DA Davidson Reaffirms “Buy” Rating for Trex (NYSE:TREX)

Trex (NYSE:TREX)‘s stock had its “buy” rating reaffirmed by DA Davidson in a research report issued to clients and investors on Tuesday,Benzinga reports. They presently have a $55.00 price objective on the construction company’s stock. DA Davidson’s target price suggests a potential upside of 21.98% from the stock’s current price.

A number of other research firms have also recently commented on TREX. Citigroup reiterated a “neutral” rating and issued a $43.00 price objective (down from $46.00) on shares of Trex in a report on Monday, May 11th. Barclays restated an “underweight” rating and issued a $42.00 target price (up from $36.00) on shares of Trex in a research report on Tuesday. Stifel Nicolaus upped their price target on Trex from $44.00 to $47.00 and gave the company a “hold” rating in a research note on Tuesday. Bank of America cut their price objective on Trex from $43.00 to $42.00 and set an “underperform” rating for the company in a research report on Monday, April 20th. Finally, Truist Financial boosted their price objective on shares of Trex from $55.00 to $60.00 and gave the company a “buy” rating in a report on Tuesday. Ten research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $48.42.

Trex Stock Performance

Shares of NYSE:TREX traded down $0.81 during midday trading on Tuesday, hitting $45.09. The company’s stock had a trading volume of 706,721 shares, compared to its average volume of 1,951,746. The company has a market cap of $4.68 billion, a P/E ratio of 25.34, a price-to-earnings-growth ratio of 9.58 and a beta of 1.46. Trex has a 12-month low of $29.77 and a 12-month high of $68.78. The business’s 50 day simple moving average is $43.41 and its 200 day simple moving average is $41.09.

Trex (NYSE:TREX) last announced its quarterly earnings data on Thursday, May 7th. The construction company reported $0.59 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.08. Trex had a return on equity of 19.66% and a net margin of 16.25%.The firm had revenue of $343.40 million for the quarter, compared to the consensus estimate of $339.99 million. During the same quarter last year, the business posted $0.60 earnings per share. The firm’s revenue was up 1.0% compared to the same quarter last year. On average, sell-side analysts predict that Trex will post 1.68 earnings per share for the current fiscal year.

Insider Transactions at Trex

In related news, SVP Jacob T. Rudolph sold 1,400 shares of the firm’s stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $50.00, for a total transaction of $70,000.00. Following the completion of the transaction, the senior vice president directly owned 36,631 shares in the company, valued at $1,831,550. This trade represents a 3.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.93% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. AQR Capital Management LLC raised its stake in Trex by 3.2% during the 1st quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company’s stock worth $320,000 after acquiring an additional 177 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in Trex by 91.3% in the first quarter. Goldman Sachs Group Inc. now owns 822,772 shares of the construction company’s stock valued at $47,803,000 after acquiring an additional 392,715 shares in the last quarter. Hsbc Holdings PLC grew its holdings in shares of Trex by 6.3% during the second quarter. Hsbc Holdings PLC now owns 5,403 shares of the construction company’s stock worth $294,000 after purchasing an additional 322 shares during the last quarter. First Trust Advisors LP grew its holdings in shares of Trex by 535.1% during the second quarter. First Trust Advisors LP now owns 22,038 shares of the construction company’s stock worth $1,198,000 after purchasing an additional 18,568 shares during the last quarter. Finally, Jump Financial LLC acquired a new stake in shares of Trex during the second quarter worth about $1,055,000. Institutional investors and hedge funds own 95.96% of the company’s stock.

Key Trex News

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Truist Financial raised its price target on Trex to $60 from $55 and kept a Buy rating, implying meaningful upside from recent trading levels. Benzinga report on Truist price target raise
• Positive Sentiment: Trex said it is upgrading its North American distribution network and named Specialty Building Products (SBP) as its sole national distributor, a move that could improve reach and operational efficiency. Trex Company Upgrades Distribution Network; Raises Full Year Guidance
• Positive Sentiment: Management also raised full-year 2026 guidance, signaling confidence in demand and execution despite a mixed housing backdrop. Trex guidance update
• Neutral Sentiment: Stifel Nicolaus lifted its target to $47 from $44 but kept a Hold rating, reflecting a more cautious view even after the recent rally. Benzinga report on Stifel price target raise
• Neutral Sentiment: Trex also discussed strategic distribution network changes and preliminary quarterly results in a transcript, but the market focus appears to be on the distribution overhaul and guidance rather than detailed earnings figures. Seeking Alpha transcript

About Trex

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.