Trex Company, Inc. (NYSE:TREX) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Trex Company, Inc. has received a consensus rating of "Moderate Buy" from analysts, with six buy and two strong buy recommendations among a total of sixteen analysts.
• The stock's average one-year price target is approximately $71.93, with recent upgrades from Robert W. Baird raising the target price to $75.00.
• Trex reported a quarterly earnings per share of $0.74, exceeding analyst expectations, with a year-over-year revenue increase of 3.0%.

Trex Company, Inc. (NYSE:TREX - Get Free Report) has been given a consensus rating of "Moderate Buy" by the sixteen brokerages that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, six have assigned a buy rating and two have issued a strong buy rating on the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $71.9286.

A number of analysts have recently issued reports on the stock. Wall Street Zen raised shares of Trex from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. Loop Capital reissued a "hold" rating and set a $66.00 target price on shares of Trex in a research note on Tuesday, August 5th. Robert W. Baird raised shares of Trex from a "neutral" rating to an "outperform" rating and boosted their target price for the company from $65.00 to $75.00 in a research note on Thursday, July 10th. JPMorgan Chase & Co. lowered their price objective on shares of Trex from $73.00 to $71.00 and set a "neutral" rating for the company in a research note on Wednesday, August 6th. Finally, Benchmark reissued a "buy" rating and set a $80.00 target price on shares of Trex in a research report on Monday, May 12th.

Trex Price Performance

Shares of NYSE:TREX traded down $0.3840 on Monday, hitting $61.3560. 540,782 shares of the company's stock were exchanged, compared to its average volume of 1,616,066. The stock has a market capitalization of $6.58 billion, a price-to-earnings ratio of 35.46, a price-to-earnings-growth ratio of 2.68 and a beta of 1.51. Trex has a 12 month low of $49.01 and a 12 month high of $80.74. The business's 50 day simple moving average is $60.68 and its two-hundred day simple moving average is $59.76.

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

Insider Buying and Selling

In related news, SVP Amy M. Fernandez sold 1,538 shares of the business's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $64.18, for a total value of $98,708.84. Following the completion of the transaction, the senior vice president owned 22,953 shares of the company's stock, valued at $1,473,123.54. The trade was a 6.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.71% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the stock. State of Wyoming raised its holdings in Trex by 31.2% in the second quarter. State of Wyoming now owns 4,416 shares of the construction company's stock worth $240,000 after purchasing an additional 1,051 shares in the last quarter. Hudson Bay Capital Management LP bought a new position in Trex in the second quarter worth about $218,000. Geneos Wealth Management Inc. raised its holdings in Trex by 190.2% in the second quarter. Geneos Wealth Management Inc. now owns 5,171 shares of the construction company's stock worth $281,000 after purchasing an additional 3,389 shares in the last quarter. Caxton Associates LLP bought a new position in Trex in the second quarter worth about $1,341,000. Finally, Tower Research Capital LLC TRC raised its holdings in Trex by 183.2% in the second quarter. Tower Research Capital LLC TRC now owns 12,488 shares of the construction company's stock worth $679,000 after purchasing an additional 8,078 shares in the last quarter. 95.96% of the stock is owned by 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.