The Goldman Sachs Group Cuts Trex (NYSE:TREX) Price Target to $73.00

Key Points

• The Goldman Sachs Group has reduced Trex's price target from $83.00 to $73.00, while maintaining a "buy" rating on the stock.
• Trex's average rating is now a "Moderate Buy," with a consensus price target of $71.00, following various ratings updates from multiple analysts.
• During recent trading, Trex shares experienced an increase of $1.31, closing at $51.61 with a trading volume of 549,270 shares.

Trex (NYSE:TREX - Get Free Report) had its target price lowered by stock analysts at The Goldman Sachs Group from $83.00 to $73.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has a "buy" rating on the construction company's stock. The Goldman Sachs Group's target price would indicate a potential upside of 41.43% from the company's previous close.

A number of other equities analysts have also recently commented on the company. Wall Street Zen raised Trex from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. Baird R W upgraded shares of Trex from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 10th. Weiss Ratings reissued a "hold (c-)" rating on shares of Trex in a report on Wednesday, October 8th. Robert W. Baird raised shares of Trex from a "neutral" rating to an "outperform" rating and upped their price objective for the company from $65.00 to $75.00 in a research note on Thursday, July 10th. Finally, JPMorgan Chase & Co. reduced their price target on Trex from $73.00 to $71.00 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Trex presently has an average rating of "Moderate Buy" and a consensus price target of $71.00.

Trex Stock Performance

NYSE TREX traded up $1.31 during trading hours on Monday, hitting $51.61. The company had a trading volume of 549,270 shares, compared to its average volume of 1,623,739. The firm has a 50 day simple moving average of $58.55 and a 200 day simple moving average of $58.32. Trex has a 52 week low of $49.01 and a 52 week high of $80.74. The firm has a market capitalization of $5.53 billion, a price-to-earnings ratio of 29.76, a PEG ratio of 2.10 and a beta of 1.49.

Trex (NYSE:TREX - Get Free Report) last posted its earnings results on Monday, August 4th. The construction company reported $0.74 earnings per share for the quarter, topping analysts' consensus estimates of $0.72 by $0.02. Trex had a net margin of 16.53% and a return on equity of 21.27%. The business had revenue of $387.80 million for the quarter, compared to analyst estimates of $377.49 million. During the same quarter in the prior year, the firm posted $0.80 EPS. Trex's revenue was up 3.0% on a year-over-year basis. Trex has set its Q3 2025 guidance at EPS. On average, research analysts forecast that Trex will post 2.04 earnings per share for the current year.

Insider Buying and Selling at Trex

In other news, SVP Amy M. Fernandez sold 1,538 shares of the company's stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $64.18, for a total transaction of $98,708.84. Following the transaction, the senior vice president directly owned 22,953 shares of the company's stock, valued at $1,473,123.54. This represents a 6.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.74% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Armstrong Advisory Group Inc. bought a new stake in Trex during the second quarter valued at about $31,000. Parallel Advisors LLC lifted its position in shares of Trex by 28.4% in the second quarter. Parallel Advisors LLC now owns 1,049 shares of the construction company's stock valued at $57,000 after acquiring an additional 232 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in shares of Trex in the second quarter valued at about $60,000. Brooklyn Investment Group lifted its position in shares of Trex by 35,733.3% in the first quarter. Brooklyn Investment Group now owns 1,075 shares of the construction company's stock valued at $62,000 after acquiring an additional 1,072 shares in the last quarter. Finally, CWM LLC lifted its position in shares of Trex by 16.8% in the second quarter. CWM LLC now owns 1,141 shares of the construction company's stock worth $62,000 after buying an additional 164 shares in the last quarter. 95.96% of the stock is owned by hedge funds and other institutional investors.

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.

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