Trex Company, Inc. (NYSE:TREX) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Trex, with two sell, nine hold, ten buy and one strong-buy recommendations. The average 12-month price target is $49.15.
• Recent analyst targets range from $42 to $56, including upgrades from Zelman & Associates and higher price objectives from Stifel Nicolaus and BMO Capital Markets.
• Trex reported quarterly adjusted earnings of $0.59 per share, beating estimates of $0.51, while revenue reached $343.4 million. Institutional investors own approximately 95.96% of the company.

Shares of Trex Company, Inc. (NYSE:TREX - Get Free Report) have earned a consensus recommendation of "Hold" from the twenty-two research firms that are presently covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $49.15.

A number of research analysts have recently commented on TREX shares. Stifel Nicolaus lifted their price objective on shares of Trex from $44.00 to $47.00 and gave the company a "hold" rating in a research report on Tuesday, July 14th. Zelman & Associates raised shares of Trex from a "neutral" rating to an "outperform" rating and set a $50.00 target price on the stock in a report on Monday, May 18th. BMO Capital Markets reiterated an "outperform" rating and issued a $56.00 target price (up from $54.00) on shares of Trex in a research note on Tuesday, July 28th. DA Davidson reiterated a "buy" rating and issued a $55.00 target price on shares of Trex in a research note on Tuesday, July 14th. Finally, Barclays reiterated an "underweight" rating and set a $42.00 price target (up from $36.00) on shares of Trex in a report on Tuesday, July 14th.

Insider Activity

In other news, SVP Jacob T. Rudolph sold 1,400 shares of Trex stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $50.00, for a total transaction of $70,000.00. Following the completion of the transaction, the senior vice president directly owned 36,631 shares in the company, valued at approximately $1,831,550. The trade was a 3.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.93% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Trex

Several hedge funds have recently added to or reduced their stakes in TREX. AQR Capital Management LLC boosted its position in Trex by 3.2% during the first quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company's stock worth $320,000 after purchasing an additional 177 shares during the period. Benjamin Edwards Inc. raised its position in shares of Trex by 1.9% in the second quarter. Benjamin Edwards Inc. now owns 11,240 shares of the construction company's stock valued at $611,000 after purchasing an additional 214 shares during the period. Pinnacle Associates Ltd. lifted its stake in shares of Trex by 0.7% during the 4th quarter. Pinnacle Associates Ltd. now owns 40,285 shares of the construction company's stock worth $1,413,000 after buying an additional 285 shares during the last quarter. Hsbc Holdings PLC lifted its stake in shares of Trex by 6.3% during the 2nd quarter. Hsbc Holdings PLC now owns 5,403 shares of the construction company's stock worth $294,000 after buying an additional 322 shares during the last quarter. Finally, Nicolet Advisory Services LLC boosted its holdings in shares of Trex by 5.4% during the 3rd quarter. Nicolet Advisory Services LLC now owns 9,276 shares of the construction company's stock worth $488,000 after buying an additional 478 shares during the period. Institutional investors and hedge funds own 95.96% of the company's stock.

Trex Stock Up 0.2%

Shares of Trex stock opened at $43.45 on Monday. The stock has a market cap of $4.51 billion, a P/E ratio of 24.27, a P/E/G ratio of 4.98 and a beta of 1.48. Trex has a 12-month low of $29.77 and a 12-month high of $66.36. The business's 50 day moving average is $44.82 and its 200-day moving average is $41.76.

Trex (NYSE:TREX - Get Free Report) last released its earnings results on Thursday, May 7th. The construction company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.08. The business had revenue of $343.40 million during the quarter, compared to analysts' expectations of $339.99 million. Trex had a net margin of 16.25% and a return on equity of 19.66%. The firm's revenue was up 1.0% on a year-over-year basis. During the same period last year, the business earned $0.60 earnings per share. On average, sell-side analysts expect that Trex will post 1.78 EPS for the current year.

Trex Company Profile

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company's core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex's product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.

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