Zacks Investment Research Lowers Trex (NYSE:TREX) to Hold

Trex (NYSE:TREX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday, Zacks.com reports.

According to Zacks, “Trex Company, Inc. is a manufacturer of wood-alternative decking and railing. Trex Company, Inc. is based in Winchester, United States. “

TREX has been the subject of several other research reports. B. Riley increased their price target on Trex from $108.00 to $121.00 and gave the company a “neutral” rating in a research note on Tuesday, November 9th. They noted that the move was a valuation call. JPMorgan Chase & Co. cut Trex from a “neutral” rating to an “underweight” rating and set a $135.00 price target for the company. in a research note on Wednesday, December 15th. They noted that the move was a valuation call. Stephens increased their price target on Trex from $120.00 to $134.00 and gave the company an “overweight” rating in a research note on Tuesday, November 9th. Barclays upped their target price on Trex from $116.00 to $140.00 and gave the company an “equal weight” rating in a research report on Wednesday, December 15th. Finally, BMO Capital Markets upped their target price on Trex from $98.00 to $105.00 and gave the company a “market perform” rating in a research report on Tuesday, November 9th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, Trex presently has an average rating of “Hold” and an average target price of $123.75.

Shares of TREX opened at $106.95 on Friday. Trex has a 12-month low of $81.76 and a 12-month high of $140.98. The business has a 50-day simple moving average of $130.07 and a two-hundred day simple moving average of $112.90. The stock has a market cap of $12.31 billion, a PE ratio of 54.57 and a beta of 1.37.

Trex (NYSE:TREX) last issued its earnings results on Monday, November 8th. The construction company reported $0.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.06. Trex had a return on equity of 35.57% and a net margin of 20.21%. The business had revenue of $335.87 million during the quarter, compared to analysts’ expectations of $326.01 million. During the same quarter in the prior year, the firm earned $0.41 EPS. The business’s revenue for the quarter was up 45.1% compared to the same quarter last year. As a group, equities analysts forecast that Trex will post 2.11 earnings per share for the current fiscal year.

In related news, SVP William R. Gupp sold 2,150 shares of the firm’s stock in a transaction that occurred on Wednesday, November 10th. The shares were sold at an average price of $131.00, for a total value of $281,650.00. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Bryan Horix Fairbanks sold 3,508 shares of the firm’s stock in a transaction that occurred on Thursday, November 11th. The shares were sold at an average price of $127.89, for a total transaction of $448,638.12. The disclosure for this sale can be found here. Insiders have sold 16,274 shares of company stock valued at $2,123,699 in the last quarter. Company insiders own 0.69% of the company’s stock.

Several hedge funds have recently bought and sold shares of the business. Macquarie Group Ltd. boosted its holdings in Trex by 111.1% in the second quarter. Macquarie Group Ltd. now owns 3,682,629 shares of the construction company’s stock valued at $376,401,000 after acquiring an additional 1,938,142 shares in the last quarter. Alliancebernstein L.P. lifted its position in Trex by 16.7% during the third quarter. Alliancebernstein L.P. now owns 7,256,511 shares of the construction company’s stock valued at $739,656,000 after buying an additional 1,036,320 shares during the period. Artisan Partners Limited Partnership lifted its position in Trex by 192.9% during the second quarter. Artisan Partners Limited Partnership now owns 1,289,289 shares of the construction company’s stock valued at $131,778,000 after buying an additional 849,073 shares during the period. Blair William & Co. IL lifted its position in Trex by 30.2% during the second quarter. Blair William & Co. IL now owns 1,240,887 shares of the construction company’s stock valued at $126,831,000 after buying an additional 287,484 shares during the period. Finally, State Street Corp lifted its position in Trex by 8.3% during the second quarter. State Street Corp now owns 3,445,938 shares of the construction company’s stock valued at $352,209,000 after buying an additional 265,287 shares during the period. 92.78% of the stock is currently owned by hedge funds and other institutional investors.

About Trex

Trex Co, Inc engages in the manufacture of wood-alternative decking and railing. Its products include deck framing and drainage, outdoor lighting, furniture, pergola and outdoor kitchens, fencing, collections, and accessory hardware. It operates through the following segments Trex Residential Products and Trex Commercial Products.

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