Trex Company, Inc. (NYSE:TREX) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analysts have a consensus recommendation of "Hold" on Trex from 23 firms (3 sell, 10 hold, 10 buy), with an average 12‑month price target of $47.73.
• Trex reported Q4 EPS of $0.04, beating the consensus of ($0.01), and revenue of $161.13M versus $144.39M expected, although revenue was down 3.9% year‑over‑year.
• Shares opened at $38.87 (market cap ~$4.11B) and are trading below the 12‑month high of $68.78; institutional investors own roughly 95.96% of the company.

Trex Company, Inc. (NYSE:TREX - Get Free Report) has earned a consensus recommendation of "Hold" from the twenty-three research firms that are covering the firm, MarketBeat.com reports. Three analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation and ten have assigned a buy recommendation to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $47.7250.

A number of equities analysts have commented on the company. DA Davidson upgraded Trex from a "neutral" rating to a "buy" rating and lifted their target price for the company from $45.00 to $50.00 in a research note on Monday, January 12th. UBS Group raised their price target on Trex from $52.00 to $58.00 and gave the stock a "buy" rating in a report on Wednesday, February 25th. BMO Capital Markets restated an "outperform" rating and set a $54.00 price objective on shares of Trex in a research note on Thursday, January 8th. Robert W. Baird set a $48.00 target price on Trex in a research report on Monday, January 12th. Finally, Loop Capital upgraded Trex from a "hold" rating to a "buy" rating and raised their target price for the company from $45.00 to $53.00 in a research note on Wednesday, February 25th.

Institutional Investors Weigh In On Trex

Hedge funds have recently made changes to their positions in the business. WCM Investment Management LLC raised its holdings in Trex by 734.5% during the 3rd quarter. WCM Investment Management LLC now owns 39,566 shares of the construction company's stock worth $2,033,000 after buying an additional 34,825 shares during the period. Lisanti Capital Growth LLC purchased a new position in shares of Trex in the third quarter worth approximately $3,614,000. Thrivent Financial for Lutherans raised its holdings in shares of Trex by 7.9% during the third quarter. Thrivent Financial for Lutherans now owns 906,892 shares of the construction company's stock valued at $46,859,000 after acquiring an additional 66,721 shares during the period. Campbell & CO Investment Adviser LLC acquired a new stake in shares of Trex during the second quarter valued at approximately $3,015,000. Finally, Advantage Alpha Capital Partners LP lifted its position in shares of Trex by 169.2% in the 2nd quarter. Advantage Alpha Capital Partners LP now owns 75,013 shares of the construction company's stock valued at $4,079,000 after acquiring an additional 47,143 shares in the last quarter. Institutional investors own 95.96% of the company's stock.

Trex Trading Down 3.3%

Shares of NYSE TREX opened at $38.87 on Friday. The company has a market capitalization of $4.11 billion, a price-to-earnings ratio of 21.96, a price-to-earnings-growth ratio of 9.24 and a beta of 1.58. Trex has a twelve month low of $29.77 and a twelve month high of $68.78. The business has a 50 day simple moving average of $41.04 and a 200-day simple moving average of $44.80.

Trex (NYSE:TREX - Get Free Report) last released its quarterly earnings data on Tuesday, February 24th. The construction company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of ($0.01) by $0.05. Trex had a net margin of 16.22% and a return on equity of 20.29%. The firm had revenue of $161.13 million during the quarter, compared to the consensus estimate of $144.39 million. During the same quarter in the previous year, the company posted $0.09 earnings per share. The firm's revenue was down 3.9% on a year-over-year basis. As a group, equities analysts predict that Trex will post 2.04 earnings per share for the current year.

About Trex

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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