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

Key Points

• Trex Company has a consensus analyst rating of "Hold" from 22 covering firms, with 11 buy ratings, 9 holds, and 2 sells. The average 12-month price target is about $46.68.
• Recent analyst moves were mixed: Citigroup cut its target to $43 with a neutral rating, while Truist set a $55 buy target and Barclays kept an underweight rating with a $36 target.
• Trex reported better-than-expected Q1 earnings, earning $0.59 per share versus $0.51 expected, and revenue of $343.4 million topped estimates. Shares were down about 2.6% on the day, even after the earnings beat.

Shares of Trex Company, Inc. (NYSE:TREX - Get Free Report) have been given a consensus recommendation of "Hold" by the twenty-two ratings firms that are presently covering the company, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and eleven 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 $46.6842.

TREX has been the subject of several recent research reports. Citigroup reaffirmed a "neutral" rating and set a $43.00 price objective (down from $46.00) on shares of Trex in a research report on Monday, May 11th. Truist Financial set a $55.00 target price on Trex and gave the company a "buy" rating in a research note on Monday, June 22nd. Stifel Nicolaus upped their price target on Trex from $40.00 to $44.00 and gave the stock a "hold" rating in a research report on Monday, May 11th. Barclays reaffirmed an "underweight" rating and set a $36.00 price target (up from $35.00) on shares of Trex in a research note on Monday, May 11th. Finally, Bank of America lowered their price objective on shares of Trex from $43.00 to $42.00 and set an "underperform" rating on the stock in a report on Monday, April 20th.

Insiders Place Their Bets

In other Trex news, SVP Jacob T. Rudolph sold 1,400 shares of Trex stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $50.00, for a total value of $70,000.00. Following the sale, 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 filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.93% of the company's stock.

Hedge Funds Weigh In On Trex

Large investors have recently modified their holdings of the business. AQR Capital Management LLC increased its position in shares of Trex by 3.2% in the first quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company's stock valued at $320,000 after acquiring an additional 177 shares during the last quarter. Benjamin Edwards Inc. boosted its position in Trex by 1.9% during 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 last quarter. Pinnacle Associates Ltd. grew its stake in Trex by 0.7% in the fourth quarter. Pinnacle Associates Ltd. now owns 40,285 shares of the construction company's stock valued at $1,413,000 after purchasing an additional 285 shares in the last quarter. Hsbc Holdings PLC grew its stake in Trex by 6.3% in the second quarter. Hsbc Holdings PLC now owns 5,403 shares of the construction company's stock valued at $294,000 after purchasing an additional 322 shares in the last quarter. Finally, CIBC Private Wealth Group LLC grew its stake in Trex by 0.7% in the third quarter. CIBC Private Wealth Group LLC now owns 45,646 shares of the construction company's stock valued at $2,359,000 after purchasing an additional 333 shares in the last quarter. 95.96% of the stock is currently owned by institutional investors and hedge funds.

Trex Stock Down 2.6%

Shares of NYSE:TREX opened at $45.89 on Thursday. Trex has a 12 month low of $29.77 and a 12 month high of $68.78. The company's fifty day simple moving average is $43.01 and its 200 day simple moving average is $40.85. The firm has a market cap of $4.77 billion, a price-to-earnings ratio of 25.64, a PEG ratio of 9.57 and a beta of 1.46.

Trex (NYSE:TREX - Get Free Report) last announced its earnings results on Thursday, May 7th. The construction company reported $0.59 earnings per share for the quarter, topping analysts' consensus estimates of $0.51 by $0.08. The firm had revenue of $343.40 million during the quarter, compared to analyst estimates of $339.99 million. Trex had a net margin of 16.25% and a return on equity of 19.66%. The company's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.60 EPS. Research analysts expect that Trex will post 1.68 earnings per share 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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