Zelman & Associates Has Lowered Expectations for Trex (NYSE:TREX) Stock Price

Key Points

• Zelman & Associates has reduced its price target for Trex (NYSE:TREX) stock from $74.00 to $66.00, while maintaining an "outperform" rating, indicating a potential upside of 30.70% from the last close.
• The stock has received mixed ratings from various brokerages, with two analysts giving it a Strong Buy rating and others ranging from Buy to Sell.
• Trex recently reported quarterly earnings of $0.74 EPS, surpassing estimates and showing a year-over-year revenue increase of 3.0%.

Trex (NYSE:TREX - Get Free Report) had its price target decreased by equities research analysts at Zelman & Associates from $74.00 to $66.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an "outperform" rating on the construction company's stock. Zelman & Associates' target price would indicate a potential upside of 30.70% from the stock's previous close.

A number of other brokerages have also commented on TREX. B. Riley upgraded shares of Trex to a "strong-buy" rating in a report on Monday, July 21st. Zacks Research lowered shares of Trex from a "hold" rating to a "strong sell" rating in a research note on Monday. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Trex in a report on Wednesday, October 8th. JPMorgan Chase & Co. cut their price objective on shares of Trex from $73.00 to $71.00 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Finally, Wall Street Zen raised shares of Trex from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $70.71.

Trex Trading Down 1.0%

TREX traded down $0.49 during trading on Friday, hitting $50.50. The stock had a trading volume of 349,292 shares, compared to its average volume of 1,624,512. The firm has a market cap of $5.41 billion, a PE ratio of 29.19, a P/E/G ratio of 2.18 and a beta of 1.49. Trex has a 12 month low of $49.01 and a 12 month high of $80.74. The company has a 50 day simple moving average of $57.65 and a 200-day simple moving average of $58.16.

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

Insider Transactions at Trex

In related news, SVP Amy M. Fernandez sold 1,538 shares of Trex stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $64.18, for a total value of $98,708.84. Following the transaction, the senior vice president directly owned 22,953 shares of the company's stock, valued at $1,473,123.54. The trade was a 6.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.71% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Trex

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD increased its holdings in Trex by 132.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 7,297,863 shares of the construction company's stock worth $424,007,000 after acquiring an additional 4,163,014 shares in the last quarter. American Century Companies Inc. lifted its holdings in shares of Trex by 8.4% during the second quarter. American Century Companies Inc. now owns 2,137,918 shares of the construction company's stock worth $116,260,000 after purchasing an additional 165,793 shares during the period. Madison Asset Management LLC acquired a new stake in shares of Trex during the first quarter worth about $109,852,000. Geneva Capital Management LLC raised its position in Trex by 7.6% during the second quarter. Geneva Capital Management LLC now owns 1,722,606 shares of the construction company's stock valued at $93,675,000 after acquiring an additional 121,722 shares in the last quarter. Finally, Bank of America Corp DE raised its position in Trex by 93.1% during the second quarter. Bank of America Corp DE now owns 1,299,381 shares of the construction company's stock valued at $70,660,000 after acquiring an additional 626,452 shares in the last quarter. Institutional investors own 95.96% of the company's stock.

Trex Company Profile

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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