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

Key Points

• Analysts give Trex a consensus Hold rating from 23 firms (3 sell, 10 hold, 10 buy) with an average 12‑month price target of $47.88.
• Trex beat Q4 estimates—EPS $0.04 vs. (‑$0.01) expected and revenue $161.13M vs. $144.39M expected—though revenue was down 3.9% year‑over‑year; net margin was 16.22% and ROE 20.29%.
• Institutional investors own about 95.96% of the stock; Trex trades at a $4.35B market cap with a P/E of 23.67 and a 1‑year range of $29.77–$68.78.

Shares of Trex Company, Inc. (NYSE:TREX - Get Free Report) have earned a consensus recommendation of "Hold" from the twenty-three ratings firms that are covering the firm, MarketBeat Ratings reports. Three analysts have rated the stock with a sell rating, ten have assigned a hold rating and ten have given a buy rating to the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $47.8750.

A number of brokerages recently weighed in on TREX. Weiss Ratings restated a "sell (d+)" rating on shares of Trex in a report on Friday, March 27th. Loop Capital raised shares of Trex from a "hold" rating to a "buy" rating and raised their price objective for the stock from $45.00 to $53.00 in a research note on Wednesday, February 25th. UBS Group raised their price objective on shares of Trex from $52.00 to $58.00 and gave the stock a "buy" rating in a research note on Wednesday, February 25th. Wall Street Zen lowered shares of Trex from a "hold" rating to a "sell" rating in a research note on Saturday, April 11th. Finally, DA Davidson increased their target price on shares of Trex from $50.00 to $51.00 and gave the stock a "buy" rating in a research report on Wednesday, March 11th.

Institutional Investors Weigh In On Trex

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. WCM Investment Management LLC lifted its stake in shares of Trex by 734.5% in the 3rd quarter. WCM Investment Management LLC now owns 39,566 shares of the construction company's stock valued at $2,033,000 after purchasing an additional 34,825 shares during the last quarter. Lisanti Capital Growth LLC acquired a new stake in shares of Trex in the 3rd quarter valued at $3,614,000. Thrivent Financial for Lutherans lifted its stake in shares of Trex by 7.9% in the 3rd quarter. Thrivent Financial for Lutherans now owns 906,892 shares of the construction company's stock valued at $46,859,000 after purchasing an additional 66,721 shares during the last quarter. Federated Hermes Inc. lifted its stake in shares of Trex by 90.6% in the 3rd quarter. Federated Hermes Inc. now owns 1,469,878 shares of the construction company's stock valued at $75,949,000 after purchasing an additional 698,628 shares during the last quarter. Finally, Pembroke Management LTD lifted its stake in shares of Trex by 11.5% in the 3rd quarter. Pembroke Management LTD now owns 476,311 shares of the construction company's stock valued at $24,611,000 after purchasing an additional 49,073 shares during the last quarter. Hedge funds and other institutional investors own 95.96% of the company's stock.

Trex Stock Performance

Shares of NYSE:TREX opened at $41.90 on Friday. The stock has a market capitalization of $4.35 billion, a price-to-earnings ratio of 23.67, a PEG ratio of 9.70 and a beta of 1.61. Trex has a 1-year low of $29.77 and a 1-year high of $68.78. The company has a 50 day moving average price of $39.12 and a 200 day moving average price of $39.85.

Trex (NYSE:TREX - Get Free Report) last issued its earnings results on Tuesday, February 24th. The construction company reported $0.04 earnings per share for the quarter, topping analysts' consensus estimates of ($0.01) by $0.05. The firm had revenue of $161.13 million during the quarter, compared to analysts' expectations of $144.39 million. Trex had a net margin of 16.22% and a return on equity of 20.29%. The firm's revenue for the quarter was down 3.9% compared to the same quarter last year. During the same period last year, the firm posted $0.09 earnings per share. On average, sell-side analysts expect that Trex will post 1.63 EPS for the current fiscal 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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