Trex (NYSE:TREX) Upgraded to Strong-Buy at UBS Group

Trex (NYSE:TREX) was upgraded by stock analysts at UBS Group from a “hold” rating to a “strong-buy” rating in a report released on Tuesday, MarketBeat.com reports. The brokerage currently has a $52.00 price target on the construction company’s stock, up from their previous price target of $50.00. UBS Group’s price objective would indicate a potential upside of 38.91% from the stock’s current price.

Other research analysts also recently issued reports about the stock. Weiss Ratings reissued a “sell (d+)” rating on shares of Trex in a research report on Monday, December 29th. Stifel Nicolaus reaffirmed a “hold” rating and set a $35.00 target price (down previously from $61.00) on shares of Trex in a research note on Monday, November 10th. Citigroup reduced their price target on shares of Trex from $52.00 to $39.00 and set a “neutral” rating on the stock in a research report on Monday, December 15th. Truist Financial lowered their price objective on shares of Trex from $75.00 to $50.00 and set a “buy” rating for the company in a report on Wednesday, November 5th. Finally, Zelman & Associates cut Trex from an “outperform” rating to a “neutral” rating in a research report on Wednesday, November 5th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, Trex currently has an average rating of “Hold” and an average price target of $49.37.

Trex Price Performance

TREX opened at $37.44 on Tuesday. Trex has a one year low of $29.77 and a one year high of $75.55. The business has a 50 day simple moving average of $35.52 and a two-hundred day simple moving average of $50.36. The firm has a market capitalization of $4.01 billion, a price-to-earnings ratio of 20.35 and a beta of 1.55.

Trex (NYSE:TREX) last issued its quarterly earnings data on Tuesday, November 4th. The construction company reported $0.51 earnings per share for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.06). The business had revenue of $285.35 million during the quarter, compared to the consensus estimate of $301.74 million. Trex had a return on equity of 21.90% and a net margin of 16.76%.Trex’s quarterly revenue was up 22.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.37 earnings per share. As a group, sell-side analysts expect that Trex will post 2.04 EPS for the current fiscal year.

Insider Buying and Selling

In other Trex news, CFO Prithvi Gandhi acquired 15,000 shares of the company’s stock in a transaction that occurred on Friday, November 14th. The shares were acquired at an average price of $31.92 per share, with a total value of $478,800.00. Following the completion of the purchase, the chief financial officer directly owned 30,664 shares of the company’s stock, valued at approximately $978,794.88. The trade was a 95.76% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.74% of the stock is owned by insiders.

Hedge Funds Weigh In On Trex

Several large investors have recently made changes to their positions in TREX. Red Spruce Capital LLC boosted its stake in shares of Trex by 276.5% in the 2nd quarter. Red Spruce Capital LLC now owns 56,973 shares of the construction company’s stock worth $3,098,000 after buying an additional 41,841 shares during the last quarter. Voya Investment Management LLC increased its position in Trex by 24.0% during the first quarter. Voya Investment Management LLC now owns 395,913 shares of the construction company’s stock valued at $23,003,000 after acquiring an additional 76,562 shares during the last quarter. Campbell & CO Investment Adviser LLC bought a new position in Trex in the second quarter valued at about $3,015,000. Advantage Alpha Capital Partners LP boosted its position in Trex by 169.2% in the second quarter. Advantage Alpha Capital Partners LP now owns 75,013 shares of the construction company’s stock worth $4,079,000 after purchasing an additional 47,143 shares during the last quarter. Finally, Pembroke Management LTD boosted its position in Trex by 23.7% in the second quarter. Pembroke Management LTD now owns 427,238 shares of the construction company’s stock worth $23,233,000 after purchasing an additional 81,970 shares during the last quarter. 95.96% of the stock is currently owned by hedge funds and other institutional investors.

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.