Trex (NYSE:TREX) Shares Down 4% - Here's Why

Key Points

• Trex Company, Inc. (NYSE:TREX) shares dropped 4% during mid-day trading, reaching a low of $56.46 before closing at $55.97.
• Equities research analysts have mixed ratings for Trex; while B. Riley and Baird R W have upgraded their ratings to "strong-buy," JPMorgan Chase & Co. has set a neutral rating with a target price reduction to $71.00.
• Trex recently reported a quarterly EPS of $0.74, beating expectations, and noted a 3% year-over-year revenue growth to $387.80 million.

Trex Company, Inc. (NYSE:TREX - Get Free Report) traded down 4% during trading on Wednesday . The company traded as low as $56.46 and last traded at $55.97. 501,727 shares were traded during mid-day trading, a decline of 68% from the average session volume of 1,590,502 shares. The stock had previously closed at $58.29.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. DA Davidson set a $65.00 target price on Trex and gave the stock a "neutral" rating in a research report on Tuesday, August 5th. Baird R W raised Trex from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 10th. JPMorgan Chase & Co. reduced their price objective on Trex from $73.00 to $71.00 and set a "neutral" rating for the company in a research note on Wednesday, August 6th. Robert W. Baird raised shares of Trex from a "neutral" rating to an "outperform" rating and increased their price target for the stock from $65.00 to $75.00 in a report on Thursday, July 10th. Finally, Loop Capital reiterated a "hold" rating and issued a $66.00 price target on shares of Trex in a report on Tuesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $71.93.

Trex Price Performance

The stock has a market capitalization of $5.69 billion, a price-to-earnings ratio of 30.68, a price-to-earnings-growth ratio of 2.22 and a beta of 1.51. The company has a 50-day simple moving average of $62.38 and a two-hundred day simple moving average of $58.96.

Trex (NYSE:TREX - Get Free Report) last announced its quarterly earnings results on Monday, August 4th. The construction company reported $0.74 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $377.49 million. During the same quarter last year, the business earned $0.80 earnings per share. Trex's revenue was up 3.0% compared to the same quarter last year. Trex has set its Q3 2025 guidance at EPS. Research analysts anticipate that Trex Company, Inc. will post 2.04 EPS for the current year.

Insiders Place Their Bets

In other Trex news, SVP Amy M. Fernandez sold 1,538 shares of the business's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $64.18, for a total value of $98,708.84. Following the sale, the senior vice president directly owned 22,953 shares in the company, valued at approximately $1,473,123.54. The trade was a 6.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.74% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Trex

Institutional investors and hedge funds have recently modified their holdings of the stock. Armstrong Advisory Group Inc. purchased a new position in Trex during the 2nd quarter worth approximately $31,000. Parallel Advisors LLC increased its position in Trex by 28.4% during the second quarter. Parallel Advisors LLC now owns 1,049 shares of the construction company's stock worth $57,000 after acquiring an additional 232 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Trex during the 2nd quarter worth approximately $60,000. Brooklyn Investment Group raised its position in 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 in the last quarter. Finally, CWM LLC boosted its stake in shares of Trex by 16.8% in the 2nd quarter. CWM LLC now owns 1,141 shares of the construction company's stock valued at $62,000 after purchasing an additional 164 shares in the last quarter. 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.