Trex (NYSE:TREX) Stock Price Crosses Above 200 Day Moving Average - Here's What Happened

Key Points

• Trex shares moved above their 200-day moving average, reaching $49.00 before last trading at $47.6920. The stock’s 200-day average was $42.24, while its consensus analyst price target stood at $49.30.
• Recent analyst views were mixed but generally constructive: the consensus rating was “Hold”, based on one Strong Buy, ten Buys, nine Holds and two Sells. Price targets ranged from $50 to $56 among several firms.
• Trex’s latest quarterly revenue rose 7.8% year over year to $418.02 million, exceeding estimates, though earnings per share of $0.62 narrowly missed expectations. Institutional investors owned 95.96% of the company, while insiders recently reported modest stock sales.

Shares of Trex Company, Inc. (NYSE:TREX - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $42.24 and traded as high as $49.00. Trex shares last traded at $47.6920, with a volume of 1,274,890 shares.

Wall Street Analyst Weigh In

Several research firms recently issued reports on TREX. Weiss Ratings raised shares of Trex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 4th. DA Davidson reissued a "buy" rating and set a $55.00 target price on shares of Trex in a research report on Tuesday, July 14th. Stephens raised their target price on Trex from $45.00 to $50.00 and gave the company an "equal weight" rating in a report on Tuesday, July 28th. The Goldman Sachs Group restated a "buy" rating and set a $56.00 target price (up from $49.00) on shares of Trex in a report on Friday, July 10th. Finally, Citigroup reaffirmed a "neutral" rating and issued a $52.00 price target (up from $43.00) on shares of Trex in a research report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Trex has an average rating of "Hold" and a consensus target price of $49.30.

Trex Trading Down 2.2%

The company's fifty day moving average is $46.57 and its 200-day moving average is $42.24. The firm has a market capitalization of $4.96 billion, a P/E ratio of 28.39, a P/E/G ratio of 3.43 and a beta of 1.48.

Trex (NYSE:TREX - Get Free Report) last released its earnings results on Tuesday, August 4th. The construction company reported $0.62 earnings per share for the quarter, missing analysts' consensus estimates of $0.63 by ($0.01). Trex had a return on equity of 18.03% and a net margin of 14.68%.The firm had revenue of $418.02 million for the quarter, compared to analyst estimates of $415.71 million. During the same period in the prior year, the firm earned $0.71 EPS. The firm's revenue was up 7.8% on a year-over-year basis. On average, equities research analysts anticipate that Trex Company, Inc. will post 1.76 EPS for the current year.

Insider Activity

In related news, SVP Jacob T. Rudolph sold 1,400 shares of the business's stock in a transaction dated Thursday, June 25th. The stock was 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. The trade was a 3.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Amy M. Fernandez sold 1,050 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $50.07, for a total value of $52,573.50. Following the sale, the senior vice president owned 67,794 shares of the company's stock, valued at approximately $3,394,445.58. The trade was a 1.53% decrease in their position. The SEC filing for this sale provides additional information. 0.93% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in Trex during the second quarter worth $525,081,000. Wellington Management Group LLP boosted its holdings in Trex by 266.0% in the 4th quarter. Wellington Management Group LLP now owns 7,225,393 shares of the construction company's stock valued at $253,467,000 after purchasing an additional 5,251,297 shares during the period. AQR Capital Management LLC grew its position in Trex by 143.8% in the 4th quarter. AQR Capital Management LLC now owns 3,895,534 shares of the construction company's stock worth $136,655,000 after purchasing an additional 2,297,533 shares during the last quarter. Bank of America Corp DE acquired a new stake in Trex in the 2nd quarter worth $94,851,000. Finally, Norges Bank acquired a new stake in Trex in the 4th quarter worth $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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