UBS Group Reiterates "Neutral" Rating for Trex (NYSE:TREX)

Key Points

• UBS Group has raised the price target for Trex (NYSE:TREX) from $72.00 to $74.00, indicating a potential upside of 13.80% from its current price, while maintaining a "neutral" rating on the stock.
• The average rating for Trex's stock is categorized as "Moderate Buy", with a consensus price target of $75.00, reflecting mixed ratings from various analysts.
• Trex reported earnings of $0.60 EPS for the last quarter, which was above the consensus estimate, but revenue was down 9.0% year-over-year.

UBS Group reissued their neutral rating on shares of Trex (NYSE:TREX - Free Report) in a research report released on Tuesday morning, MarketBeat Ratings reports. UBS Group currently has a $74.00 price target on the construction company's stock, up from their previous price target of $72.00.

Other research analysts also recently issued research reports about the stock. BMO Capital Markets upgraded shares of Trex from a "market perform" rating to an "outperform" rating and set a $72.00 price objective on the stock in a report on Thursday, April 17th. B. Riley upgraded shares of Trex to a "strong-buy" rating in a research report on Monday, July 21st. Stephens lowered their price target on Trex from $73.00 to $65.00 and set an "equal weight" rating for the company in a report on Monday, May 12th. Barclays reduced their price objective on Trex from $67.00 to $54.00 and set an "underweight" rating for the company in a research report on Tuesday, April 8th. Finally, Baird R W raised shares of Trex from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 10th. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating, seven have issued a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $74.31.

Trex Stock Down 7.0%

Shares of NYSE TREX opened at $61.12 on Tuesday. Trex has a 12 month low of $49.01 and a 12 month high of $80.74. The company has a market cap of $6.55 billion, a price-to-earnings ratio of 35.33, a P/E/G ratio of 2.77 and a beta of 1.51. The business has a fifty day simple moving average of $59.47 and a 200-day simple moving average of $60.51.

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. Trex had a net margin of 16.53% and a return on equity of 21.27%. The company had revenue of $387.80 million during the quarter, compared to analyst estimates of $377.49 million. During the same quarter last year, the business posted $0.80 EPS. The company's revenue for the quarter was up 3.0% on a year-over-year basis. As a group, sell-side analysts expect that Trex will post 2.04 EPS for the current fiscal year.

Insider Activity

In other news, SVP Amy M. Fernandez sold 2,366 shares of the business's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $61.17, for a total transaction of $144,728.22. Following the sale, the senior vice president owned 24,569 shares in the company, valued at approximately $1,502,885.73. The trade was a 8.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Jacob T. Rudolph sold 1,500 shares of the business's stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $60.27, for a total transaction of $90,405.00. Following the sale, the senior vice president directly owned 27,527 shares in the company, valued at $1,659,052.29. The trade was a 5.17% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.71% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. O Shaughnessy Asset Management LLC raised its holdings in Trex by 14.9% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 5,757 shares of the construction company's stock valued at $397,000 after buying an additional 747 shares during the period. Huntington National Bank increased its stake in Trex by 227.2% in the fourth quarter. Huntington National Bank now owns 566 shares of the construction company's stock worth $39,000 after purchasing an additional 393 shares during the period. Wells Fargo & Company MN boosted its stake in shares of Trex by 1.8% during the fourth quarter. Wells Fargo & Company MN now owns 159,583 shares of the construction company's stock valued at $11,016,000 after purchasing an additional 2,799 shares during the period. Resona Asset Management Co. Ltd. purchased a new position in Trex in the 4th quarter worth about $122,000. Finally, Envestnet Asset Management Inc. lifted its holdings in Trex by 8.5% during the 4th quarter. Envestnet Asset Management Inc. now owns 327,247 shares of the construction company's stock valued at $22,590,000 after buying an additional 25,540 shares in the last quarter. 95.96% of the stock is currently owned by institutional investors.

Trex Company Profile

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.