Trex (NYSE:TREX) Downgraded to Hold Rating by Zacks Research

Zacks Research lowered shares of Trex (NYSE:TREX) from a strong-buy rating to a hold rating in a research report sent to investors on Monday morning,Zacks reports.

Other research analysts have also recently issued reports about the company. Wall Street Zen upgraded Trex from a “sell” rating to a “hold” rating in a research note on Sunday, July 12th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $51.00 price objective (up from $41.00) on shares of Trex in a report on Tuesday, July 14th. Citigroup reaffirmed a “neutral” rating and issued a $52.00 target price (up from $43.00) on shares of Trex in a report on Wednesday, July 15th. Truist Financial increased their target price on Trex from $55.00 to $60.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Finally, Stephens lifted their price target on Trex from $45.00 to $50.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 28th. Ten analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $49.30.

Trex Trading Down 0.1%

Shares of Trex stock opened at $43.61 on Monday. The firm’s 50 day moving average is $45.79 and its 200 day moving average is $42.67. The firm has a market capitalization of $4.53 billion, a PE ratio of 25.96, a price-to-earnings-growth ratio of 3.01 and a beta of 1.47. Trex has a 1 year low of $29.77 and a 1 year high of $60.28.

Trex (NYSE:TREX) last issued its quarterly earnings data on Tuesday, August 4th. The construction company reported $0.62 EPS for the quarter, missing the consensus estimate of $0.63 by ($0.01). Trex had a net margin of 14.68% and a return on equity of 18.03%. The company had revenue of $418.02 million during the quarter, compared to the consensus estimate of $415.71 million. During the same period in the previous year, the company earned $0.71 EPS. Trex’s revenue for the quarter was up 7.8% on a year-over-year basis. As a group, research analysts anticipate that Trex will post 1.76 earnings per share for the current year.

Insider Buying and Selling at Trex

In other news, SVP Jacob Rudolph sold 1,400 shares of Trex stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $50.00, for a total transaction of $70,000.00. Following the transaction, the senior vice president owned 36,631 shares in the company, valued at approximately $1,831,550. The trade was a 3.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Amy M. Fernandez sold 1,050 shares of the business’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $50.07, for a total transaction of $52,573.50. Following the completion of the sale, the senior vice president directly owned 67,794 shares in the company, valued at approximately $3,394,445.58. This represents a 1.53% decrease in their position. The SEC filing for this sale provides additional information. 0.93% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of Trex in the 2nd quarter valued at $525,081,000. Bank of America Corp DE bought a new position in Trex during the second quarter worth $94,851,000. Norges Bank bought a new position in Trex during the fourth quarter worth $62,904,000. Wellington Management Group LLP lifted its holdings in Trex by 18.2% in the second quarter. Wellington Management Group LLP now owns 9,877,116 shares of the construction company’s stock valued at $494,251,000 after buying an additional 1,518,338 shares during the period. Finally, Freestone Grove Partners LP acquired a new position in Trex in the second quarter valued at $36,197,000. 95.96% of the stock is owned by institutional investors and hedge funds.

About Trex

Trex Company, Inc designs, manufactures and markets wood-alternative composite decking and outdoor living products. Its product portfolio includes decking boards, railing systems, outdoor lighting, deck drainage and related accessories sold under the Trex brand. The company’s composite products are made primarily from recycled materials and are positioned as lower-maintenance alternatives to traditional wood decking.

Trex serves residential and commercial customers through a network of dealers, distributors, retailers, contractors and building professionals.