Trex (NYSE:TREX) Share Price Passes Above Two Hundred Day Moving Average - What's Next?

Key Points

• Trex shares moved above their 200-day moving average during Friday’s trading, signaling a potential technical breakout. The stock traded as high as $44.73 and last changed hands around $43.48.
• Analyst sentiment is mixed, with recent price-target increases from several firms but an overall consensus rating of “Hold.” The average price target now stands at $49.00, while recent targets range from $42 to $56.
• Trex’s latest earnings beat expectations, reporting $0.59 EPS versus the $0.51 consensus and revenue of $343.4 million, slightly above estimates. The company also saw strong institutional ownership, with hedge funds and asset managers holding most of the shares.

Trex Company, Inc. (NYSE:TREX - Get Free Report) crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $41.57 and traded as high as $44.73. Trex shares last traded at $43.4770, with a volume of 1,960,534 shares.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on TREX. The Goldman Sachs Group reissued a "buy" rating and issued a $56.00 price objective (up from $49.00) on shares of Trex in a report on Friday, July 10th. Bank of America lifted their target price on shares of Trex from $42.00 to $44.00 and gave the stock an "underperform" rating in a research note on Tuesday, July 14th. Stifel Nicolaus increased their price target on shares of Trex from $44.00 to $47.00 and gave the company a "hold" rating in a research note on Tuesday, July 14th. Barclays restated an "underweight" rating and set a $42.00 price target (up from $36.00) on shares of Trex in a report on Tuesday, July 14th. Finally, DA Davidson reaffirmed a "buy" rating and set a $55.00 price target on shares of Trex in a research report on Tuesday, July 14th. One analyst has 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 company's stock. According to data from MarketBeat, Trex has a consensus rating of "Hold" and an average price target of $49.00.

Trex Trading Up 2.6%

The firm's fifty day moving average is $44.28 and its 200-day moving average is $41.57. The stock has a market capitalization of $4.52 billion, a PE ratio of 24.29, a price-to-earnings-growth ratio of 4.91 and a beta of 1.46.

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

Insider Buying and Selling at Trex

In related news, SVP Jacob T. Rudolph sold 1,400 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $50.00, for a total transaction 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 approximately $1,831,550. This trade represents a 3.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.93% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP boosted its position in shares of Trex by 266.0% during the fourth quarter. Wellington Management Group LLP now owns 7,225,393 shares of the construction company's stock worth $253,467,000 after buying an additional 5,251,297 shares during the period. AQR Capital Management LLC raised its holdings in shares of Trex by 143.8% in the 4th quarter. AQR Capital Management LLC now owns 3,895,534 shares of the construction company's stock valued at $136,655,000 after buying an additional 2,297,533 shares during the period. Morgan Stanley lifted its stake in Trex by 44.6% during the 4th 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 in the last quarter. Geode Capital Management LLC boosted its holdings in Trex by 1.3% during the 4th quarter. Geode Capital Management LLC now owns 1,913,263 shares of the construction company's stock valued at $67,132,000 after acquiring an additional 24,892 shares during the period. Finally, Norges Bank purchased a new position in Trex during the 4th quarter valued at about $62,904,000. 95.96% of the stock is currently owned by institutional investors and hedge funds.

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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