Trex (NYSE:TREX) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Trex has been downgraded from a "hold" to a "strong sell" rating by Zacks Research, influencing market sentiment around the stock.
• The company's recent quarterly earnings report showed an EPS of $0.74, surpassing estimates and reflecting a 3.0% increase in revenue year-over-year.
• Institutional investors are actively adjusting their positions, with many increasing their stakes in Trex, indicating some confidence in the company's long-term prospects.

Trex (NYSE:TREX - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other equities research analysts have also recently issued reports on the company. Loop Capital restated a "hold" rating and set a $66.00 price objective on shares of Trex in a report on Tuesday, August 5th. B. Riley upgraded Trex to a "strong-buy" rating in a report on Monday, July 21st. Baird R W upgraded Trex from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 10th. Robert W. Baird upgraded Trex from a "neutral" rating to an "outperform" rating and boosted their price objective for the stock from $65.00 to $75.00 in a report on Thursday, July 10th. Finally, The Goldman Sachs Group reduced their price objective on Trex from $83.00 to $73.00 and set a "buy" rating for the company in a report on Monday. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $71.00.

Trex Stock Up 3.4%

Shares of NYSE TREX opened at $53.11 on Monday. The business's 50 day moving average price is $58.03 and its two-hundred day moving average price is $58.24. The company has a market cap of $5.70 billion, a PE ratio of 30.70, a price-to-earnings-growth ratio of 2.14 and a beta of 1.49. Trex has a twelve month low of $49.01 and a twelve month high of $80.74.

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

Insider Buying and Selling

In other Trex 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 transaction of $98,708.84. Following the completion of the transaction, the senior vice president directly owned 22,953 shares in the company, 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 document filed with the Securities & Exchange Commission, which is available at this link. 0.74% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in TREX. GAMMA Investing LLC raised its position in Trex by 137.7% during the first quarter. GAMMA Investing LLC now owns 1,666 shares of the construction company's stock valued at $97,000 after purchasing an additional 965 shares in the last quarter. Janney Montgomery Scott LLC raised its position in Trex by 26.0% during the first quarter. Janney Montgomery Scott LLC now owns 70,990 shares of the construction company's stock valued at $4,125,000 after purchasing an additional 14,670 shares in the last quarter. State of Alaska Department of Revenue raised its position in Trex by 2.7% during the first quarter. State of Alaska Department of Revenue now owns 12,546 shares of the construction company's stock valued at $728,000 after purchasing an additional 330 shares in the last quarter. Blue Trust Inc. raised its position in Trex by 55.9% during the first quarter. Blue Trust Inc. now owns 1,138 shares of the construction company's stock valued at $66,000 after purchasing an additional 408 shares in the last quarter. Finally, Monte Financial Group LLC raised its position in Trex by 52.1% during the first quarter. Monte Financial Group LLC now owns 23,427 shares of the construction company's stock valued at $1,303,000 after purchasing an additional 8,028 shares in the last quarter. 95.96% of the stock is currently owned by institutional investors and hedge funds.

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.

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