Trex (NYSE:TREX) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Trex from “hold” to “strong-buy”, adding to a mixed but generally positive analyst picture that includes several buy ratings and a consensus “Hold” with a $49 price target.
• Trex shares were up 4.8% and opened at $45.73; the stock has a $4.75 billion market cap and has traded between $29.77 and $68.78 over the past 12 months.
• The company recently beat earnings and revenue estimates, reporting $0.59 EPS on $343.4 million in revenue, while an insider sale by SVP Jacob T. Rudolph and heavy institutional ownership highlight ongoing investor activity.

Trex (NYSE:TREX - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Other analysts have also issued research reports about the stock. Barclays reaffirmed an "underweight" rating and set a $42.00 target price (up from $36.00) on shares of Trex in a report on Tuesday. DA Davidson reissued a "buy" rating and issued a $55.00 price target on shares of Trex in a research note on Tuesday. UBS Group restated a "buy" rating and issued a $61.00 price target (up from $59.00) on shares of Trex in a research report on Tuesday. Stifel Nicolaus lifted their price objective on Trex from $44.00 to $47.00 and gave the stock a "hold" rating in a research note on Tuesday. Finally, Zelman & Associates upgraded Trex from a "neutral" rating to an "outperform" rating and set a $50.00 price objective for the company in a report on Monday, May 18th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Trex presently has an average rating of "Hold" and a consensus price target of $49.00.

Trex Stock Up 4.8%

Shares of TREX stock opened at $45.73 on Wednesday. The firm has a market cap of $4.75 billion, a price-to-earnings ratio of 25.55, a PEG ratio of 5.05 and a beta of 1.46. Trex has a 12 month low of $29.77 and a 12 month high of $68.78. The stock has a 50-day moving average price of $43.74 and a 200 day moving average price of $41.28.

Trex (NYSE:TREX - Get Free Report) last released its earnings results on Thursday, May 7th. The construction company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.51 by $0.08. The company had revenue of $343.40 million for the quarter, compared to the consensus estimate of $339.99 million. Trex had a net margin of 16.25% and a return on equity of 19.66%. The company's revenue was up 1.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.60 EPS. Sell-side analysts predict that Trex will post 1.77 earnings per share for the current fiscal year.

Insider Buying and Selling at Trex

In other news, SVP Jacob T. Rudolph sold 1,400 shares of the business's 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 completion of the transaction, the senior vice president owned 36,631 shares of the company's stock, valued at $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 available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.93% of the stock is currently owned by corporate insiders.

Institutional Trading of Trex

Several hedge funds have recently added to or reduced their stakes in TREX. V Square Quantitative Management LLC bought a new position in Trex during the fourth quarter worth about $27,000. Clearstead Trust LLC bought a new stake in shares of Trex in the fourth quarter worth about $33,000. Ascentis Independent Advisors acquired a new stake in shares of Trex during the first quarter worth about $44,000. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Trex during the fourth quarter worth about $47,000. Finally, Empowered Funds LLC acquired a new stake in shares of Trex during the fourth quarter worth about $50,000. Institutional investors and hedge funds own 95.96% of the company's stock.

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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