Trex (NYSE:TREX) Shares Gap Down on Analyst Downgrade

Trex Company, Inc. (NYSE:TREX) gapped down before the market opened on Friday after Robert W. Baird lowered their price target on the stock from $110.00 to $105.00. The stock had previously closed at $93.41, but opened at $87.06. Robert W. Baird currently has a neutral rating on the stock. Trex shares last traded at $89.58, with a volume of 390,265 shares changing hands.

Other research analysts have also recently issued research reports about the company. DA Davidson upped their target price on Trex from $80.00 to $87.00 and gave the company a “neutral” rating in a research note on Tuesday, February 27th. Truist Financial boosted their price target on Trex from $70.00 to $120.00 and gave the company a “buy” rating in a report on Tuesday, February 27th. UBS Group boosted their price target on Trex from $84.00 to $100.00 and gave the company a “neutral” rating in a report on Tuesday, February 27th. Stifel Nicolaus boosted their price target on Trex from $90.00 to $107.00 and gave the company a “buy” rating in a report on Tuesday, February 27th. Finally, Barclays boosted their price target on Trex from $86.00 to $93.00 and gave the company an “underweight” rating in a report on Thursday, April 4th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, Trex currently has a consensus rating of “Hold” and a consensus target price of $89.41.

Hedge Funds Weigh In On Trex

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Redwood Investments LLC purchased a new stake in shares of Trex during the 4th quarter worth $2,271,000. WCM Investment Management LLC increased its stake in Trex by 9.4% in the fourth quarter. WCM Investment Management LLC now owns 251,159 shares of the construction company’s stock valued at $21,027,000 after purchasing an additional 21,486 shares during the period. Jacobs Levy Equity Management Inc. acquired a new position in Trex in the third quarter valued at $4,053,000. Motley Fool Wealth Management LLC acquired a new position in Trex in the fourth quarter valued at $8,590,000. Finally, Quantbot Technologies LP increased its stake in Trex by 81.8% in the third quarter. Quantbot Technologies LP now owns 63,876 shares of the construction company’s stock valued at $3,937,000 after purchasing an additional 28,746 shares during the period. Hedge funds and other institutional investors own 95.96% of the company’s stock.

Trex Price Performance

The company has a market capitalization of $9.63 billion, a price-to-earnings ratio of 46.65, a price-to-earnings-growth ratio of 2.06 and a beta of 1.60. The business’s 50 day simple moving average is $93.81 and its 200 day simple moving average is $82.69.

Trex (NYSE:TREX) last issued its earnings results on Thursday, May 9th. The construction company reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.72 by $0.10. Trex had a net margin of 18.76% and a return on equity of 31.26%. The company had revenue of $373.64 million for the quarter, compared to analyst estimates of $367.31 million. During the same period in the prior year, the business posted $0.38 earnings per share. The firm’s revenue for the quarter was up 56.5% compared to the same quarter last year. As a group, analysts expect that Trex Company, Inc. will post 2.22 EPS for the current fiscal year.

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.