Trex (NYSE:TREX) Trading Down 5% - Here's What Happened

Trex Company, Inc. (NYSE:TREX - Get Free Report) dropped 5% during trading on Monday . The company traded as low as $53.04 and last traded at $53.06. Approximately 872,947 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 1,553,985 shares. The stock had previously closed at $55.87.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. UBS Group cut their target price on shares of Trex from $74.00 to $72.00 and set a "neutral" rating for the company in a research report on Friday, May 9th. Deutsche Bank Aktiengesellschaft assumed coverage on Trex in a research report on Tuesday, April 1st. They set a "buy" rating and a $85.00 price target for the company. DA Davidson reaffirmed a "neutral" rating and set a $74.00 price objective on shares of Trex in a research note on Tuesday, February 25th. Jefferies Financial Group reduced their target price on shares of Trex from $81.00 to $71.00 and set a "hold" rating on the stock in a report on Tuesday, February 25th. Finally, Stephens cut their price objective on shares of Trex from $73.00 to $65.00 and set an "equal weight" rating for the company in a research report on Monday, May 12th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and eight have given a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $76.65.

Trex Trading Up 0.1%

The firm has a 50-day moving average of $56.99 and a 200 day moving average of $64.22. The stock has a market capitalization of $6.08 billion, a price-to-earnings ratio of 25.88, a price-to-earnings-growth ratio of 2.51 and a beta of 1.52.

Trex (NYSE:TREX - Get Free Report) last issued its earnings results on Thursday, May 8th. The construction company reported $0.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.58 by $0.02. The business had revenue of $339.99 million for the quarter, compared to analyst estimates of $329.11 million. Trex had a net margin of 20.23% and a return on equity of 28.89%. The company's revenue for the quarter was down 9.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.82 EPS. As a group, research analysts forecast that Trex Company, Inc. will post 2.04 EPS for the current year.

Insiders Place Their Bets

In related news, SVP Amy M. Fernandez sold 2,366 shares of the stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $61.17, for a total value of $144,728.22. Following the completion of the transaction, the senior vice president now owns 24,569 shares in the company, valued at $1,502,885.73. This represents a 8.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Jacob T. Rudolph sold 1,500 shares of the business's stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $60.27, for a total transaction of $90,405.00. Following the sale, the senior vice president now owns 27,527 shares in the company, valued at $1,659,052.29. This trade represents a 5.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.71% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Pictet Asset Management Holding SA lifted its stake in Trex by 7.1% during the fourth quarter. Pictet Asset Management Holding SA now owns 14,538 shares of the construction company's stock valued at $1,004,000 after purchasing an additional 969 shares during the last quarter. Rhumbline Advisers lifted its position in shares of Trex by 2.2% during the 4th quarter. Rhumbline Advisers now owns 328,954 shares of the construction company's stock valued at $22,708,000 after acquiring an additional 7,163 shares during the last quarter. Stephens Inc. AR boosted its stake in shares of Trex by 10.6% during the 4th quarter. Stephens Inc. AR now owns 6,294 shares of the construction company's stock worth $434,000 after acquiring an additional 601 shares in the last quarter. Charles Schwab Investment Management Inc. grew its holdings in shares of Trex by 2.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 926,624 shares of the construction company's stock worth $63,965,000 after acquiring an additional 24,554 shares during the last quarter. Finally, Global Retirement Partners LLC grew its holdings in shares of Trex by 14.0% in the 4th quarter. Global Retirement Partners LLC now owns 3,806 shares of the construction company's stock worth $263,000 after acquiring an additional 467 shares during 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.