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Stephens increased their price target on Trex from $45.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 28th. Finally, Wall Street Zen raised Trex from a "sell" rating to a "hold" rating in a research report on Sunday, July 12th. Ten equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $49.30.

Trex Price Performance

The firm has a market cap of $4.58 billion, a P/E ratio of 26.23, a PEG ratio of 3.06 and a beta of 1.47. The company's 50-day moving average is $45.52 and its two-hundred day moving average is $42.97.

Trex (NYSE:TREX - Get Free Report) last released its earnings results on Tuesday, August 4th. The construction company reported $0.62 EPS for the quarter, missing the consensus estimate of $0.63 by ($0.01). The firm had revenue of $418.02 million during the quarter, compared to the consensus estimate of $415.71 million. Trex had a net margin of 14.68% and a return on equity of 18.03%. Trex's quarterly revenue was up 7.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.71 earnings per share. On average, analysts expect that Trex Company, Inc. will post 1.76 EPS for the current fiscal year.

Insider Activity

In related 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 value of $52,573.50. Following the transaction, the senior vice president directly owned 67,794 shares of the company's stock, valued at $3,394,445.58. This trade represents a 1.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.93% of the company's stock.

Institutional Investors Weigh In On Trex

Several institutional investors and hedge funds have recently added to or reduced their stakes in TREX. Versant Capital Management Inc bought a new position in shares of Trex in the 2nd quarter valued at $58,000. Ascentis Independent Advisors acquired a new position in shares of Trex during the 1st quarter worth $44,000. Eurizon Capital SGR S.p.A. bought a new stake in shares of Trex during the 4th quarter worth $47,000. IFP Advisors Inc lifted its position in shares of Trex by 76.0% during the 2nd quarter. IFP Advisors Inc now owns 1,584 shares of the construction company's stock worth $79,000 after buying an additional 684 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. acquired a new stake in Trex in the second quarter valued at about $89,000. 95.96% of the stock is currently owned by institutional investors.

About Trex

Trex Company, Inc designs, manufactures and markets wood-alternative composite decking and outdoor living products. Its product portfolio includes decking boards, railing systems, outdoor lighting, deck drainage and related accessories sold under the Trex brand. The company's composite products are made primarily from recycled materials and are positioned as lower-maintenance alternatives to traditional wood decking.

Trex serves residential and commercial customers through a network of dealers, distributors, retailers, contractors and building professionals.

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