Trex (NYSE:TREX) Given New $35.00 Price Target at Barclays

Key Points

• Barclays cut its price target on Trex from $39.00 to $35.00 and kept an "underweight" rating, implying about a 5.2% downside from the stock's current price.
• Analysts are split: the consensus price target is $47.58 with 10 Buys, 10 Holds and 3 Sells, signaling a materially higher street expectation than Barclays' view.
• Trex recently beat quarterly estimates (revenue $161.13M; EPS $0.04) and the stock traded around $36.92 mid-day, with a market cap of $3.84 billion and a one‑year range of $29.77–$68.78.

Trex (NYSE:TREX - Get Free Report) had its target price reduced by equities researchers at Barclays from $39.00 to $35.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has an "underweight" rating on the construction company's stock. Barclays's price target indicates a potential downside of 5.20% from the company's current price.

TREX has been the topic of a number of other research reports. Wolfe Research upgraded shares of Trex from a "peer perform" rating to an "outperform" rating and set a $47.00 price objective on the stock in a research report on Wednesday, January 7th. Loop Capital upgraded shares of Trex from a "hold" rating to a "buy" rating and boosted their price objective for the company from $45.00 to $53.00 in a research report on Wednesday, February 25th. DA Davidson raised their price target on shares of Trex from $50.00 to $51.00 and gave the stock a "buy" rating in a research note on Wednesday, March 11th. BMO Capital Markets reaffirmed an "outperform" rating and issued a $54.00 price target on shares of Trex in a research note on Thursday, January 8th. Finally, The Goldman Sachs Group set a $54.00 price target on shares of Trex and gave the stock a "buy" rating in a research note on Tuesday, December 16th. Ten investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, Trex has an average rating of "Hold" and a consensus price target of $47.58.

Trex Stock Performance

TREX stock traded up $1.47 during mid-day trading on Wednesday, reaching $36.92. 771,193 shares of the stock traded hands, compared to its average volume of 1,971,934. Trex has a one year low of $29.77 and a one year high of $68.78. The stock has a market capitalization of $3.84 billion, a PE ratio of 20.89, a PEG ratio of 8.18 and a beta of 1.61. The business has a 50-day moving average price of $39.60 and a two-hundred day moving average price of $40.66.

Trex (NYSE:TREX - Get Free Report) last posted its quarterly earnings data on Tuesday, February 24th. The construction company reported $0.04 earnings per share for the quarter, beating 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 business had revenue of $161.13 million for the quarter, compared to analysts' expectations of $144.39 million. During the same quarter in the previous year, the business posted $0.09 earnings per share. The business's revenue was down 3.9% compared to the same quarter last year. On average, equities analysts expect that Trex will post 2.04 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Alliancebernstein L.P. lifted its stake in Trex by 1.9% in the third quarter. Alliancebernstein L.P. now owns 7,543,925 shares of the construction company's stock worth $389,795,000 after acquiring an additional 142,215 shares during the period. Wellington Management Group LLP lifted its stake in Trex by 266.0% in the fourth quarter. Wellington Management Group LLP now owns 7,225,393 shares of the construction company's stock worth $253,467,000 after acquiring an additional 5,251,297 shares during the period. AQR Capital Management LLC lifted its stake in Trex by 143.8% in the fourth quarter. AQR Capital Management LLC now owns 3,895,534 shares of the construction company's stock worth $136,655,000 after acquiring an additional 2,297,533 shares during the period. Morgan Stanley lifted its stake in Trex by 44.6% in the fourth quarter. Morgan Stanley now owns 2,313,285 shares of the construction company's stock worth $81,150,000 after acquiring an additional 713,054 shares during the period. Finally, American Century Companies Inc. lifted its stake in Trex by 2.5% in the third quarter. American Century Companies Inc. now owns 2,191,472 shares of the construction company's stock worth $113,233,000 after acquiring an additional 53,554 shares during the period. Hedge funds and other institutional investors own 95.96% of the company's stock.

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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