Trex (NYSE:TREX) Stock Price Down 5.9% on Insider Selling

Trex Company, Inc. (NYSE:TREX)’s share price fell 5.9% during mid-day trading on Tuesday after an insider sold shares in the company. The company traded as low as $55.21 and last traded at $55.2820. 266,030 shares traded hands during trading, a decline of 86% from the average daily volume of 1,952,808 shares. The stock had previously closed at $58.74.

Specifically, SVP Jacob Rudolph sold 1,969 shares of the business’s stock in a transaction that occurred on Monday, November 9th. The stock was sold at an average price of $59.07, for a total transaction of $116,308.83. Following the sale, the senior vice president directly owned 37,462 shares in the company, valued at approximately $2,212,880.34. The trade was a 4.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Adam Zambanini sold 500 shares of the company’s stock in a transaction on Monday, November 9th. The shares were sold at an average price of $55.84, for a total value of $27,920.00. Following the completion of the transaction, the chief executive officer owned 235,505 shares of the company’s stock, valued at $13,150,599.20. The trade was a 0.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In related news, SVP Amy M. Fernandez sold 1,231 shares of the firm’s stock in a transaction on Thursday, November 5th. The stock was sold at an average price of $57.87, for a total value of $71,237.97. Following the completion of the transaction, the senior vice president directly owned 66,563 shares of the company’s stock, valued at $3,852,000.81. This trade represents a 1.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Analyst Ratings Changes

A number of brokerages have recently issued reports on TREX. Zacks Research cut shares of Trex from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 14th. Weiss Ratings upgraded shares of Trex from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, September 1st. Stifel Nicolaus set a $55.00 target price on shares of Trex and gave the company a “buy” rating in a research note on Monday, October 19th. Barclays increased their price target on shares of Trex from $42.00 to $46.00 and gave the stock an “underweight” rating in a research report on Thursday, November 5th. Finally, BMO Capital Markets set a $57.00 price target on shares of Trex in a research note on Wednesday, August 5th. Twelve equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Trex has an average rating of “Moderate Buy” and an average target price of $55.18.

Key Stories Impacting Trex

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Trex reported third-quarter sales of about $360 million, up 26% year over year, and EPS of $0.55, beating the $0.48 consensus. However, a $30 million initial distribution load-in contributed to sales, so some of the growth may not reflect recurring demand. Trex: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: CEO Adam Zambanini and two senior vice presidents disclosed share sales. The transactions trimmed their holdings by about 0.2% to 5%, while each executive retained a substantial stake. Trex insider trades
• Negative Sentiment: DA Davidson downgraded Trex from “Buy” to “Neutral” and set a $55 price target, below the cited share price of $58.77. The rating change may temper optimism despite the earnings beat. DA Davidson analyst ratings

Trex Price Performance

The firm has a 50 day simple moving average of $46.57 and a 200-day simple moving average of $43.50. The stock has a market capitalization of $5.69 billion, a price-to-earnings ratio of 31.90, a price-to-earnings-growth ratio of 3.32 and a beta of 1.46.

Trex (NYSE:TREX) last issued its earnings results on Wednesday, November 4th. The construction company reported $0.55 EPS for the quarter, beating the consensus estimate of $0.48 by $0.07. Trex had a net margin of 13.89% and a return on equity of 18.27%. The company had revenue of $359.50 million for the quarter, compared to the consensus estimate of $314.86 million. During the same quarter in the previous year, the company earned $0.51 EPS. The firm’s revenue for the quarter was up 26.0% compared to the same quarter last year. On average, sell-side analysts forecast that Trex Company, Inc. will post 1.82 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new position in Trex in the second quarter worth $525,081,000. Wellington Management Group LLP increased its stake in shares of 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 in the last quarter. Bank of America Corp DE bought a new position in shares of Trex in the second quarter valued at about $94,851,000. Royce & Associates LP raised its holdings in shares of Trex by 45.6% in the third quarter. Royce & Associates LP now owns 1,078,705 shares of the construction company’s stock valued at $46,988,000 after buying an additional 337,592 shares during the last quarter. Finally, Fort Washington Investment Advisors Inc. OH bought a new position in shares of Trex in the third quarter valued at about $32,858,000. 95.96% of the stock is owned by institutional investors and hedge funds.

Trex Company Profile