Trex (NYSE:TREX) Reaches New 52-Week Low - Here's What Happened

Key Points

• Trex Company, Inc. (NYSE:TREX) reached a new 52-week low of $48.48, closing the day at $49.15, with trading volume exceeding 1 million shares.
• Despite the stock's decline, analysts maintain a consensus rating of "Moderate Buy" with an average price target of $70.71, reflecting optimism about future growth.
• Recent insider trading activities included a sale of 1,538 shares by SVP Amy M. Fernandez, reducing her stake by 6.28%.

Shares of Trex Company, Inc. (NYSE:TREX - Get Free Report) hit a new 52-week low during trading on Thursday . The company traded as low as $48.48 and last traded at $49.15, with a volume of 1073472 shares trading hands. The stock had previously closed at $50.51.

Wall Street Analysts Forecast Growth

TREX has been the subject of a number of recent analyst reports. UBS Group reaffirmed a "neutral" rating and issued a $74.00 price target (up from $72.00) on shares of Trex in a research note on Tuesday, August 5th. Stifel Nicolaus set a $61.00 price target on Trex and gave the company a "buy" rating in a research note on Wednesday, October 8th. Vertical Research started coverage on Trex in a research note on Monday. They issued a "buy" rating for the company. The Goldman Sachs Group lowered their target price on Trex from $83.00 to $73.00 and set a "buy" rating for the company in a research note on Monday, October 13th. Finally, Zelman & Associates lowered their target price on Trex from $74.00 to $66.00 and set an "outperform" rating for the company in a research note on Friday, October 17th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $70.71.

Trex Trading Down 2.5%

The firm has a market capitalization of $5.28 billion, a P/E ratio of 28.48, a PEG ratio of 2.14 and a beta of 1.49. The business has a 50 day moving average of $56.80 and a 200-day moving average of $57.98.

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

Insider Activity at Trex

In other news, SVP Amy M. Fernandez sold 1,538 shares of the stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $64.18, for a total value of $98,708.84. Following the completion of the sale, the senior vice president owned 22,953 shares of the company's stock, valued at approximately $1,473,123.54. This represents a 6.28% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.71% of the company's stock.

Institutional Investors Weigh In On Trex

Hedge funds and other institutional investors have recently modified their holdings of the company. Armstrong Advisory Group Inc. acquired a new stake in shares of Trex during the second quarter worth $31,000. Parallel Advisors LLC increased its position in shares of Trex by 28.4% in the second quarter. Parallel Advisors LLC now owns 1,049 shares of the construction company's stock worth $57,000 after purchasing an additional 232 shares during the period. Brooklyn Investment Group increased its position in shares of Trex by 35,733.3% in the first quarter. Brooklyn Investment Group now owns 1,075 shares of the construction company's stock worth $62,000 after purchasing an additional 1,072 shares during the period. Caitong International Asset Management Co. Ltd bought a new position in shares of Trex in the second quarter worth $60,000. Finally, Blue Trust Inc. increased its position in shares of Trex by 55.9% in the first quarter. Blue Trust Inc. now owns 1,138 shares of the construction company's stock worth $66,000 after purchasing an additional 408 shares during the period. Institutional investors and hedge funds own 95.96% of the company's stock.

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.

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